US And European Stocks Slide On Tariff And Growth Worries

US stocks fell and European equities mostly slid on Thursday as investors fret over the impact of tariffs on inflation and growth

London, (UrduPoint / Pakistan Point News - 7th Mar, 2025) US stocks fell and European equities mostly slid on Thursday as investors fret over the impact of tariffs on inflation and growth.

Frankfurt was an exception, as plans for a massive German defence and infrastructure investment programme stoke optimism for pulling the eurozone's largest economy out of recession.

France and other eurozone markets trimmed their losses after the European Central Bank followed through with an expected quarter-point cut in interest rates.

But ECB President Christine Lagarde said that rising trade tensions could knock eurozone economic growth.

"We have risks all over and uncertainty all over," Lagarde added.

The ECB cut its growth forecasts for this year and the next while raising its 2025 inflation estimate.

The United States has slapped 25 percent tariffs on most imports from Canada and Mexico, and two 10 percent hikes on China.

President Donald Trump has also warned he will impose levies on the European Union and reciprocal tariffs worldwide.

Wall Street's main indices opened sharply lower, after having bounced higher Wednesday after the Trump administration delayed tariffs on cars and auto parts imported from Canada and Mexico for one month.

The blue-chip Dow opened around one percent lower and the tech-heavy Nasdaq Composite fell by nearly two percent.

"Tariff confusion is garnering a good chunk of the blame for the negative disposition," said Briefing.com analyst Patrick O'Hare.

"Underlying concerns about economic growth and earnings growth continue to fester and have tempered the market's buy-the-dip conviction," he added.

While data including a dip in first-time claims for unemployment benefits were positive, "it wasn't so positive to completely reverse the tone of the" market, said O'Hare.

Meanwhile, bond yields continued to climb, and the rise extended to Asia, with Japanese 10-year yields hitting 1.5 percent for the first time in more than a decade.

The increase signals expectations of higher inflation and that governments, companies and consumers will need to pay more to borrow.

- Asia rises -

Wednesday's announcement of the tariff delay buoyed Asian stock markets, in particular lifting the auto sector.

The tariff delay "helped reinforce hopes there may be some flexibility in the new administration's trade policy", noted AJ Bell investment director Russ Mould.

Chinese stocks responded well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People's Congress on Wednesday.

The meeting has heightened investors' expectations that a huge fiscal stimulus package could be coming.

China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds, and as an escalating trade war with the US hit exports.

- Key figures around 1430 GMT -

New York - Dow: DOWN 0.9 percent at 42,601.69 points

New York - S&P 500: DOWN 1.3 percent at 5766.04

New York - Nasdaq Composite: DOWN 1.9 percent at 18,207.41

London - FTSE 100: DOWN 1.1 percent at 8,661.44

Paris - CAC 40: DOWN 0.4 percent at 8,143.71

Frankfurt - DAX: UP 0.4 percent at 23,176.38

Tokyo - Nikkei 225: UP 0.8 percent at 37,704.93 (close)

Hong Kong - Hang Seng Index: UP 3.3 percent at 24,369.71 (close)

Shanghai - Composite: UP 1.2 percent at 3,381.10 (close)

Euro/dollar: UP at 1.0826 from 1.0790 on Wednesday

Pound/dollar: DOWN at $1.2885 from $1.2896

Dollar/yen: DOWN 147.64 from 148.89 yen

Euro/pound: UP at 84.03 pence from 83.67 pence

Brent North Sea Crude: UP 0.5 percent at $69.61 per barrel

West Texas Intermediate: UP 0.6 percent at $66.73 per barrel