Wall Street Suffers Continued Decline Amid Trade War Fears
S&P 500 Hits Six-Month Lows as President Trump Threatens New Tariffs
Wall Street experienced another downturn on Thursday, with the S&P 500 index reaching its lowest point in six months as concerns surrounding escalating trade tensions intensified.
President Donald Trump announced plans for a potential 200% tariff on European wines, champagnes, and spirits, following the European Union's proposition for retaliatory tariffs on American whiskey.
This development exacerbated trade war apprehensions, which have seen new tariffs imposed recently on countries including Canada, Mexico, China, and on steel and aluminum imports from the UK.
In London, the FTSE 100 index ended the day with a slight increase of 1.59 points (0.02%), closing at 8,542.56, supported by gains in mining companies, although many other sectors lagged.
Among the notable decliners were lenders and house builders, as new data indicated that demand among UK home buyers has fallen to its weakest level since November 2023. Survey results from the Royal Institution of Chartered Surveyors revealed that concerns related to interest rates, inflation, and various global events have dampened consumer confidence in the housing market.
As global markets reacted to the US's trade policies, the S&P 500 recorded a decline of 1.4% by the time European markets closed, marking a continuation of its recent downward trend.
The Dow Jones Industrial Average fell by 1.3%, further illustrating the market's nervousness over the potential consequences of new tariffs.
European stock markets also reflected this uncertainty, with Germany's DAX index declining by 0.48%, while France's CAC 40 dropped by 0.64%.
The currency market saw the British pound decrease approximately 0.1% against the US dollar, trading at 1.295, while remaining relatively unchanged against the euro at 1.191.
In corporate news, shares of C&C Group, known for its Magners cider, fell sharply by 19.1% after the company announced it anticipated reporting earnings below expectations for the fiscal year, with management citing weaker sales performance in January and February as a factor influencing broader consumer sentiment.
Similarly, Trainline's stock price decreased by 13.2%, despite reporting a record increase in ticket sales for the previous year, up 12% from the prior period.
The company expressed concerns about increased competitive pressures due to the introduction of a government-owned train operator, Great British Railways, which may lead to the development of a competing national ticketing application as part of proposed reforms.
On the FTSE 100, the largest gainers included Vodafone, which rose by 3.22p to 73.28p; Antofagasta, which climbed 49.5p to 1,808p; and BT, rising 3.65p to 156.4p.
Conversely, the most significant declines were seen in Melrose Industries, whose shares fell 21.8p to 496.2p; Hiscox, down 46p to 1,103p; and Diploma, which dropped 150p to 3,920p.
President Donald Trump announced plans for a potential 200% tariff on European wines, champagnes, and spirits, following the European Union's proposition for retaliatory tariffs on American whiskey.
This development exacerbated trade war apprehensions, which have seen new tariffs imposed recently on countries including Canada, Mexico, China, and on steel and aluminum imports from the UK.
In London, the FTSE 100 index ended the day with a slight increase of 1.59 points (0.02%), closing at 8,542.56, supported by gains in mining companies, although many other sectors lagged.
Among the notable decliners were lenders and house builders, as new data indicated that demand among UK home buyers has fallen to its weakest level since November 2023. Survey results from the Royal Institution of Chartered Surveyors revealed that concerns related to interest rates, inflation, and various global events have dampened consumer confidence in the housing market.
As global markets reacted to the US's trade policies, the S&P 500 recorded a decline of 1.4% by the time European markets closed, marking a continuation of its recent downward trend.
The Dow Jones Industrial Average fell by 1.3%, further illustrating the market's nervousness over the potential consequences of new tariffs.
European stock markets also reflected this uncertainty, with Germany's DAX index declining by 0.48%, while France's CAC 40 dropped by 0.64%.
The currency market saw the British pound decrease approximately 0.1% against the US dollar, trading at 1.295, while remaining relatively unchanged against the euro at 1.191.
In corporate news, shares of C&C Group, known for its Magners cider, fell sharply by 19.1% after the company announced it anticipated reporting earnings below expectations for the fiscal year, with management citing weaker sales performance in January and February as a factor influencing broader consumer sentiment.
Similarly, Trainline's stock price decreased by 13.2%, despite reporting a record increase in ticket sales for the previous year, up 12% from the prior period.
The company expressed concerns about increased competitive pressures due to the introduction of a government-owned train operator, Great British Railways, which may lead to the development of a competing national ticketing application as part of proposed reforms.
On the FTSE 100, the largest gainers included Vodafone, which rose by 3.22p to 73.28p; Antofagasta, which climbed 49.5p to 1,808p; and BT, rising 3.65p to 156.4p.
Conversely, the most significant declines were seen in Melrose Industries, whose shares fell 21.8p to 496.2p; Hiscox, down 46p to 1,103p; and Diploma, which dropped 150p to 3,920p.
