Euronews Business takes a look at how European and global markets are performing on Wednesday, amid escalating trade tensions and talks on Ukraine.
ADVERTISEMENTEuropean markets inched higher on Wednesday morning as increased optimism over a possible ceasefire in Russia’s war in Ukraine boosted investor sentiment.
Britain’s FTSE 100 rose by around 0.4% on Wednesday afternoon, while Germany’s DAX index edged up 1.7%. France’s CAC 40 index also increased 1.2% on Wednesday morning, whereas the STOXX 600 advanced 1.1%.
The moves followed talks between Ukraine and the US in Saudi Arabia on Tuesday, which led to Ukraine agreeing to implement a 30-day ceasefire. If Russia agrees to the deal, the pause in fighting would be effective immediately. The US also revealed that it would resume its intelligence sharing with Ukraine and restart sending military aid to the country.
Investor anxiety around global tariffs persisted after US president Donald Trump’s 25% tariffs on steel and aluminium imports came into effect on Wednesday. The European Commission reacted almost immediately, saying that it would be implementing counter tariffs on €26bn worth of US goods, starting next month. Trump also made headlines on Tuesday when he threatened to double US tariffs on Canadian steel and metal imports to 50%, although he quickly retracted the proposal.
“After Trump’s latest round of impulsive tariff threats rattled markets again yesterday, European stocks are rebounding this morning following news of a ceasefire proposal in Ukraine. The dollar has lifted from a four-month low ahead of what is likely to be another sticky US inflation report today,” said Kyle Chapman, FX markets analyst at Ballinger Group.
Asia-Pacific markets overnight
Asian-Pacific stocks continued to lag overnight as investors showed concern over the impact of Trump’s latest metal tariffs on major economies in the region.
Japan’s benchmark Nikkei 225 closed around 0.1% higher on Wednesday at 36,819.09 -but was still hovering near six-month lows.
China’s Shanghai Composite Index dropped roughly 0.2%, closing at 3,371.92 on Wednesday, following a flurry of profit-taking as investors rushed to cash in on gains amid mounting economic uncertainty. The Chinese government has recently revealed plans to boost the country’s economy by focusing on its tech sector.
Hong Kong’s Hang Seng index also closed 0.8% lower on Wednesday, at 23,600.31.
Australia’s S&P/ASX 200 dropped 1.3% to 7,786.2 on Wednesday, while South Korea’s Kospi was up 1.5% to 2,574.82.
US markets open
US markets started the day on an optimistic note, with the S&P 500 opening 0.2% higher on Wednesday. However, concerns over corporate profits mounted amid increasingly aggressive US tariffs.
“Donald Trump keeps moving the goal post and investors are getting fed up. Trump is essentially sticking with the same message: tariffs make goods imported into the US more expensive and that will drive Americans to buy more goods domestically,” Russ Mould, investment director at AJ Bell, said.
Several critics believe that tariffs will ultimately increase prices for US businesses and customers, Mould added, which would end up negatively impacting the economy.
“It’s no wonder share prices have been bobbing up and down faster than a boat in a storm. We could be looking at one of the biggest years in a long time for corporate profit warnings. The next results season will be littered with uncertain outlook statements, and that’s all down to a president who has only been in office for seven weeks,” he continued.
The tech-heavy Nasdaq 100 was up 1.24% on Wednesday morning while the Dow Jones Industrial Average Index slipped 0.25%.
ADVERTISEMENTThe markets are also reacting to US inflation data out on Wednesday, which showed prices increasing more than expected, by 2.8% year-on-year in February. That’s compared to January’s reading of 3%.
Commodities and currencies
In commodities, US crude oil was up 1.7% to $67.4 per barrel on Wednesday afternoon, whereas Brent crude oil increased 1.5% to $70.6 per barrel.
Meanwhile, gold was trading mostly flat at $2,915.7 (€2,675.9) per ounce on Wednesday morning, trading near record highs, boosted by a surge in safe haven demand.
The EUR/USD pair was done around 0.2% on Wednesday afternoon, with the EUR/GBP pair slipping roughly 0.1%.
ADVERTISEMENTCompany earnings today
In corporate updates, carmaker Porsche’s share price slid 2% in Frankfurt on Wednesday afternoon. This came after the firm released its full year 2024 earnings, warning of the risk of higher costs and lower sales to its outlook. Porsche reported group sales revenue of €40.1 billion, as well as a group operating profit of €5.6bn.
Sportswear company Puma’s shares plummeted 21.7% on the Frankfurt Stock Exchange on Wednesday afternoon, after the company announced its second profit outlook in less than two months, amid weakening demand in China and the US. The company reported sales of €8.8m in 2024, which was a rise of 4.4%. Earnings before interest and taxes (EBIT) stayed mostly flat at €622m.