From 2h
ago
14.34 BST
Stocks
tumble on Wall Street amid fall in global markets as US tariffs rattle
investors
Newsflash:
Stocks are tumbling on Wall Street at the start of trading, as New York traders
give their verdict on the new trade war unleashed by the White House last
night.
As the
opening bell rang out across the New York stock exchange, the Dow Jones
industrial average, which tracks 30 of the largest US companies, promptly
plunged by 1,137 points, or 2.7%, to 41,087 points.
Nike is
the biggest faller, sliding by over 10%, while Amazon and Goldman Sachs have
both dropped by around 6%.
The
broader S&P 500 share index is sliding down too – it’s down 3.3% in early
trading.
The
tech-focused Nasdaq is being hammered, down 4.5%.
This
follows heavy losses in Asia-Pacific markets earlier today, where Vietnam’s
main share index slumped by 6.8% after Vietnamese goods were hit with a new 46%
tariff.
European
markets are deep in the red too, with the UK’s FTSE 100 index is now down 1.6%
or 138 points, at 8469 points.
Markets
have been shaken by Donald Trump’s new tariffs, which are widely expected to
hurt the outlook for global growth and inflation.
Chris
Iggo, chief investment officer for Core Investments at AXA, explains:
The
sweeping tariff package came in at the high end of expectations and, according
to analysts, will increase the effective tariff on imports to the US to between
20% and 25%.
Some
analysts suggest that US economic growth could be reduced by 1% to 2% while
inflation will move higher. This will be seen as a stagflation for the US
economy. Tariffs on goods from the rest of the world should reduce export
growth and will be a negative growth shock, with Asia and Europe most affected
given the size of the proposed tariff rates.
Updated
at
14.36 BST
11m ago
16.01 BST
Apple's
value hit by Trump tariffs
Nearly
$300bn has been wiped off Apple’s value today, amid the stock market turmoil.
Apple’s
shares are currently down 9%, which by my maths cuts its market capitalisation
to around $3.07 trillion, down from $3.367tn last night.
Apple
will be hurt by the new US tariffs on imports from China, Taiwan, India and
Vietnam, as much of its manufacturing and supply chain is based in the
Asia-Pacific region.
Ben
Barringer, global technology analyst at Quilter Cheviot, told clients:
“Apple
makes 90% of its products in China, with 10% in other Asian countries such as
Vietnam and India. These countries are facing the harshest tariffs, so we can
expect iPhones and Apple Watches to go up in price, while hitting the profits
of the company significantly. Switching production to the US is neither easy,
nor cheap.
The
tariffs are also likely to create demand destruction, which means cutbacks on
software and cloud spending. Alphabet, will see a double whammy with digital
advertising also cut back on in a tougher economic environment – with Meta also
being hit in this regard.
Updated
at
16.06 BST
27m ago
15.45 BST
Concerns
have been growing today that Donald Trump’s tough new tariffs could push the US
economy into a recession.
Seema
Shah, chief global strategist at Principal Asset Management, has warned that
initial estimates suggest that US GDP growth is likely to see an initial hit of
around 2.5%, with the fallout potentially larger if some trade partners
retaliate.
Shah adds
that early calculations suggest that a U.S. recession could materialize unless:
At least
some tariff rates are reduced in the coming months; and,
The Fed
resumes policy rate cuts; and,
Growth-friendly
measures are introduced later this year, such as tax cuts and deregulation.
31m ago
15.41 BST
UK food
producers are hoping that London will not cave into pressure from Washington to
relax food standards to reach a trade deal.
Country
Land and Business Association (CLA) vice president Joe Evans says:
“Donald
Trump might demand we eat chlorinated chicken and beef reared using growth
hormones – but British consumers say no. British farmers, who must comply with
some of the highest animal welfare and environmental regulations in the world,
should not be forced to compete with American farmers who produce cheap food to
much lower standards.
“British
exports will be affected by these tariffs, which could harm producers of world
class wine, spirits, cheeses and other goods. The best thing the public can do
to support these farmers and producers is to buy British.
“Ministers
would do well to remember that it is the job of British farmers to feed the
nation, whilst at the same time being exemplars of sustainable farming
practices. We can only do that with a strong and healthy farming sector.
Unfortunately, recent government policies – such as changes to inheritance tax
– have left the industry considerably weaker. The Prime Minister and the
Chancellor should reverse these disastrous policies immediately, adding a new
line of defence against America’s aggressive trade demands.”
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