Markets tumble as Trump announces tariffs

Markets fell sharply on Thursday.

The S&P 500 plunged 1.3 percent, the STOXX Europe 600 tumbled 1.3 percent and the Nikkei 225 dived 1.6 percent.

The sharp fall in the US stock market was widely attributed to President Donald Trump's announcement that he would impose tariffs on steel and aluminum imports, raising concerns of protectionism and trade wars.

However, sharp falls earlier in Europe and Asia indicate that market sentiment was still reeling from interest rate fears.

“There has been a real negative shift in market sentiment since the Jerome Powell testimony a couple of days ago. Suddenly not only three, but perhaps even four hikes need to be priced in by the market, and this is impacting across global markets,” said Hantec Markets analyst Richard Perry in a note.