Global equities under pressure as tariffs shake markets
Global stocks extended their losses on Friday after a brutal sell-off on Thursday triggered by Donald Trump’s tariff blitz.
The Stoxx Europe 600 index fell 1 per cent in early trading. Germany’s Dax was down 0.7 per cent. Asian markets also fell, with the US set to extend declines as investors moved into government bonds.
Futures markets pointed to fresh drops on Wall Street, although the declines were expected to slow from Thursday, when the S&P 500 suffered its biggest one-day drop since 2020. S&P futures fell 0.5 per cent on Friday.
Japan’s Topix closed 3.4 per cent lower, with Australia’s S&P/ASX 200 index down 2.4 per cent and South Korea’s Kospi down 1.7 per cent.
Oil prices continued to fall, with Brent crude down 1.8 per cent at $68.86 a barrel.
Government bond yields dropped as investors sought haven assets, with the 10-year US Treasury falling below 4 per cent. Yields on 10-year Japanese government bonds dropped 0.16 percentage points to 1.2 per cent.
Investors will be watching US labour market data. Economists polled by Reuters estimate that 135,000 jobs were added in March.
Federal Reserve chair Jay Powell will deliver a speech in the late US morning. Futures markets are pricing in four quarter-point interest rate cuts from the Fed by the end of this year, from the three that were expected before Wednesday’s tariffs announcement.
The US dollar was up 0.2 per cent against a basket of peers, steadying after Thursday’s steep decline.
