Global financial markets have been plunged into turmoil as Donald Trump’s escalating trade war knocked trillions of dollars off the value of the world’s biggest companies and heightened fears of a US recession.
The London stock market is open and shares are falling again.
The FTSE 100 index, which tracks blue-chip shares in London, has fallen by 59 points, or 0.7%, to 8,415 points.
That is its lowest level since 17 January, adding to Thursday’s 1.5% tumble.
City investors are gloomy again, having watched Wall Street rack up its biggest losses in five years yesterday.
Asian markets have posted further losses after opening on Friday, hours after US markets closed the day with some of their worst losses in five years, with tech stocks particularly hard hit.
Tokyo’s Nikkei index has fallen another 2.75%, putting it into a bear market - 20% off its peak last July. The broader Topix index has lost another 3.3% today, having lost 3.08% the previous day.
Chip-related shares were some of the worst performers on Friday, with Advantest and Tokyo Electron down 7% and 4%, respectively.
Australia’s S&P/ASX 200 index fell as much as 2% on Friday, to an eight-month low.
On Thursday, Wall Street’s tech-heavy Nasdaq Composite plunged 6%, while the retreat in the S&P 500 was its biggest in a day since 2020.
In Europe, the Paris and Frankfurt stock exchanges finished the day with losses of more than 3%.
Oil prices are down another 1% today, having plummeted more than 6% yesterday on concerns an economic downturn sparked by Trump’s trade policies would hit demand.
The US dollar is continuing to fall against a basket of major currencies today, adding to Thursday’s slide.
The US dollar index is down 0.3% today, slipping against the euro and the Japanese yen.
It has also dropped 0.8% to a six-month low against the Swiss franc.
The US currency is weakening because of fears that a trade war could lead to a recession, and expectations that the US Federal Reserve could cut interest rates to support growth.
The IMF managing director, Kristalina Georgieva, warned that Trump's tariffs represented a “significant risk” to the global economy and warned against retaliation, while world leaders from Brussels to Beijing rounded on the US president. China condemned “unilateral bullying” practices and the EU said it was drawing up countermeasures.
Trump insisted market turmoil was no issue – telling reporters “markets will boom”.
The agenda
• 8.30am BST: UN FAO food price index
• 9.30am BST: UK construction PMI for March
• 1.30pm BST: US non-farm payroll
• 16.25pm BST: Fed chair Jerome Powell speaks at the SABEW conference
We'll be tracking all the main events throughout the day … |
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