There are no weapons that can stand up to the earthquake triggered today on global stock exchanges byUS tariffs of 25% come into force on imports from Mexico and Canada, plus an additional 10% on Chinese goods. The president Donald Trump has taken action in the widely announced trade war and on April 2nd will introduce “reciprocal duties” that will also reach Europe. The retaliation of the affected countries was immediate and the reaction of the markets to all this was more than negative, risk aversion continued to grow as the hours passed, up to a Europe in deep red and a Off-key start on Wall Street. US indices have now completely burned away the gains made since Trump's election, sending a total of $3.400 trillion up in smoke.
Read EVEN Stock Market Today March 4 Live
Europe in a nosedive and Milan in the black jersey with Stellantis
Square Business today it is in black, losing 3,41% and falling below 38 thousand basis points (37.736). The most affected stocks are those linked to countries on which the new customs duties have been triggered: Stellantis -10,16% Iveco -7,73% stm -8,37%.
All continental stocks are moving away from recent highs. Frankfurt, which yesterday updated its record, today leaves 3,32% on the field, followed by Madrid -2,68% Paris -1,85% Amsterdam -1,76% London -1,2%.
Nasdaq in correction
Il Nasdaq (-1,69%) loses 10% from the all-time high reached on December 16, entering what is defined as correction territory. Among the stocks weighing down the list there is Tesla (-6,4%), after the 49,2% collapse in February of sales of electric vehicles produced in China.
Now, according to traders, the Fed will be forced into three rate cuts of interest by a quarter of a point this year, to counter the impact of tariffs on global economic growth.
Moscow bucking the trend
Dance alone instead Moscow (Moex +2,9%; Rtsi +2,91%), driven by press rumours regarding a possible loosening with US sanctions against Russia. Meanwhile, Washington is suspending military aid to Kiev (with Zelensky instead trying to restore a relationship), while consolidating dialogue with Putin on other hot fronts. According to Bloomberg Indeed, Russia has reportedly agreed to assist the White House in communicating with Iran on issues such as the Islamic Republic's nuclear program and its support for anti-US regional proxies.
Von der Leyen, Rearm Europe can mobilize up to 800 billion euros
In this context theEurope awakens and tries to deal with the situation as best she can. In view of the new extraordinary summit scheduled for the day after tomorrow, the EU President Ursula Von der Leyen he laid down the continent's rearmament plan, explaining that “Europe could mobilize nearly 800 billion euros in defense spending.” However, discontent is already spreading among member countries.
Thursday is expected ECB meeting, which should cut rates by another quarter of a point.
Oil down
The storm on the stock market is also being completed today by the decline in oil, which lost ground after OPEC countries said they would go ahead with increasing production in April.
Thus, Brent fell by 1,77% to $70,35 a barrel and WTI lost 1,35% to a price of $67,45 a barrel.
THEgold becomes more attractive in this context and spot gold is now trading above 2.900 euros (currently 2.906,62).
On the foreign exchange market, the currencies of Canada and Mexico are feeling the pinch from the tariffs, while theeuro it stays in tune for a change against dollar over 1,052.
Among digital currencies, the value of the bitcoin and, after the surge of the last few days, is currently trading at 82.775 dollars (-3,95%).
Piazza Affari, cars, oil companies and banks in the red
In Business Square the damage count starts from Stellantis, also hit by a 14,7% drop in registrations in Italy in February and by the cut in the target price of the stock from 13 to 12 euros (neutral) by Citi. The auto sector is however among the most affected in Europe by the duties on Mexico and Canada. According to Bloomberg in fact the trade war risks wiping out 5,88 billion dollars of operating profits for the major European manufacturers and the most affected companies would be Stellantis and Volkswagen (-2,58% in Frankfurt) if no mitigation measures are implemented.
The prospect is also a burden Iveco e Pirelli -6,01%, while stm appears more fearful of tariffs on Chinese goods.
A session to forget for oil stocks: Tenaris -5,97% Saipem -5,11% Eni -4,23%.
Back off hard Telecom, -5,37%, after that Vivendi has filed an appeal for the ruling of the Civil Court of Milan, which in January rejected the appeal against the decision of the board of directors to sell the fixed network without going through the shareholders' meeting.
Prysmian, -5,09%, suffers from the fact that Jefferies has lowered the target price from 80 to 75 euros (buy).
Banks are in reverse, after yesterday's advance, starting from Bper -4,62% and Pop from Sondrio -4,6%. Bad day also for Unicredit -4,25%, after the away match in Rome on the eve.
Few blue chips are saved from this Caporetto. It opens with Inwit, +2,12%, pending the presentation of the accounts and the new industrial plan.
You save Campari, +1,35% which is presenting the results just after the close of trading.
I'm on the rise utility, securities considered defensive and that see further rate cuts by the ECB as an additional opportunity to be attractive and competitive compared to bonds. The announcement of a 100 billion fund for decarbonization has also given support to the sector: Snam + 1,98% Terna + 1,4% Italgas + 0,81% A2a + 0,37%.
Leonardo today it gives in to profit taking after yesterday's double-digit jump and loses 2,86%.
Spread rising
The secondary market also closes in red, where the spread between ten-year BTPs and Bunds of the same duration rises to 108 basis points, while rates appear relatively stable, at 3,56% and 2,49%.
