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Thursday's global markets were volatile as investor mood was affected by dismal earnings announcements and new trade uncertainty. As a result of worries about inflation and economic growth, the FTSE 100 and other major US stock indices fell.

FTSE 100 Ends Lower

Losses across important industries caused the FTSE 100 (FTSE) to close 0.7% down. Companies that announced earnings that did not excite investors were among the largest losers:

  • Melrose (MRO.L) – Dropped by more than 14%
  • Rentokil (RTO.L)

When automakers rallied on promises of tariff relief, Germany's DAX (GDAXI) first rose 1.4% before closing with a small 0.6% gain. The pan-European STOXX 600 (STOXX) was unchanged, while France's CAC 40 (FCHI) fell 0.4% following early advances.

US Markets Struggle

Wall Street experienced a severe decline on the other side of the Atlantic. Key stock indices saw major drops:

  • S&P 500 (GSPC) – Dropped 1.5%
  • Dow Jones Industrial Average (DJI) – Fell more than 500 points (1.2%)
  • Nasdaq Composite (IXIC) – Took the brunt of losses, falling 1.8%

Market sentiment suffered after earnings reports from:

  • Marvell (MRVL)
  • Macy's (M)

Currency Fluctuations and Tariff Uncertainty

Market fears were exacerbated by events about tariffs. A temporary exemption for automakers from a 25% import tax levied on Canada and Mexico was announced by US President Donald Trump. However, uncertainty remains as the policy could change at any time.

The changes were reflected in currency markets:

  • The pound (GBP/USD) momentarily crossed over the $1.29 barrier.
  • The US Dollar Index (DX-Y.NYB) fell 0.4%.

Decision on ECB Interest Rates

To combat decreasing inflation, the European Central Bank (ECB) reduced its key deposit rate to 2.5%. Expectations of additional policy changes were strengthened by recent statistics showing that eurozone inflation eased to 2.4% in February.

Prospects for the Market

Investors continue to exercise caution due to persistent economic uncertainty. In the upcoming weeks, market moves will probably be influenced by a combination of disappointing corporate profits, changing trade policies, and monetary policy modifications. Traders will be attentively observing key economic data and central bank moves.

Navigating Market Volatility with KQ Markets

As global markets react to economic data, earnings reports, and geopolitical developments, traders must stay informed to manage risk effectively. Volatility in indices, currency fluctuations, and policy decisions create both challenges and opportunities for investors.

At KQ Markets, we provide expert insights and in-depth analysis to help traders navigate complex market conditions. Whether you trade indices, forex, or commodities, staying ahead of key trends is crucial for making well-informed investment decisions.

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