Global stock markets showed mixed performance on Wednesday as investors assessed the potential effects of President Donald Trump’s new tariffs, following another day of losses on Wall Street.
U.S. futures and oil prices saw an uptick.
In Europe, France’s CAC 40 increased by 0.9% to reach 8,014.58. Germany’s DAX rose 1.5% to 22,644.81, while the UK’s FTSE 100 gained 0.5% to 8,542.24. U.S. stock futures also pointed to a slight rise, with Dow futures up nearly 0.1% to 41,510.00, and S&P 500 futures climbing 0.6% to 5,610.00.
The escalation of Trump’s trade war continues to stir uncertainty in global markets. The president has raised tariffs on Canadian steel and aluminum, leading the Canadian province of Ontario to remove a surcharge that had angered him.
In Asia, Japan’s Nikkei 225 saw a minimal change, edging up less than 0.1% to 36,819.09. Hong Kong’s Hang Seng index dropped by 0.9% to 23,566.42, while the Shanghai Composite fell 0.2% to 3,371.92.
Australia’s S&P/ASX 200 dropped by 1.3%, falling to 7,786.20, while South Korea’s Kospi gained 1.5%, reaching 2,574.82.
Stock prices declined due to uncertainty over how much economic strain President Trump is willing to cause to achieve his goals.
“Trump’s tariff policies continue to destabilize the markets, leaving investors uncertain about which measures might be introduced or rolled back next,” said Tim Waterer, chief market analyst at KCM Trade.
Actions by President Trump and statements from the White House on Tuesday did little to provide clarity. White House press secretary Karoline Leavitt stated, “The president will look out for both Wall Street and Main Street.”
The recent market fluctuations have been fueled by growing concerns about the economy, as Trump’s fluctuating tariff policies create confusion and pessimism for both U.S. households and businesses.
Tariffs can directly harm the economy by raising prices for U.S. consumers and disrupting global trade. Even if the tariffs end up being less severe than expected, the constant back-and-forth could lead to hesitation among U.S. companies and consumers, making them reluctant to invest or spend.
In energy markets, benchmark U.S. crude gained 34 cents, reaching $66.59 per barrel. Brent crude, the global standard, increased by 31 cents, settling at $69.87 per barrel.
In the currency market, the U.S. dollar strengthened against the Japanese yen, rising to 148.50 yen from 147.78 yen. The euro was priced at $1.0921, slightly up from $1.0919.