How Markets Are Reacting to Trump Tariffs: Mexican Peso, Car Stocks Fall

Global car stocks sold disconnected and Mexico's currency weakened, aft President Trump deed Mexico, Canada and China with tariffs, prompting retaliation from Beijing and Ottawa. In caller trading:

European indexes dropped, aft a defense-led rally Monday. Germany's DAX, which features immoderate of the continent's biggest car makers, fell arsenic overmuch arsenic 2%, arsenic did Italy's FTSE MIB.

European car stocks sank, including Stellantis, Volkswagen and Volvo. Asian peers specified arsenic Toyota and Hyundai besides retreated.

U.S. banal futures were muted. The Dow industrials, S&P 500 and Nasdaq Composite had each fallen astatine slightest 1.5% Monday, aft Trump said helium would travel done with tariffs.

Wall Street's fearfulness gauge, the VIX, edged higher. The volatility scale had closed astatine its highest level of this year connected Monday.

Mexico's peso weakened, nearing 21 to the dollar. It hasn't ended the time beyond that level since March 2022. The Canadian dollar and offshore Chinese yuan rallied, aft selling disconnected Monday.

Illumina shares fell astir 4% premarket. Beijing is banning the U.S. biotech from exporting cistron sequencers to China.

Japan's Nikkei 225 fell 1.2%, but indexes successful China were small changed. Hong Kong's Hang Seng Index slipped; the Shanghai Composite edged higher.