investorsHD

inHD

Link copied

European Stocks Sink as Automakers Take Tariff Hit: Markets today.

stock :: 2025-03-27 :: source - bloomberg

By Anand Krishnamoorthy and Margaryta Kirakosian

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany. REUTERS/Staff/File Photo

(Bloomberg) -- European stocks fell as the US pushed ahead with harsh tariffs on automakers and threatened more sweeping trade levies, reinforcing investor concern about the hit to global economic growth.

Most Read from Bloomberg

The Stoxx 600 slid 1% at the open. Stellantis NV, which makes the Jeep Compass SUV in Mexico, sank about 6%, with similar losses in Mercedes-Benz Group AG and BMW AG. S&P 500 futures dipped, while 10-year Treasury yields edged higher.

The quickly shifting US trade sanctions on the nation’s allies and foes alike adds to already heightened market concerns about the impact on global trade and economic growth. On Wednesday, President Donald Trump announced plans to add a 25% tariff on auto imports and suggested further duties on the EU and Canada, expanding a trade war and triggering threats of retaliation.

“With investors linking tariffs to higher recession risks, any form of trade restriction may trigger an initial rush to the exit – what we’re seeing in today’s session,” said Jun Rong Yeap, a market strategist at IG Asia.

(Get the Markets Daily newsletter to learn what’s moving stocks, bonds, currencies and commodities.)

The dollar fell against all its Group-of-10 peers as Trump downplayed reciprocal tariffs. Gold rose toward its record high, trading near $3,035 an ounce on haven demand.

Meanwhile, the European Union is preparing for a massive round of tariffs set to target the bloc as soon as next week and among its retaliatory options is considering to deploy one of EU’s most powerful trade-policy tools, the so-called anti-coercion instrument. The EU has built a robust toolbox since Trump’s first term, partially in response to his policies, that it can unleash in response to the expected tariffs.

St. Louis Fed President Alberto Musalem said it’s not clear the impact of tariffs will prove temporary, and cautioned that secondary effects could prompt officials to hold interest rates steady for longer.

“While we consider material increases in US tariffs will weigh on the US economy, we do not predict a US recession,” said Carol Kong, a strategist at Commonwealth Bank of Australia. “That said, market participants may still price a higher risk of a US recession as more tariffs are announced” which will push up the dollar against major currencies, she said.

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 fell 1% as of 8:17 a.m. London time

  • S&P 500 futures were little changed

  • Nasdaq 100 futures fell 0.2%

  • Futures on the Dow Jones Industrial Average were little changed

  • The MSCI Asia Pacific Index fell 0.1%

  • The MSCI Emerging Markets Index fell 0.2%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0764

  • The Japanese yen was unchanged at 150.57 per dollar

  • The offshore yuan was little changed at 7.2731 per dollar

  • The British pound rose 0.2% to $1.2912

Cryptocurrencies

  • Bitcoin rose 0.1% to $87,396.28

  • Ether rose 0.6% to $2,022.29

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 4.36%

  • Germany’s 10-year yield declined four basis points to 2.76%

  • Britain’s 10-year yield was little changed at 4.72%

Commodities

  • Brent crude fell 0.5% to $73.63 a barrel

  • Spot gold rose 0.6% to $3,036.94 an ounce

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Winnie Hsu, Abhishek Vishnoi, Chiranjivi Chakraborty and Michael G. Wilson.

Most Read from Bloomberg Businessweek

This week top market trends.

Recent global market news

investorsHD Media

Subscribe to our handles,follow the news 24/7

investorsHD & partners uses cookie to ensure your best user experience,by continue using investorsHD,we assume that you have agreed with our cookie terms & policy , to have more privacy experience,simply switch your browser to privacy mode, Learn about cookie

×