Market Turbulence Amid Economic Data and Tariffs

Markets faced uncertainty as investors anticipated crucial economic data amid concerns over U.S. tariffs. Key indicators like GDP and PCE inflation set the tone, while European and U.S. companies expressed caution. Oil prices tumbled as global trade anxieties mounted, reflecting broader economic pressures.

On Wednesday, financial markets struggled to find direction as investors braced for pivotal economic data releases amid heightened concern over the impact of U.S. President Donald Trump's tariffs. These upcoming figures are expected to shed light on recent corporate warnings.

The U.S. is set to disclose its advance first-quarter GDP report, anticipated to demonstrate a significant economic slowdown or contraction, as businesses pre-emptively increased imports to avoid tariff-induced costs. Tuesday's data already revealed a surge in the U.S. goods trade deficit, reaching record highs and prompting economists to revise their GDP forecasts downward.

In the European market, car manufacturers including Mercedes and Stellantis softened their profit projections due to tariff uncertainties, mirroring General Motors' cautious outlook. Despite these challenges, some indices showed resilience with hints of easing trade tensions, while weak oil prices pointed to declining trade activity and demand.

(With inputs from agencies.)