Part 2/7:
The recent downturn primarily stems from anxieties surrounding potential tariffs announced by President Trump, with a notable drop of 3.5% in the markets following the announcement. This episode marks one of the largest declines since the COVID crash, prompting comparisons against previous market behaviors in broader indices such as the FTSE Global Stock Market Index.
For U.S. investors, sharp contrasts appear when considering currency fluctuations, particularly with the British Pound appreciating against the dollar and thus amplifying some declines while simultaneously making dollar-priced assets cheaper for UK investors.