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Daily Highlights

US markets experience declines amid tariffs announcement 

Adriaan Pask, Chief Investment OfficerPSG Wealth

US markets experience declines amid tariffs announcement 

US markets experienced declines as the Dow Jones Industrial Average fell by over 3%, closing 40 952.59, while the S&P 500 reduced by 3.66% to close lower at 5 463.16 and the Nasdaq composite dropped 4.80% declining to 16 755.72. Wednesday’s tariffs announcement further exasperated market volatility, as investors showed concern about the potential economic repercussions of these trade policies on US businesses and consumers. 

European stock markets experienced declines on Thursday following the announcement of high tariffs by President Donald Trump. The Stoxx 50 index fell 3.70%, while the Stoxx 600 dropped 2.70%. Companies with extensive global supply chains bore the brunt of the impact, with Adidas shares tumbled by 11% and shipping giant Maersk losing 9.50%. Auto stocks also declined by 3.90% as the 25% tariffs on imported vehicles came into effect, compounding existing duties on steel and aluminium. Banking stocks also fell sharply by 5.60% and technology shares slid by 4.50%. In contrast, utility stocks, often considered a safer investment during market turbulence, rose by nearly 3%.  

The FTSE 100 index experienced a further decline, closing at 1.60% lower at 8 475. This level had not been seen since mid-January 2025. The drop was part of a broader global market downturn, triggered by the announcement of the new tariffs, which included the UK among the affected countries. The reciprocal tariffs included a 20% tax on imports from the EU and a 10% levy on goods from the UK. In response to these measures, European leaders issued warnings about potential retaliatory actions and encouraged businesses to reconsider their investments in the US.

Asian markets were also down on Thursday, following the tariffs announcement. The Nikkei closed 2.77% lower at 34.73 and the Hang Seng decreased by 1.61% to close at 22.82. The Yen, however, experienced a surge at 148.91 against the US dollar as investors sought safe-haven assets during the global economic uncertainty. China's long-term sovereign credit rating was downgraded from A+ to A by Fitch Ratings, marking the first change in 18 years. This decision reflects concerns over China's rising public debt during its economic transition, driven by high deficits and subdued GDP growth. Despite a weak domestic demand and rising tariffs, China's strong global trade position, substantial foreign exchange reserves and net creditor status support its financial stability at the new rating level.  

Investor sentiment in South Africa’s emerging markets remains volatile due to trade policy headwinds. At 19h27 SAST, the rand traded at 18.77 against the US dollar, strengthening by 1.03% and by 0.67% against the British pound to close at 24.58. However, it decreased against the Euro by 0.12% closing at 20.70.

Investor sentiment in commodities was mixed, with some seeking refuge in gold while others remain cautious about oil due to global economic uncertainty. Gold prices surged exceeding $3 160 per ounce, while Brent crude oil closed at $70.06 a barrel. 

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Market Indicators
DateIndexCurrent Level1 Day Move1 Month Move6 Month Move1 Year Move
Date2026-10-20T00:00:00IndexALSICurrent Level108994.981 Day Move-1.751 Month Move-2.886 Month Move-8.141 Year Move2.43
Date2026-10-20T00:00:00IndexBasic mineralsCurrent Level82101.101 Day Move-3.261 Month Move-8.376 Month Move-14.911 Year Move7.10
Date2026-10-20T00:00:00IndexFin + Ind 30Current Level12880.831 Day Move-1.021 Month Move-0.126 Month Move-4.511 Year Move0.14
Date2026-10-20T00:00:00IndexFinancialCurrent Level61275.501 Day Move-1.021 Month Move-1.266 Month Move-1.251 Year Move17.02
Date2026-10-20T00:00:00IndexIndustrial indexCurrent Level128725.951 Day Move-1.021 Month Move0.906 Month Move-7.881 Year Move-12.86

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