Global stock markets and shares in European carmakers tumbled on Tuesday as US president Donald Trump’s broad tariffs against Canada, Mexico and China came into effect.
European stocks slumped as investors weighed the prospects of a global trade war after China and Canada quickly retaliated with tariffs of their own. U.S. futures signaled that the S&P 500 would open slightly lower, after it dropped 1.8% Monday, its worst day this year.
The Euro Stoxx 50 index, which comprises the eurozone’s largest companies, fell as much as 2.4 per cent, its worst performance in about four months. Germany’s benchmark index, the Dax, dropped as much as 2.6 per cent, erasing nearly all of its gains from the previous day when it hit a record on the promises for more European military spending.
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Most big shares on the Iseq followed the general global market trend downward, ending the session in the red. Ryanair, AIB and Bank of Ireland led the charge, falling by 4 per cent, 4.8 per cent and 2.5 per cent respectively. After a major slide last week on the back of a downsized earnings forecast, Glanbia shares took another near 7 per cent tumble, closing the session at €10.46. The weaker earnings outlook was based on the higher cost of whey, a key input in the group’s suite of protein powder products. Corre Energy fell 22 per cent to 10 cent after the storage solutions for renewable energy said that its cash and unused loan facilities have fallen to €2.5 million, as it proceeds with a plan to delist from the Dublin stock market.
EUROPE
Shares of German automakers and suppliers were hit especially hard from Trump’s latest tariff measures as many have assembly plants in Mexico for vehicles they sell in the United States. Volkswagen shares fell about 4 per cent, BMW’s shares dropped more than 5 per cent. Daimler Truck, which owns Freightliner and Thomas Built Buses, slid more than 6 per cent. Continental, a maker of auto parts that also produces in Mexico, fell 9 per cent.
Amid a heavy morning of losses, some European defense companies held on to gains as the European Commission proposed additional military spending, including a measure that would provide €150 billion in loans to European Union countries for defense investment. Shares in the German arms manufacturer Rheinmetall rose 1 per cent, extending a 14 per cent gain from the day before. Shares of BAE Systems, a British defense contractor, rose 1 per cent after climbing 15 per cent Monday.
LONDON
The FTSE 100 retreated from record highs set earlier this week, as global markets recoiled from US president Donald Trump’s tariff policies, amid concerns over a global trade war. London’s blue-chip index tumbled 112 points to finish the day at 8,759, or a 1.27 per cent fall, its biggest since October 8th last year.
In company news, Greggs revealed a jump in sales and profits in 2024 as it launched new shops, extended its opening hours and raised prices. But shares nonetheless plunged as the group signalled that sales growth was slowing, with the stock finishing 13.2 per cent down.
Meanwhile, investors in Aberdeen Group cheered a name change from its previous moniker, Abrdn, as the company also reported that profit grew 2 per cent to £255 million. The 200-year-old fund management giant was previously known as Standard Life Aberdeen before adopting Abrdn in 2021, in a rebrand that prompted widespread mockery. Shares in the company rose 7.7 per cent. The biggest risers on the FTSE 100 were Intertek, up 225p to 5380p, Severn Trent, up 71p to 2506p, Marks & Spencer, up 9.9p to 374.6p.
NEW YORK
The US stock market is facing a reckoning with the arrival of president Donald Trump’s latest tariffs.
With fresh declines on Tuesday, the benchmark S&P 500 is down more than 6 per cent from its February 19th all-time closing high, and in negative territory for the year. The tech-heavy Nasdaq Composite was last down over 10 per cent from its mid December closing peak, on pace to show it has been in a correction for several months.
Tariffs are exacerbating the headache for investors already worried that a series of weakening US economic reports is raising concerns about growth.
Ford and General Motors, that have vast supply chains across north America, fell 3 per cent and 3.6 per cent, respectively, while housing stocks touched a one-year low. Nasdaq components such as Nvidia and Meta fell, while Tesla dropped 5.8 per cent after weak monthly China sales data.
Investors are pricing in that the surcharges will fan inflation pressures, dampen demand and eat into corporate profits at a time when recent data has resurfaced expectations of a stalling economy. The domestically focused Russell 2000 index fell 2 per cent.
Additional reporting by Reuters
