Gold held firm after hitting a new record on Thursday. Oil prices picked up slightly amid simmering tensions in the crude-heavy Middle East, where Israel threatened to annex part of the Gaza Strip and Sudan’s army retook control of the presidential palace.
US stocks slumped on opening but eked out gains by day-end with all three major indexes closing higher after fluctuations.
Angelo Kourkafas of Edward Jones noted that there is “some hesitation” given the trade uncertainties ahead of Trump’s expected April 2 announcement on “reciprocal tariffs.”
However, Trump told reporters Friday that “there’ll be flexibility” in his plans.
At the close of trading, major European indices likewise had been through a tough day following some heavy falls in Asia.
London, Frankfurt and Paris all closed lower.
“Overall, stocks are sliding because of a lack of confidence,” said Kathleen Brooks, research director at XTB trading group.
“There is a confidence deficit around the world, which has been triggered by the unorthodox economic policies of Donald Trump.”
One of the worst-hit markets was the Istanbul stock exchange which lost 7.8% two days after an 8.7% hit provoked by street protests that erupted after the arrest of Istanbul mayor Ekrem Imamoglu – President Recep Tayyip Erdogan’s main political opponent.
Stock markets across the globe had already retreated on Thursday after the Federal Reserve painted a gloomier picture for the US economy in the near future, even if Fed boss Jerome Powell played down the impact of tariffs.
“While all the attention is on tariffs, another major negative supply shock is hitting the US economy: slowing immigration,” said Holger Schmieding, chief economist at Berenberg Bank.
“The US labour market depends heavily on immigrants, who have accounted for almost the entire rise in the labour force since the pandemic.”
The Bank of England and Bank of Japan this week have warned about economic uncertainty fuelled by Trump.
Shares in Hong Kong sank for a second day running after a blistering start to the year.
Chinese electric vehicle maker BYD dived more than 8% following a report that the European Commission was conducting a foreign subsidy investigation into its plant in Hungary.
British Airways-owner IAG retreated 2.8% after the airline warned that the temporary closure of Heathrow airport, its main hub, would significantly affect operations.
Europe’s busiest airport shut down early Friday after a fire at a nearby substation supplying power to the sprawling facility west of London.
Nike slid 5.5% on Friday after the athletic footwear and apparel giant reported lower quarterly revenue.
Unease about the outlook continues to push gold prices higher as investors seek a safe haven from the volatility.
“While much ink has been spilled linking the latest leg-up in the price over the last month to the US growth scare, it is notable that gold has historically had a mixed record around US recessions,” said Kieran Tompkins, senior climate and commodities economist at Capital Economics.
Key figures
New York – Dow: UP 0.1% at 41,985.35 points (close)
New York – S&P: UP 0.1% 5,667.56 (close)
New York – Nasdaq: UP 0.5% at 17,784.05 (close)
London – FTSE 100: DOWN 0.6% at 8,646.79 points (close)
Paris – CAC 40: DOWN 0.6% at 8,042.95 (close)
Frankfurt – DAX: DOWN 0.5% at 22,891.68 (close)
Tokyo – Nikkei 225: DOWN 0.2% at 37,677.06 (close)
Hong Kong – Hang Seng Index: DOWN 2.2% at 23,689.72 (close)
Shanghai – Composite: DOWN 1.3% at 3,364.83 (close)
Euro/dollar: DOWN at US$1.0815 from US$1.0856 on Thursday
Pound/dollar: DOWN at US$1.2918 from US$1.2967
Dollar/yen: UP at 149.36 yen from 148.76 yen
Euro/pound: FLAT at 83.72 pence from 83.72 pence
West Texas Intermediate: UP 0.3% at US$68.28 per barrel
Brent North Sea Crude: UP 0.2% at US$72.16 per barrel