Global Markets React to Trump’s Tariff Comments
European Stocks Rise Amid Uncertainty
European markets opened strong on Wednesday, with France’s CAC 40 surging 0.7% to 7,827.19 and Germany’s DAX adding 1% to 21,253.12. Britain’s FTSE 100 also saw a 0.4% increase to 8,578.57. Meanwhile, futures for the S&P 500 and Dow Jones Industrial Average rose 0.4% and 0.2%, respectively.
Asian Markets Mixed After Trump’s Tariff Threats
In Asia, investors were initially relieved on Monday when Trump decided not to impose significant tariffs on China. However, on Tuesday, Trump announced he was considering a 10% punitive duty on Chinese imports due to concerns about fentanyl smuggling. This uncertainty led to a mixed performance in Asian markets. Hong Kong’s Hang Seng dropped 1.6% to 19,778.77, while the Shanghai Composite lost 0.9% to 3,213.62.
AI Investment Push Boosts Tokyo and Taiwan
In Tokyo, the Nikkei 225 index surged 1.6% to 39,646.25 after Trump announced a joint venture to invest up to $500 billion in artificial intelligence infrastructure. Softbank Group Corp.’s Japan-listed shares skyrocketed 10.6% on Wednesday. Taiwan’s Taiex also gained 1% after Trump’s AI investment push, with Taiwan Semiconductor Manufacturing Corp. increasing by 1.3%.
Other Markets See Gains
South Korea’s Kospi added 1.2% to 2,547.06, and Australia’s S&P/ASX 200 rose 0.3% to 8,429.80. On Tuesday, the S&P 500 climbed 0.9% to 6,049.24, while the Dow Jones Industrial Average rose 1.2% to 44,025.81, and the Nasdaq composite added 0.6% to 19,756.78.
Currency and Commodity Markets React
U.S. Treasury yields gave back some of their recent gains, which had put pressure on stock markets worldwide. In the foreign-currency market, the Mexican peso and Canadian dollar fell against the U.S. dollar after Trump’s tariff threats. Bitcoin pulled back from its record high set on Monday, trading just above $105,000 early Wednesday. Benchmark U.S. crude gained 29 cents to $76.12 a barrel, while Brent crude picked up 31 cents at $79.60 a barrel. The U.S. dollar rose to 155.70 Japanese yen from 155.51 yen, and the euro cost $1.0440, down from $1.0430.
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