📆 Wednesday, April 2
► European markets declined as investors awaited Trump’s tariff announcement, with healthcare stocks leading losses due to the U.S. Department of Health layoffs. The Stoxx 600 Index dropped 0.7%, with major declines seen in companies such as Bayer, GSK, AstraZeneca, and Sanofi. Mercedes-Benz Group declined after reports that the automaker may withdraw its least expensive cars from the US if tariffs render their sales unfeasible – while Mercedes is negatively impacted by this news, many other auto makers without US production would face similar problems. The decline across Europe was compounded by concerns that Trump’s tariff announcement could include reciprocal tariffs against key European industries such as automobiles, pharmaceuticals, and heavy manufacturing.
► U.S. markets remained cautious, ahead of Trump’s 4 p.m. (20:00 UTC) “Liberation Day” tariff announcement. We see S&P 500 futures trading 0.25% lower (Nasdaq 100 -0.35%). The uncertainty keeps investors at the side-lines, with many reducing risk exposure, particularly in industrials and healthcare stocks, which could be directly impacted by new tariffs. U.S. Treasury yields rose slightly to 4.17%, after falling to their lowest levels since early March yesterday.
► Asia-Pacific markets showed mixed performance, with Japan’s Nikkei rising 0.28%, supported by a weaker JPY and gains in tech stocks. China’s Shanghai Composite and Hong Kong’s Hang Seng Index traded flat, as tariff fears outweighed positive manufacturing data. Australia’s ASX 200 increased 0.12%, though gains were limited by weak industrial data.
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