The FTSE MIB Index Closes 0.80% Lower

U.S. stocks extended their losing streak on Thursday, weighed down by renewed trade tensions and persistent market volatility. Equities struggled to find footing, with major indices slipping deeper into a sell-off that has now stretched over three weeks.

The S&P 500 fell over 1 percent, inching closer to official correction territory with a near 10 percent drop from its February peak. The Dow Jones Industrial Average slid 433 points, or 1.03 percent, marking its fourth consecutive day of losses, while the Nasdaq Composite dropped 1.8 percent as heavyweight stocks like Tesla and Apple tumbled 4.3 and 2.6 percent, respectively.

Also read: Forex reserves record biggest weekly gain since 2021

Trade anxieties escalated after former U.S. President Donald Trump threatened a 200 percent tariff on European alcoholic beverages, including wines and champagnes, in response to the EU’s recent 50 percent tariff on American whiskey. Trump’s comments, posted on Truth Social, sent ripples through the market, adding to investor unease about growing protectionism.

The uncertainty around U.S. trade policy has unsettled markets throughout the month, with this week’s losses intensifying. The S&P 500 and Nasdaq are poised to drop 3.4 percent and 3.8 percent, respectively, for the week, while the Dow is on track for a 3.9 percent decline, its worst weekly performance since March 2023.

Stocks continued their slide even as fresh inflation data offered some relief. February’s producer price index (PPI), a key gauge of inflationary pressures, was unchanged from the previous month, defying expectations of an increase. This followed a softer-than-expected consumer price index (CPI) reading earlier in the week, signalling a possible cooling of inflation.

Read more: Mumbai Police’s EOW may question RBI officials in the New India Cooperative Bank case

Yet, despite these figures, analysts remain cautious. Concerns over Trump’s trade policies continue to cast a shadow over investor sentiment, fueling doubts over the Federal Reserve’s next moves on interest rates.

With policy uncertainty and trade risks keeping investors on edge, markets remain vulnerable, and the path forward remains far from clear.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.

U.S. stocks extended their losing streak on Thursday, weighed down by renewed trade tensions and persistent market volatility. Equities struggled to find footing, with major indices slipping deeper into a sell-off that has now stretched over three weeks.

The S&P 500 fell over 1 percent, inching closer to official correction territory with a near 10 percent drop from its February peak. The Dow Jones Industrial Average slid 433 points, or 1.03 percent, marking its fourth consecutive day of losses, while the Nasdaq Composite dropped 1.8 percent as heavyweight stocks like Tesla and Apple tumbled 4.3 and 2.6 percent, respectively.

Also read: Forex reserves record biggest weekly gain since 2021

Trade anxieties escalated after former U.S. President Donald Trump threatened a 200 percent tariff on European alcoholic beverages, including wines and champagnes, in response to the EU’s recent 50 percent tariff on American whiskey. Trump’s comments, posted on Truth Social, sent ripples through the market, adding to investor unease about growing protectionism.

The uncertainty around U.S. trade policy has unsettled markets throughout the month, with this week’s losses intensifying. The S&P 500 and Nasdaq are poised to drop 3.4 percent and 3.8 percent, respectively, for the week, while the Dow is on track for a 3.9 percent decline, its worst weekly performance since March 2023.

Stocks continued their slide even as fresh inflation data offered some relief. February’s producer price index (PPI), a key gauge of inflationary pressures, was unchanged from the previous month, defying expectations of an increase. This followed a softer-than-expected consumer price index (CPI) reading earlier in the week, signalling a possible cooling of inflation.

Read more: Mumbai Police’s EOW may question RBI officials in the New India Cooperative Bank case

Yet, despite these figures, analysts remain cautious. Concerns over Trump’s trade policies continue to cast a shadow over investor sentiment, fueling doubts over the Federal Reserve’s next moves on interest rates.

With policy uncertainty and trade risks keeping investors on edge, markets remain vulnerable, and the path forward remains far from clear.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.

In Paris, the CAC 40 Index fell 47 points or 0.58 percent on Thursday.

Leading the losses are Pernod Ricard (-4.12%), STMicroelectronics (-2.97%) and Essilor (-2.56%).

Top gainers were Unibail Rodamco (2.76%), Teleperformance SE (2.54%) and Vivendi (1.82%).

Frankfurt's DAX closed 0.6% lower at 22,546 on Thursday, though it recovered from intraday lows, amid rising US-EU trade tensions.

President Trump threatened 200% tariffs on European alcoholic beverages after the EU imposed a 50% tariff on American whiskey in retaliation for previous US duties.

Geopolitical concerns also weighed on sentiment amid ongoing uncertainty over a potential ceasefire.

The Russian president backed a truce “under certain conditions” but insisted it must ensure lasting peace.

Earlier, Moscow had voiced skepticism about a ceasefire, viewing it only as a temporary advantage for Ukraine.

Locally, the German parliament continued discussions on potential debt brake reforms. In corporate news, Daimler Truck shares slumped amid fears that the US could ease emissions limits for trucks, potentially reducing demand for cleaner vehicles.

Hugo Boss targeted higher 2025 profits but remained uncertain on sales growth, while Hannover Re reported record earnings.

Frankfurt's DAX closed 0.6% lower at 22,546 on Thursday, though it recovered from intraday lows, amid rising US-EU trade tensions.

President Trump threatened 200% tariffs on European alcoholic beverages after the EU imposed a 50% tariff on American whiskey in retaliation for previous US duties.

Geopolitical concerns also weighed on sentiment amid ongoing uncertainty over a potential ceasefire.

The Russian president backed a truce “under certain conditions” but insisted it must ensure lasting peace.

Earlier, Moscow had voiced skepticism about a ceasefire, viewing it only as a temporary advantage for Ukraine.

Locally, the German parliament continued discussions on potential debt brake reforms. In corporate news, Daimler Truck shares slumped amid fears that the US could ease emissions limits for trucks, potentially reducing demand for cleaner vehicles.

Hugo Boss targeted higher 2025 profits but remained uncertain on sales growth, while Hannover Re reported record earnings.

German equities were back in the red on Thursday as the latest threat of US tariffs, this time on wine, champagne and other alcoholic beverages from the European Union, wiped out earlier gains.

Tracking a Europe-wide retreat, the blue-chip DAX index was 0.48% closer at closing.

In a social media post, US President Donald Trump threatened to impose a 200% tariff on "all wines, champagnes and alcoholic products coming out of France and other EU represented countries" as the bloc included US whiskey in its planned countermeasures. The EU earlier said its retaliatory tariffs would take full effect on April 13, though it "will always remain open to negotiations."

On the macroeconomic front, monthly industrial production in the euro area rose 0.8% in January, recovering from the revised 0.4% decline in the previous month and surpassing the expected 0.6% increase. Annually, the eurozone's industrial output was flat.

"The outlook for industrial production is shifting, but the question is when real relief is going to come," ING wrote. "Overall, the light at the end of the tunnel has become stronger, but the question of when the end will be reached remains as unclear as ever."

In corporate news, Daimler Truck Holding lost 4.44%, the index's worst-performing stock, after the US Environmental Protection Agency said it would consider the reversal of vehicle emissions rules put in place by the previous administration.

Hannover Re reported an annual increase in its net income and reinsurance revenue for 2024, allowing the group to increase its total dividend by 25%. For 2025, the German reinsurer is targeting a group net income of 2.4 billion euros. The stock was 0.70% higher at closing.