Equity markets have reacted negatively to President Trump's new trade measures against Canada and potential actions against Europe, leading to a market downturn.
Trump's Trade Measures Against Canada
President Trump announced a 35% tariff on all imports from Canada effective August 1 in a letter sent late Thursday, also hinting at possible measures targeting Europe.
Stock and Commodity Market Reactions
The European STOXX 600 index fell by 0.7%, while S&P 500 and Nasdaq futures each declined around 0.6%. Gold prices increased by 0.6% to $3,342 per ounce, while Brent crude oil fell nearly 2% to $68.88 per barrel.
Dollar and Currency Responses
The U.S. dollar rose 0.3% to C$1.3695, as the Canadian dollar weakened in light of the new tariffs. The euro also dipped 0.1% to $1.1688, amidst speculation of potential EU countermeasures.
The escalation of trade conflict between the U.S. and Canada, along with possible actions against Europe, creates an unstable environment for markets and requires careful analysis of future economic implications.
