NEW YORK: Global stock markets showed resilience on Wednesday, with the Nasdaq Composite Index climbing to a fresh record high despite escalating tariff threats from former US President Donald Trump.
European markets also closed higher, signaling investor confidence amid trade uncertainties.
Trump intensified his tariff campaign this week, targeting seven additional countries with warning letters and proposing a steep 50 percent levy on Brazil.
The move was linked to Brazil’s legal actions against former President Jair Bolsonaro over alleged election interference. Earlier in the week, Trump also threatened tariffs on Japan, South Korea, copper imports, and pharmaceuticals, sending copper prices to a record high.
Despite the aggressive trade rhetoric, market reactions remained muted. Kathleen Brooks, research director at XTB, noted, “The market is not taking Trump at his word when it comes to tariffs, and the market impact has been limited so far.” The Nasdaq surged nearly 1 percent, while AI giant Nvidia briefly touched a $4 trillion market valuation before retreating slightly.
European markets mirrored the positive trend, with Germany’s Dax and France’s CAC 40 both gaining 1.4 percent. London’s FTSE 100 saw a modest 0.2 percent rise. Analysts suggested investors are treating Trump’s tariff threats as negotiation tactics rather than imminent policy shifts.
However, IG’s Chris Beauchamp cautioned that Trump’s preference for prolonged dealmaking over swift resolutions could introduce volatility. “Reports suggesting that Trump relishes the actual dealmaking process more than an actual resolution seem to suggest that a further delay to tariffs will be forthcoming, although this is an approach fraught with risk,“ he said.
Asian markets were mixed, with Tokyo’s Nikkei 225 edging up 0.3 percent, while Hong Kong and Shanghai posted losses. – AFP
**Key market figures as of 2130 GMT:**
New York – Dow: UP 0.5 percent at 44,458.30 (close)
New York – S&P 500: UP 0.6 percent at 6,263.26 (close)
New York – Nasdaq Composite: UP 0.9 percent at 20,611.34 (close)
London – FTSE 100: UP 0.2 percent at 8,867.02 (close)
Paris – CAC 40: UP 1.4 percent at 7,878.46 (close)
Frankfurt – DAX: UP 1.4 percent at 24,549.56 (close)
Tokyo – Nikkei 225: UP 0.3 percent at 39,821.28 (close)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 23,892.32 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,493.05 (close)
