Financial Markets Decline Amid Escalating Trade Tensions and Oil Pressures
U.S. stock indices fell at the close of Tuesday’s trading as concerns over global trade tensions escalated following the implementation of tariffs on Canada
and Mexico and the imposition of an additional 10% tariff on Chinese goods.
Topic
Indices Performance
The Dow Jones dropped by 1.55% or 670 points, closing at 42,520 points,
while the S&P 500 declined 1.2% or 71 points to 5,778 points.
The Nasdaq also fell by 0.35% or 65 points, reaching 18,285 points.
In Europe, the Stoxx Europe 600 index declined by 2.15% to 551 points, weighed down by losses in energy,
automotive, and technology stocks. Meanwhile,
Germany’s DAX index recorded the biggest drop, plummeting 3.55% to 22,326 points.
Currency Market
In the currency market, the U.S. dollar index fell to its lowest level in three months
at 105.90 points following President Donald Trump’s announcement of new tariffs.
The euro gained 1% to $1.0594, while the British pound rose 0.6% to $1.2779. Meanwhile,
the U.S. dollar weakened against the Japanese yen, declining 0.25% to 149.10 yen.
Oil Market Outlook
Goldman Sachs projected that the Brent crude oil price would average between $73 and $78 per barrel in 2025 and 2026.
However, the bank highlighted potential downside risks,
particularly after OPEC+ announced plans to increase production starting April next year.
The bank also noted that higher oil production could push prices lower,
with Brent crude potentially reaching the $60-$65 per barrel range by the end
of 2026 if OPEC+ executes its supply expansion plan over an 18-month period.
Financial Markets Decline Amid Escalating Trade Tensions and Oil Pressures