Ongoing uncertainty roiled global markets amid a sharp escalation in the trade war and tit-for-tat tariffs that could squeeze growth this year.
China, which is currently facing 54 per cent tariffs on exports to the US, retaliated with additional tariffs of 34 per cent on all US goods from April 10th, intensifying a trade war between the two major global economies.
Dublin
The Irish index of shares fell 4.7 per cent, following most major European markets as banking stocks tumbled and construction shares shed their value.
Banking stocks slipped as investors fretted about growth and priced in far more central bank rate cuts amid tariff concerns. AIB was down almost 9 per cent by the close of the day, dropping to €5.34, while Bank of Ireland shed almost 8 per cent and Permanent TSB was 4.7 per cent lower. Insurer FBD lost 2 per cent.
Construction stocks also dipped, with insulation specialist Kingspan down almost 6 per cent and home builders Glenveagh and Cairn losing 4.2 per cent and 3.1 per cent respectively. Property group Ires Reit, the State’s largest landlord, fell 3.7 per cent.
Food group Kerry shed 1.6 per cent in value, with Glanbia down 3.6 per cent.
London
British stocks plunged on Friday as investors avoided risky assets after China’s retaliatory tariffs against the United States heightened worries of a global recession.
The blue-chip FTSE 100 index touched a more than three-month low, down nearly 5 per cent – its largest daily drop since March 2020, when world markets slumped due to Covid-19.
The midcap index slipped 4.4 per cent, closing at a 16-month low.
All stocks in the FTSE 100, barring JD Sports Fashion, lost ground on the day.
Aerospace and defence led sectoral declines, down 9 per cent.
Heavyweight Shell was the biggest drag on the FTSE 100, down nearly 7 per cent. BP declined 7.4 per cent after an announcement that Chair Helge Lund intends to step down “likely during 2026”, amid a campaign by activist hedge fund Elliott for more change at the oil major.
Europe
The pan-European STOXX index closed 5.1 per cent lower, its biggest daily loss since the Covid-19-fuelled sell-off in 2020. The index fell nearly 12 per cent from its March 3rd all-time closing high, confirming it was in correction territory.
The index’s weekly loss of more than 8 per cent was also its worst in five years as investors shunned risk and sought safe-haven assets. Euro zone government bond yields dropped sharply.
Germany’s DAX and the euro zone blue-chip index also confirmed they were in a correction, dropping 5 per cent and 4.6 per cent, respectively.
Among regional markets, stocks in Spain declined 5.8 per cent, France fell 4.3 per cent and Italy lost 6.5 per cent.
All major European sectors were in the red, with European banks leading declines with an 8.4 per cent loss and closing their worst week in three years.
The luxury sector, which heavily relies on China, also faltered as France’s LVMH lost 2.4 per cent, while Gucci owner Kering dropped 3.8 per cent.
New York
A sell-off in stocks deepened on Friday, bonds surged and oil hit a four-year low as Federal Reserve chair Jerome Powell signalled the damage of a trade war will be bigger than anticipated.
The looming Nasdaq 100 bear market has wiped out nearly $6 trillion from the tech-heavy benchmark since its peak.
Several forecasters are turning ice cold on US equities, telling investors to refrain from buying the sell-off as a historic trade war raises the spectre of a recession.
The S&P 500 is down from its February record and on track for a sixth week of losses in the past seven.
Technology megacaps including Nvidia, Tesla and Apple slumped. US-listed Chinese stocks like Alibaba and Baidu also tumbled.
A gauge of big banks hit the lowest since August 7th, with Morgan Stanley, Goldman Sachs Group and Citigroup down more than 6 per cent. – Additional reporting: Reuters, Bloomberg
