Daily Dose, EU

Tariffs Cause a 1% Drop in Stock Futures While the Dollar Rises – Europe Market Wrap

The Dollar rose and markets fell at the beginning of US tariffs, ushered in a trade war that threatens global economic development.

The Dollar index jumped as Trump announced tariffs on Canada, Mexico, and China, and warned that European taxes would follow. The Canadian Dollar dropped to its lowest level since 2003, as the Euro weakened.

Tariffs have a global impact. S&P 500 futures fell 1.4%, while US oil prices rose on concerns about supply disruptions. European auto shares plummeted, with Volkswagen and Stellantis losing more than 5%. A general shift away from riskier assets weighed on cryptocurrency.

Tariffs on imports from Canada and Mexico threaten to destabilise North America’s tightly integrated oil system, raising petrol costs for Americans. WTI rose 2.4%. Petrol futures in New York increased by much as 6.2% on predictions that refiners will face higher costs.