European banking and mining stocks bore the brunt of the selloff in morning trading on Friday (4 April) as China announced 34% retaliatory tariffs on US imports, sparking fears of a global trade war.
UK banks Barclays (BARC), NatWest (NWG), Lloyds Banking Group (LLOY) were some of the biggest fallers – down 9.12%, 8.99% and 7.32% respectively on the day and global mining companies Glencore (GLEN) and Antofagasta (ANTO) down 9.74% and 8.13%.
China’s ministry of commerce said its tariffs’ move matches US president Donald Trump’s increase in duties imposed in Beijing.
Total levies on Chinese exports to the US are set to rise more than 60% after Trump’s latest announcement on ‘Liberation Day’.
It will start imposing tariffs on all imported goods from the US from 10 April 10, a day after the US tariffs come into effect.
Other fallers include global banking giant HSBC (HSBC) down 7.86% and Rolls Royce (RR) down 7.35%.
OIL PRICE DIVE
It was also not good news for the oil price which fell to its lowest level since August 2021 over the prospect of a global trade war.
US investment bank Goldman Sachs (GS:NYSE) reduced its December 2025 forecasts for global US benchmarks Brent crude and WTI by $5 to $66 and $62 a barrel respectively on 3 April citing ‘two key downside risks, namely tariff escalation and somewhat higher OPEC+ supply’.
RELENTESS SELL OFF
Russ Mould, investment director at AJ Bell said: ‘Unfortunately, the relentless selling continued, with markets falling across Asia and Europe and futures prices implying the US will do the same when trading begins later on.
‘There are so many moving parts that getting your head around the situation isn’t easy. With countless sectors set to be hit by tariffs, it’s difficult to know where to begin to comprehend the situation.
‘Investors looking to buy on the dip were spoiled for choice given the sharp declines seen on the market this week. It’s now a question of when investors feel brave enough to go shopping. Today’s extended sell-off implies investors are still too nervous to take the plunge.
‘Defensive stocks continued to buck the sell-off, with SSE (SSE), British American Tobacco (BATS) and Diageo (DGE) among the risers on the FTSE 100. You can see where people’s priorities lie – keeping the lights on, having a smoke and a pint of Guinness are simple pleasures when the world is falling apart.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Tom Sieber) own shares in AJ Bell.
