Wall Street up slightly, Europe falls on tariffs.
Markets in the U.S. and Europe are trading cautiously as they await the Trump administration’s announcement of new tariffs. Concerns are mounting that these measures could impact the global economy.
On Wall Street, stocks are posting gains this Wednesday, while European markets are slipping amid uncertainty over the imminent tariffs on key sectors such as aluminum, steel, and automobiles, along with new levies on Chinese goods. The U.S. dollar is losing ground against a basket of currencies, while gold is rising, approaching its all-time high.
Market and Currency Reactions
The Dow Jones is up 0.2% to 42,063.78 points, the S&P 500 has gained 0.2% to 5,641.67 points, and the Nasdaq Composite is edging 0.1% higher to 17,466.50 points.
The White House has stated that the new tariffs will take effect immediately. Meanwhile, European Central Bank President Christine Lagarde warned that the impact will be “negative worldwide.”
In the currency market, the U.S. dollar index is down 0.4% to 103.81. The euro has climbed to $1.085, while the British pound has strengthened to $1.2965 after losses in the previous session.
Against the yen, the dollar has fallen 0.3% to 149.24 as investors seek refuge in the Japanese currency.
Gold, seen as a safe-haven asset in times of uncertainty, has risen 0.5% to $3,125 per ounce, just below its all-time high recorded on Tuesday.
Impact in Europe and Trade Tensions
European markets opened with moderate losses: the STOXX 50 is down 0.5%, while Germany’s DAX has dropped 0.7%. In Madrid, the Ibex 35 is holding steady, while London, Paris, Frankfurt, and Milan are also seeing declines.
In Spain, Prime Minister Pedro Sánchez has called a meeting with business leaders and unions to assess the situation. Analysts warn that if the trade war escalates, the European Union may retaliate, with Germany being particularly vulnerable.
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