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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. 

KST3 075c35c (1.15%)
Market Indicators
DateIndexCurrent Level1 Day Move1 Month Move6 Month Move1 Year Move
Date2026-10-13T00:00:00IndexALSICurrent Level108759.841 Day Move0.221 Month Move-4.776 Month Move-6.521 Year Move2.87
Date2026-10-13T00:00:00IndexBasic mineralsCurrent Level83501.651 Day Move-0.101 Month Move-10.456 Month Move-11.261 Year Move12.63
Date2026-10-13T00:00:00IndexFin + Ind 30Current Level12737.171 Day Move0.361 Month Move-1.676 Month Move-3.851 Year Move-1.47
Date2026-10-13T00:00:00IndexFinancialCurrent Level60447.741 Day Move0.601 Month Move-3.666 Month Move-1.351 Year Move14.68
Date2026-10-13T00:00:00IndexIndustrial indexCurrent Level127606.121 Day Move0.131 Month Move-0.206 Month Move-6.871 Year Move-14.05

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