In European Equity Markets stocks finished Friday’s session sharply lower after President Donald Trump announced upcoming tariffs on steel and aluminum, raising fears of a potential trade war. The pan-European STOXX 600 extended losses throughout the session, closing down 2.06 percent. On the week, the STOXX 600 fell 3.68 percent. All sectors closed sharply lower with many finishing the session down over 2 percent, including basic resources, banks, autos and industrials. LafargeHolcim fell 7.5 percent, making it one of the worst performers on the STOXX 600. Company reported that a 3.8 billion Swiss franc ($4.04 billion) impairment charge contributed to a net loss of 3.13 billion Swiss francs for its fourth quarter.

In Currency Markets the Japanese yen jumped to a 16-month high against the dollar as investors sold the greenback as prospects of a trade war gripped currency markets after U.S. President Donald Trump announced hefty new tariffs on steel and aluminium imports. Bank of Japan governor Haruhiko Kuroda also surprised currency markets by saying the central bank would consider an exit from its ultra-easy monetary policy if it met its inflation target in the year ending in March 2020, helping the yen higher against the euro and sterling. The greenback was nearly 0.5 percent lower at 105.75 yen after touching 105.70 earlier, its lowest since Feb. 16. Against the euro and sterling, the yen was 0.3 and 0.5 percent higher respectively.

In Commodities Markets oil prices were set to post their first weekly fall in three weeks on Friday after news of U.S. plans to impose tariffs on steel and aluminum hit global equity markets and as U.S. crude inventories climbed. President Donald Trump said he would impose hefty tariffs to protect U.S. producers, risking retaliation from major trade partners such as China, Europe and Canada. Brent crude fell by 32 cents to $63.51 a barrel, while U.S. crude was down 30 cents at $60.69. Both contracts are set for weekly declines. Adding to pressure, U.S. crude stocks rose faster than expected last week, increasing by 3 million barrels compared with predictions for a gain of 2.1 million barrels.

In US Equity Markets the Dow fell more than 1 percent for a fourth straight day on Friday on mounting fears of a global trade war following President Donald Trump’s promise to impose import tariffs on steel and aluminum. All but eight of the 70 members of the broader S&P industrial index were lower, reflecting fears that the costs of their raw materials will rise along with barriers to their trade outside of the United States. The S&P 500 fell 0.63 percent to 2,660.9 and the Nasdaq Composite declined 0.49 percent to 7,145.05. J.C. Penney Co Inc shares fell 8.7 percent after the department store chain missed same store sales estimates.

In Bond Markets Germany’s 10-year government bond yield hit a five-week low on Friday, as an Italian election and a milestone in German coalition politics this Sunday together with worries about a global trade war boosted demand for safe-haven debt. Most euro zone bond yields were down 0-2 basis points. Germany’s benchmark 10-year Bund yield fell to as low as 0.606 percent, its lowest level since late January, before inching up to 0.639 percent. It has fallen almost 20 bps from more than two-year highs hit last month and is set for a fourth straight week of falls. Italy’s 10-year bond yield fell three bps to as low as 1.983 percent, its lowest level in 3 weeks.