Pakistan stocks slide as global markets react to U.S. tariff orders

Pakistan's stock market mirrored the trend in global markets Monday, reacting negatively to news that U.S. President Donald Trump had ordered sweeping tariffs on goods from Mexico, Canada, and China.

The announcement created a ripple effect in international markets, and the local market followed suit.

The KSE-100 index opened the day under pressure and quickly descended. Despite a brief recovery, the market was unable to sustain any positive momentum.

Investor sentiment was largely influenced by growing concerns over escalating trade tensions and the potential impact on global economic stability.

Consequently, the index recorded significant losses across various sectors, reflecting the international market's downturn.

KSE-100 index shed 1.32% or 1,510.72 points to close at 112,745.01 points.

Indian shares fell on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico, and China, raising concerns of a broader trade war. Asian and European stock markets also declined, fearing a global economic slowdown.

Analysts warn the tariffs could disrupt global trade, slowing economic growth and unsettling markets. In India, capex-driven sectors are losing momentum while consumption-linked segments are expected to gain.

BSE-100 index shed 0.63% or 154.35 points to close at 24,488.46 points.

DFM General Index gained 0.05% or 2.39 points to close at 5,182.76 points.

Commodities

Oil prices increased on Monday due to US President Donald Trump’s decision to impose tariffs and the uncertainty around the global oil market before the OPEC+ meeting. Trump's tariffs on Canada and Mexico, two major oil suppliers, raised supply concerns.

On Saturday, Trump signed an executive order imposing a 25% tariff on imports from Canada and Mexico, effective Tuesday. Additionally, a 10% tariff will apply to energy resources from Canada, and a 10% tariff will be placed on Chinese imports.

Brent crude prices surged 1.51% to $76.81 per barrel.

Gold prices went up on Monday. The precious metal is still close to its highest level reached on Friday and is getting support because people are worried about the economic impact of US President Donald Trump's trade tariffs.

These worries, along with fears of a trade war, are making investors avoid riskier investments and favor gold instead.

International gold prices increased 0.04% reaching $2,799.74 per ounce.

Currency

US dollar steadied against PKR in the inter-bank market. Pakistani currency shed 9 paisas to 279.04. In the open market USD was trading at PKR 281.