Frankfurt, Apr. 3, (dpa/GNA) – Global markets reacted to US President Donald Trump’s massive tariffs with a worldwide sell-off, as investors worried about the economic effects and instability of the measures.
The Dow Jones Industrial Average fell 2.7% at the start of trading to 41,098 points. However, it managed to initially not fall below its recent mid-March low of 40,661 points. This would have marked the largest percentage daily loss for the Dow since September 2022.
As of 10:11 am (1411 GMT) in New York it was trading at 40,687.87, down 3.64%.
Losses were even greater on the Nasdaq, which is dominated by major technology stocks. The Nasdaq 100 Index dropped 3.9% to 18,828 points, at the opening, reaching its lowest level since September last year.
It lost additional ground by 10:13 am when it was trading at 18,713.57, down 4.43%.
The Nasdaq has now recorded a loss of more than 10% for the 2025 trading year. The S&P 500 fell 3.2% to 5,487 points, also hitting its lowest level since September 2024.
At 10:14 am it was at 5,444.55, down 3.99%.
New York losses preceded by ones in Frankfurt, Tokyo
In Germany, the DAX fell to its lowest level since February. It was trading at 21,700.36, down 3.08% at the day’s close.
The MDAX of medium-sized companies fell by 2.44% to 26,824 points in early trading and was at 26,904.16 for a loss of 2.15% at the end of the trading day.
The eurozone’s leading index, the EuroStoxx 50, also lost more than 2% in early trading and was later 3.61% lower at the close.
Stephen Dover, market strategist at Franklin Templeton, described the development as the end of the free trade era. He said Trump’s tariffs were much higher than expected.
In this environment, assets considered safe havens, such as gold and government bonds, were in demand. The tariff package is accompanied by concerns about economic growth.
Central banks could cushion some of the economic consequences through loose interest rate and monetary policy measures, said stock market expert Andreas Lipkow.
However, he added that they are constrained by the tight framework of inflation developments, which are also being influenced by the punitive tariffs.
Activity in the German markets mirrored that of the Tokyo stock exchange, which tumbled on Thursday after tariff announcement.
Japan’s Nikkei index, comprising 225 leading stocks on the Tokyo stock exchange, fell sharply. It closed at 34,735.93, down 2.7%.
In Vietnam, the stock market experienced its most significant downturn in 24 years, with the VN-Index on the Ho Chi Minh Stock Exchange (HoSE) dropping 88 points or 6,9 %, to close at 1.229,8 point, the sharpest drop in the region.
Vietnam Prime Minister Pham Minh Chinh on Thursday chaired an urgent cabinet meeting to discuss measures to limit negative effects of the US tariffs.
The US tariffs on Vietnam, among the highest on any of the targeted 180 economies, “did not reflect the strong bilateral relations between the two nations”, state media reported, quoting Chinh.
Euro gains over dollar
The euro significantly gained over the US dollar in Thursday trading, reaching $1.11191 just after noon (1000 GMT), its highest level in six months, before falling back a bit. Four hours later it was trading around $1.11027.
Prior to Wednesday’s press conference by US President Donald Trump, during which he announced extensive tariffs, the euro had been valued at $1.0850.
Trump’s new blanket tariffs include a minimum 10% on most US imports, with higher penalties based on trade deficits. Imports from the European Union will face a 20% tariff, while Japan, a key high-tech exporter, will see a 24% tariff.
The euro exchange rate had already risen sharply in recent weeks in response to Trump’s economic policies.
“Remarkably, the US dollar is not benefiting as a safe haven,” commented experts from Dekabank. Instead, the euro and the Japanese yen have been able to appreciate.
“Apparently, investors primarily see risks for the US,” they added. However, fluctuations in exchange rates are expected as trading continues. Markets are likely to hope for short-term negotiated solutions to limit the impact on the global economy.
GNA
PDC