By Dow Jones Newswires Staff
Global markets traded lower with U.S. futures set to fall as investor confidence sours on signs of escalating trade tensions between the U.S and China.
U.S. President Trump has imposed restrictions on chip maker Nvidia's exports to China and his administration is set to examine whether critical minerals should face tariffs. The company said Tuesday that it expects to book an up to $5.5 billion charge due in its fiscal first quarter due to the restrictions, causing its shares to fall.
--European indexes fell at the open with semiconductor stocks tumbling. ASML Holding reported orders below analysts' projections and said Trump's erratic tariff policies were creating uncertainty for the industry. It traded down 6% while industry peers ASM International and BE Semiconductor Industries were both down over 3%.
--Europe's STOXX 600 index was down 1.3%, Germany's DAX was down 1.1% and London's FTSE 100 index was down 0.8%.
--U.S. Treasury yields were largely unchanged, showing further signs of stabilization after last week's turmoil. The two-year Treasury yield fell 3.5 basis points to 3.793% while the 10-year yield fell two basis points to 4.302%. The 30-year yield was down one basis point at 4.762%. Eurozone bond yields fell led by German Bund yields, while the 10-year Bund yield trades 5.5 basis points lower at 2.488%.
--In Asia technology stocks were the biggest fallers, causing the Japan's Nikkei and South Korea's Kospi to close down 1% and 1.2%, respectively. Stocks in mainland China closed mixed, with the Hong Kong's Hang Seng Index dropping 1.7% and the Hang Seng Tech Index sliding 3.3%.
--Futures for the S&P 500 traded down 1.3% and the Dow Jones Industrial Average was down 0.7% in early morning European trade.
--The dollar fell as investors question the U.S. exceptionalism and credibility as a reserve currency, Jefferies economist Mohit Kumar said in a note. The DXY dollar index fell 0.8% to 99.4290, the euro rose 0.9% to $1.1382 while the dollar fell 0.7% to 142.175 yen.
--Gold continued its upward price trend, with spot gold rising 2.3% to 3,312.40 an ounce. Meanwhile, Brent crude trades down 0.6% at $64.26 a barrel, while WTI fell 0.7% to $60.90 a barrel. The European benchmark price for natural gas, the Dutch futures contract TTF, was down 0.3% to 34.31 euros a megawatt hour.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
April 16, 2025 04:26 ET (08:26 GMT)
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