European stock markets crashed today morning to their lowest level in two months. The collapse came after a new round of aggressive tariffs announced by US President Donald Trump on Wednesday, April 2, escalated the global trade war and heightened fears of a slowing economy, Reuters reports, as quoted by IPN.
The STOXX 600 index fell 1.7%, while Germany's stock exchange recorded a 2.4% decline, the most significant among regional stock markets.
Futures prices on the New York Stock Exchange fell 3.1% as investors favored less risky assets such as bonds and gold. Oil prices fell about 3%.
The gold price hit a new all-time high this morning of 3 167.57 dollars an ounce. It has been one of the fastest rising commodities this year, recording its best first quarter since 1986.
Gold's ascent was fueled by significant central bank purchases, compounded by demand for safe-haven assets amid intensifying geopolitical and macroeconomic uncertainties.
Nike shares fell 6.5%, Adidas - 9% and Puma - 8.5%, as US tariffs also hit Vietnam, Indonesia and China, key markets for sourcing from sportswear makers.
Eurozone banks were down 3.1%, with traders increasingly confident that the ECB will cut interest rates again, despite the "global trade war" likely to fuel inflation.
Eurozone government bond yields were also declining on trade tensions. German 10-year government bond yields fell almost eight basis points to 2.648%, the lowest since early March, while two-year yields fell to 1.958%, the lowest since December 2024.
The only increases today were in shares of defense, food and real estate companies.
The White House leader on Wednesday, April 2, announced tariffs on every product entering the US. They will be charged at least 10%. For products from Moldova the duty will be 31%.
