MARKETS TREND
The market trend factors in multiple indicators, including Simple Moving Average, Exponential Moving Average, Pivot Point, Bollinger Bands, Relative Strength Index, and Stochastic.
Stock markets have turned lower again today with auto tariffs announced, and the GM stock has dived 10% after the close, while Mercedes is leading the decline in Dax, which was the biggest losers among major European stock indices today.
classic mercedes benz detail
Market Volatility Ahead of Tariff Announcement
Financial markets experienced heightened volatility as investors braced for US trade tariffs on automobiles, set to be announced next week. White House Press Secretary Karoline Leavitt confirmed that President Trump will reveal the auto tariff details at 4 p.m. ET today, adding further uncertainty to global markets.
European officials have previously hinted at the possibility of reducing tariffs on US cars, potentially as a strategic move before the April 2 deadline. If such an adjustment is made, it could provide an opportunity for Trump to claim a diplomatic victory while easing tensions.
Stock Market Reaction: DAX 40 and Auto Stocks Decline
The German DAX 40 fell over 1%, reflecting investor concerns over the potential impact of tariffs on Europe’s key industries. Mercedes-Benz (Daimler) and Volkswagen dropped around 3%, leading losses in the European auto sector.
Mercedes Benz Shares Chart daily – The 200 SMA Acting As Support
General Motors (GM) fell 1.7%, while Ford declined 1.6% during the day, as US automakers also reacted to tariff uncertainties, but after the close, the decline escalated as auto tariffs were announced, with a 25% levy on all imported cars, with GM shares diving more than 10%, while Ford shares fell by 5%.
US stock indices were hit hard, with the S&P 500 down 1.2% and the Nasdaq slipping 2%, as technology and manufacturing stocks took losses. This should turn out good on the long run for US car manufacturers, particularly since the car parts weren’t included. But for now, the initial market reaction has sent Ford and GM stocks lower.
Tariff Strategy: A Tactical Move?
An article from the Wall Street Journal revealed additional information on the administration’s approach to the planned tariffs. The White House is considering putting tariffs on fully completed vehicle imports, but may exempt auto parts. Trump’s economic team is developing a reciprocal tariff policy, with rates set for various trade partners based on existing tax and regulatory barriers. The administration may not fully apply the maximum tariff rates, but they might be used as leverage in trade negotiations.
European Stock Markets Close Mixed Amid Economic and Trade Uncertainty
Key Closing Figures:
DAX 40 (Germany): Closed at 22,839 points, down -270.76 (-1.17%)
FTSE 100 (UK): Closed at 8,689.59 points, up +25.79 (+0.30%)
CAC 40 (France): Closed at 8,030.68 points, down -77.91 (-0.96%)
IBEX 35 (Spain): Closed at 13,432.20 points, down -52.10 (-0.39%)
FTSE MIB (Italy): Closed at 39,058.10 points, down -326.85 (-0.83%)
Market Trends and Analysis:
German DAX 40 saw the biggest decline, falling over 1.1%, as investor sentiment weakened amid uncertainty over trade policies and economic outlook in the Eurozone.
UK’s FTSE 100 outperformed, gaining 0.30%, supported by strength in consumer and energy stocks, as well as optimism over potential policy adjustments.
French CAC 40 and Spanish IBEX 35 both declined, reflecting concerns over slower economic growth in the region.
Italian FTSE MIB dropped nearly 0.83%, mirroring weakness in European banking and industrial sectors.
European markets ended the session mixed, with Germany’s DAX and France’s CAC leading losses, while the UK’s FTSE 100 managed to post modest gains. Market sentiment remains fragile due to ongoing global trade discussions, inflation concerns, and economic policy uncertainty. Investors are now looking ahead to key economic reports and central bank statements for further direction.
Conclusion
As markets remain on edge ahead of the official tariff announcement, investors are closely watching for any signs of compromise between the US and European regulators. If tariff reductions from the EU are announced before April 2, it could help ease market fears and stabilize auto stocks. However, if full tariffs are imposed, further declines in automotive and broader equity markets may follow.
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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