Global Markets Rattled by Trade Tensions Amid Trump's Tariff Threats

Global equities and U.S. Treasury yields fell as trade tensions rose following President Trump's threat of 200% tariffs on European beverages. Inflation data was stagnant, diverging from falling producer prices and slightly rising consumer prices. Wall Street suffered losses, with the Dow, S&P 500, and Nasdaq down significantly.

Global equities and U.S. Treasury yields faced declines on Thursday due to heightened global trade tensions. President Donald Trump threatened to impose a 200% duty on European beverage imports if the European Union retains surcharges on U.S. whiskey. This threat followed Trump's increased tariffs on all U.S. steel and aluminum imports.

Thursday's data from the Labor Department's Bureau of Labor Statistics showed U.S. producer prices remained unchanged in February, counteracting Wednesday's slower-than-expected rise in consumer prices. Market forces would have favored the inflation data if not overshadowed by trade war worries, noted Tim Ghriskey of Ingalls & Snyder in New York. Attention remains focused on trade tensions.

In financial markets, the Dow Jones Industrial Average fell 399.18 points, while other indices, including the S&P 500 and the Nasdaq Composite, also saw significant declines. However, European stocks fared better due to supportive government spending and potential peace efforts between Ukraine and others, with the STOXX 600 index gaining over the year despite recent slides.

(With inputs from agencies.)