Wall Street is in for a volatile day likely marred by deep losses, judging by the response of US futures to US President Donald Trump’s announcement of sweeping global tariffs. While Wall Street managed to end the day unscathed yesterday before Trump began his speech at Rose Garden, futures reversed earlier gains following the end of the speech, which saw him announce a new global order marked by a 10% tariff on all US imports, along with higher reciprocal tariffs on certain countries.

S&P 500 futures fell to a 3.6% loss, while Nasdaq futures were down 4.5% after gaining earlier on Wednesday, as companies like Nvidia, Amazon, and Apple saw their shares fall sharply in after-hours trading.

BTC also fell below USD 85k in response to the tariffs, as the announcement triggered a wide-ranging risk-off amid fears of a trade war and a US recession.

It’s far from over: Countries are widely expected to retaliate following the news, though some might also choose to negotiate with the US. Trump did suggest he would be willing to reduce tariffs if other nations remove trade barriers on US exports during his speech. The EU, however, and Canada, are already readying countermeasures set to be announced later today.

MARKETS THIS MORNING-

Asian markets also plunged in early trading, as the biggest victims of Trump’s’ trade war digest the news. Japan’s Nikkei and Topix led losses, both down more than 2%, paring losses of over 4% at open. Meanwhile, Hong Kong’s Hang Seng was down 1.2%, and mainland China’s CS 300 dipped 0.5%. South Korea’s Kospi also fell 1.3%

ADX

9,334

-0.4% (YTD: -0.9%)

DFM

5,112

+0.3% (YTD: -0.9%)

Nasdaq Dubai UAE20

4169

-0.5% (YTD: +0.1%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.3% o/n

4.2% 1 yr

TASI

12,025

+0.5% (YTD: -0.1%)

EGX30

32,026

+0.9% (YTD: +7.7%)

S&P 500

5,671

+0.7% (YTD: -3.6%)

FTSE 100

8,608

-0.3% (YTD: +5.3%)

Euro Stoxx 50

5,304

-0.3% (YTD: +8.3%)

Brent crude

USD 73.75

-1%

Natural gas (Nymex)

USD 4.06

+2.6%

Gold

USD 3,166

+0.6%

BTC

USD 84,394

-1% (YTD: -10.6%)

THE CLOSING BELL-

The ADX fell 0.4% yesterday on turnover of AED 1.1 bn. The index is down 0.9% YTD.

In the green: Fujairah Cement Industries (+14.7%), Gulf Medical Projects (+8.3%) and Ras Al Khaimah Co. for White Cement and Construction Materials (+5.4%).

In the red: Taqa (-10%), Hayah Ins. (-8.2%) and RAK Ceramics (-4.7%).

Over on the DFM, the index rose 0.3% on turnover of AED 659.5 mn. Meanwhile, Nasdaq Dubai closed down 0.5%.

CORPORATE ACTIONS-

#1- Shuaa Capital’s board approved plans to increase the investment firm’s capital by issuing 1.1 bn new shares at a price of AED 0.32 per share, according to a DFM disclosure (pdf). The capital increase will amount to AED 359.5 mn, equivalent to the amount of bonds it issued to investors and noteholders over two tranches last month.

#2- Takaful Emarat has been upgraded to the second category on the Dubai Financial Market after the company cut its accumulated losses to less than 50% of its capital in 2024, according to a DFM statement. The company turned to the black last year, with a net income of AED 11.2 mn, up from a net loss of AED 12.4 mn in 2023, according to its financials (pdf).

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