Global equities faced a sharp sell-off this week as investors navigated renewed trade tensions, United States (U.S.) fiscal concerns, and mixed economic signals, according to Cordros Research.
Confiance News gathered from the weekly economic and market report of Cordros Research on Friday.
Cordros Research is a division of Cordros Capital Limited, a financial services group based in Lagos, Nigeria, which provides deep insights and analysis for clients in equity, fixed income, currency, and money markets.
U.S. markets led the decline, with the Dow Jones Industrial Average (DJIA) falling 2.5% and the S&P 500 dropping 2.9%, marking their worst weekly performance since April 18. The downturn was fueled by fears that a proposed U.S. fiscal bill, combining tax cuts with increased defense spending, could widen the federal deficit.
Market sentiment worsened after President Trump threatened a 50% tariff on European Union goods starting June 1 and a 25% tariff on iPhones manufactured outside the U.S.
European markets also faltered, with the STOXX Europe 600 down 0.8%, despite a slight 0.3% gain in the FTSE 100. Early optimism from robust corporate earnings was overshadowed by escalating global trade risks.
In Asia, the Nikkei 225 fell 1.6% and China’s SSE dipped 0.6%, driven by concerns over the U.S. fiscal outlook and Japan’s slowing export growth amid rising tariffs. The MSCI Emerging Markets index edged 0.6% lower, reflecting China’s losses, while the MSCI Frontier Markets index rose 1.9%, bolstered by strong performances in Vietnam (+0.9%) and Romania (+5.0%).
Cordros Research attributes the risk-off sentiment to “persistent uncertainty over trade negotiations and heightened concerns about the U.S. fiscal outlook,” noting that mixed economic data and corporate earnings further unsettled investors.
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