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Markets Update: Trump imposes 25% tariffs on all foreign auto imports. Gold hits a new record high above $3,059/oz. Global automakers decline; Tesla and Rivian rise. Dollar fluctuates; peso and loonie decline due to tariff worries.
Global Markets Roundup: 27 March 2025
Global markets retreated on Thursday after President Donald Trump intensified trade tensions by declaring 25% tariffs on all imported vehicles and foreign-made auto parts, scheduled to commence on April 3. This action provoked a global outcry and threats of retaliation, pushing gold to a new record high and putting pressure on major automakers in the U.S., Europe, and Asia.
Auto Stocks Hit, EV Makers Shine
The announcement triggered sharp declines in traditional automakers:
General Motors (GM) fell over 6%
Ford (F) dropped 3%
Stellantis (STLAM) lost 1%
In contrast, U.S.-based electric vehicle makers Tesla and Rivian rose, buoyed by their entirely domestic production.
Wall Street Mixed
Dow Jones Industrial Average: -120.77 points (-0.28%) to 42,333.38
S&P 500: -9.03 points (-0.17%) to 5,702.48
Nasdaq Composite: -41.37 points (-0.23%) to 17,857.20
Global Equities Weaken
MSCI World Index: -0.21% to 844.15
STOXX 600: -0.44% to a two-week low of 546.31
European carmakers were among the hardest hit:
Volkswagen: -1.26%
BMW: -2.55%
Mercedes-Benz: -2.69%
Dollar Mixed; Canada, Mexico Hit by Auto Tariffs
The dollar index DXY dipped 0.35% to 104.27, despite gains against the Canadian dollar (USDCAD +0.29%) and Mexican peso (USDMXN +0.98%), both of which are expected to take a hit from the new tariffs.
Euro EURUSD: +0.42% to $1.0797
USD/JPY: flat at 150.48
Treasury Yields Rise on Growth Data
10-year U.S. Treasury yield: +2.5 bps to 4.363%
7-year yield rose after a weak $44 billion auction
Data showed the U.S. economy expanded more than previously estimated in Q4, while unemployment claims remained low, underscoring resilience despite policy headwinds.
Gold Breaks Records, Crude Rises
Investors rushed to safe-haven gold, which climbed 1.19% to $3,055.33/oz, after touching an all-time high of $3,059.30. Goldman Sachs raised its gold price target to $3,300, citing ETF inflows and strong central bank demand.
Oil edged higher amid renewed trade war tensions:
WTI Crude: +0.39% to $69.92/bbl
Brent Crude: +0.33% to $74.03/bbl
Agricultural and Soft Commodities Mixed
Cocoa retreated after recent strength:
NY Cocoa (May): -0.81%
London Cocoa (May): -1.45%
Sugar dropped to 1½-week lows on improved Brazilian weather:
NY Sugar (#11 May): -1.34%
London Sugar (#5 May): -0.46%
Coffee softened as rainfall forecasts in Brazil eased supply fears:
Arabica: fell to lowest since Feb. 26
ICE Robusta (May): -1.43%
ICE Arabica (May): -1.23%
Cotton futures rose midday by 85 to 109 points, buoyed by supportive external markets.
Grains were mixed:
Wheat (CBOT): -3¼ cents to $5.32/bushel, lowest since Jan. 10
Corn: -1½ cents to $4.50/bushel, a three-week low
Soybeans: +15¾ cents to $10.16¾/bushel, highest since March 18
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team