By Adam Whittaker

Global stock markets fell again Friday as European equities followed Asian markets lower with President Trump's worse-than-expected tariffs continuing to pound global markets and increasing fears of a global slowdown.

In early trade, European finance stocks led the losers, mirroring moves of Asian peers. Oil-and-gas companies also fell on fears of a global recession that damped oil demand, coupled with OPEC+'s planned increase in supply.

This followed the worst day on Wall Street since 2020, with Thursday's plunge slashing more than $3 trillion from the market value of U.S. stocks.

In Europe, Italy's FTSE MIB was the steepest faller, trading down 3.3%. Switzerland's SMI and Germany's DAX fell around 2% while France's CAC 40 was down 1.5%. and the U.K.'s FTSE 100 was down 1.3%.

The Euro Stoxx Banks Index--which tracks European finance stocks--dropped 6%. Asia-exposed banks also sustained heavy losses for a second day with the U.K.'s Standard Chartered and HSBC trading down around 4%.

It was a mixed picture for European luxury stocks, which recorded some of the heaviest losses Thursday. While LVMH and Kering traded in the green, Prada was down 4.6%. Switzerland's Richemont and Swatch Group both traded down just under 3%, as the country's 31% tariff clouded their prospects.

U.S. futures for the S&P 500 and the Dow Jones Industrial Average declined 0.65%.

The U.S. dollar remained weak. "The erratic nature of U.S. trade policy undermined investor confidence," sparking fears of a reallocation of capital away from the U.S., IG analysts said in a note. The DXY dollar index fell 0.2% to 101.915, having hit a low of 101.267 on Thursday.

Gold traded down 0.3% at $3,112.00 an ounce but analysts expect it to remain near historical highs on safe-haven demand and as a hedge against market volatility.

Oil prices headed for a weekly loss of more than 5% as inflationary fears and slowing global economic growth drag on prices. A potential glut of oversupply from OPEC+ members has further exacerbated the price environment.

Brent crude is down 2.3% at $68.51 a barrel while WTI is down 2.4% to $65.32 a barrel

Eurozone government-bond yields follow U.S. Treasurys lower as investors continue to seek safer assets. The 10-year U.S. Treasury yield trades around 7 basis points lower at 3.985%.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

April 04, 2025 04:56 ET (08:56 GMT)

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