Global Markets Brace for Trump's Tariff Blitz: Economic Fallout Looms

Global stock markets reacted nervously to President Trump's impending tariff plans, with the STOXX 600 index dropping over 1%. Investors are cautious about a growing trade war's economic impact, while gold prices remain near record highs as a safe haven amid global uncertainty.

Global stock markets engaged in a tense standoff as investors awaited details of U.S. President Donald Trump's new tariff plans. With fears of an escalating trade war, safe-haven gold held close to record highs, reflecting the market's volatility and uncertainty.

The European STOXX 600 index, sensitive to U.S. tariffs, fell by over 1%, led largely by declines in the pharmaceutical sector. Meanwhile, various volatility measures in the market surged, indicative of investor apprehension over potential economic fallout from new tariffs.

On Wall Street, while the S&P 500 and Nasdaq slightly recovered, futures suggest a soft trading start. Investors are seeking clarity, but tariffs have already dampened business sentiment, potentially reducing global economic activity in the near future.

(With inputs from agencies.)