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2 reasons the Nikkei 225 index has crashed this year

The Nikkei 225 index has remained under pressure this year and continued to underperform its global peers like the German DAX and French CAC 40. It retreated to a low of ￥36,897 on Friday, its lowest level since September 19. It has fallen by almost 10% from its highest level this year. Here are the two main reasons why the Nikkei 225 index has plunged.

Bank of Japan hikes and Japan bond yields

The main reason why the Nikkei 225 index has crashed is that the Bank of Japan has become the most hawkish central bank in the market this year. It has hiked interest rates by 0.25%, and the recent inflation numbers point to further hikes ahead.

The BoJ’s actions differ from those of other central banks. For example, the European Central Bank (ECB) slashed interest rates for the fifth consecutive meeting and hinted that more hikes were coming.

The Federal Reserve has slashed rates three times and hinted that it would deliver two more this year. Analysts anticipate that the bank will cut rates three times as the US economy slows because of Donald Trump’s tariffs. 

The hawkish view of the BoJ has led to a sharp increase in Japanese government bond yields. The 10-year yield has jumped to 1.5% from minus 0.186% in 2020. Also, the five-year yield rose to 1.1% from minus 0.324% in 2020.

These numbers mean that many people in Japan have rotated from stocks to the bond market, where the yield has continued rising. This trend has led to higher inflows into Japan’s money market funds. 

Donald Trump’s tariffs

The Nikkei 225 index has crashed because of the ongoing trade war between the US and some of its allies. Trump has already implemented tariffs on Chinese, Mexican, and Canadian goods this year. 

He has also hinted that he will implement more on other top trading partners. One of his approaches will be to implement reciprocal tariffs on other countries. Japan may be affected because it still has a trade deficit with the US.

However, Japan may benefit from Trump’s reciprocal tariffs because it has low levies on the US. For example, Japan does not have any tariffs on imported cars, while the US has a 2.5% levy on passenger cars and 25% on light trucks.

Nonetheless, the ongoing trade war will impact the country since the company specializes on exports. These tariffs will have an impact on demand for its products.

Most Nikkei 225 index have retreated this year. Some of the top gainers are firms like Mervari, Bandai Namco, M3, LY, Sumitomo Pharma, Kawasaki Heavy, and Kobe Steel.

Nikkei 225 index analysis

Nikkei 225 index chart by TradingView

The daily chart shows that the Nikkei 225 index found a strong barrier at ￥40,000, where it failed to move above several times since September last year. It has now dropped below the key support at ￥37,795. 

The index has crashed below the 50-day and 100-day Weighted Exponential Moving Averages (WMA). Also, the Relative Strength Index (RSI) and the MACD indicators have pointed downwards.

Therefore, the index will likely continue falling as sellers target the psychological point at ￥36,000. A drop below that point will signal further downside to ￥35,216, its lowest level in September last year.

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FTSE MIB index analysis: here’s why Italian stocks are surging

Italian stocks are doing well this year, with the blue-chip FTSE MIB index surging to a record high. It has risen in the last six days and is trading at €39,000. It is up by 14% this year, beating its American counterparts like the Nasdaq 100 and S&P 500 indices that have pulled back and erased their year-to-date gains.

ECB interest rate cuts and spending

The FTSE MIB index, which tracks the biggest companies in Italy, has been in a strong rally this year. This surge has mirrored that of other European indices like CAC 40 and DAX index.

Most of these gains are mostly because of the ongoing monetary policy by the European Central Bank (ECB).

The ECB has delivered five interest rate cuts since last year. It continued its rate cuts this week, slashing them by 0.25%, and hinted that more cuts would happen if the economic growth remains under pressure.

Analysts anticipate more cuts later this year as the European economy prepares for Donald Trump’s tariffs. Trump has hinted that he will move ahead with a 25% tariff on European goods. Those tariffs would affect Italy, a country with a long trade relationship. The two countries do trade worth over $130 billion.

The ongoing ECB interest rate cuts have led to a retreat of Italian bond yields. Data shows that the short-term and long-term Italian bond yields have retreat in the past few months.

The FTSE MIB index has jumped because of the ongoing boost in spending by European governments. Just this week, German bond yields surged after the government hinted that it would boost defense spending.

Top Italian stocks performance

Most companies in the FTSE MIB index have surged this year. The most notable one was Leonardo, the biggest defense company in the country, has jumped by over 75% this year. Leonardo is a top company that focuses on aerospace, defence, and security. 

Its performance has surged as many European countries focus on boosting spending because of Donald Trump. 

IVECO Group, one of the biggest truck makers in Europe, has surged by 71% this year as demand jumped.  The most recent results showed that IVECO Group’s revenue stood at €15.3 billion, while the EBOT jumped to over €982 million. Its stock has also benefited from its defense business. 

Unicredit stock price has surged by 50% this year, as it fires on all cylinders. This surge has continued to woo Commerzbank, the second-biggest German bank.

The other top companies in the FTSE MIB index are Banco Pop Sondrio, Intensa Sanpaolo, Moncler, Mediobanca, Unipol, and Generali. 

On the other hand, the top laggards in the FTSE MIB index are firms like Saipem, Amplifon, Interpump Group, and Stellantis.

FTSE MIB index analysis

FTSE MIB chart by TradingView

The weekly chart shows that the FTSE MIB index has been in a strong bullish trend in the past few years. It has jumped from a low of €20,220 in 2022 to €38,780. 

The index recently moved above the key resistance level at €35,400, the upper side of the inverse head and shoulders chart pattern. It has remained above the 50-week and 100-week Exponential Moving Averages (EMA).

Further, the Relative Strength Index (RSI) and the MACD indicators have done well, pointing to more momentum. Therefore, with the FTSE MIB index moving into the overbought level, there is a likelihood that it will pull back and retest the support at €35,400. 

A break-and-retest pattern at €35,400 would be a bullish sign, raising the possibility that it will jump to the resistance at €40,000. 

The post FTSE MIB index analysis: here’s why Italian stocks are surging appeared first on Invezz

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Hang Seng index could go parabolic as a rare chart pattern nears

The Hang Seng index has surged this year and is beating some of its top global peers like the Dow Jones, Nasdaq 100, and S&P 500. It has jumped by over 22% in 2025 and is now hovering at its highest level since February 2022. It soared by over 68% from its lowest level in 2023. 

In contrast, American indices have suffered a big reversal, with the Dow Jones and S&P 500 indices erasing most of their gains earlier this year. 

Hang Seng index ignores the tariff wars

The Hang Seng and other Chinese indices like A50 and Shanghai Composite have all surged in the past few months. 

This rally is because China has been highly optimistic on the economy this year. It expects that the economy will hit the 5% target this year. Recent data shows that this is happening, with the manufacturing and services PMI figures remaining above 50.

The economy will benefit from the stimulus package unveiled by Beijing in 2024. It will spend over $1.4 trillion in the next few years, with most of these funds going to struggling local authorities. 

Beijing has also hinted that it will boost the stimulus package now that the US has launched a trade war with the country. Donald Trump has hiked tariffs on Chinese goods by about 20% this year. These tariffs are on top of those he implemented in the first term.

Analysts believe that China will do just fine even with these tariffs. Historically, Chinese manufacturers have dodged tariffs by routing their goods to the US through other countries in the Asian region. 

Also, the volume of goods imported from China will likely continue doing well since companies will intervene by hiking prices. The odds that firms will move their businesses from China to the US are low because of the elevated cost of doing business there. 

Hang Seng tech companies have soared

The other key reason why the Hang Seng index has jumped is that Beijing has supported the technology sector this year. Indeed, Xi Jinping has met with some of the top tech executives, including Jack Ma, the founder of Alibaba.

China is now keen to support the technology sector as it seeks to boost its competition with the United States. There are signs that it is achieving some of these goals, especially in the artificial intelligence industry. Just recently, DeepSeek sent shockwaves globally after its launch. Top firms like Alibaba and Tencent are now making advanced AI models.

The technology sector has helped to support the Hang Seng index this year. Top tech names in the index like Alibaba, BYD, Lenovo, SMIC, Alibaba Group, Alibaba Health, Xiaomi, and Kuaishou Technology have helped to lead this charge. 

Hang Seng index analysis: golden cross nears

HSI index chart | Source: TradingView

The weekly chart shows that the Hang Seng index has surged in the past few years. It has moved from a low of H$14,538 in 2022 to H$24,505 today. The index has recently soared above the key resistance level at H$23,230, the highest swing on October 7. 

It has also moved above the 50% Fibonacci Retracement level at H$24,040. Most notably, it is about to form a golden cross pattern as the spread between the 50-week and 200-week moving averages narrowed. 

Oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it has momentum. Therefore, the index will likely keep rising as bulls target the next key resistance level at H$26,290, the 61.80% retracement level, which is about 7.5% above the current level. 

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Crypto market slides despite Trump’s Bitcoin reserve announcement

The cryptocurrency market faced turbulence on Friday, with Bitcoin (BTC) plunging to an intraday low of $84,717 despite the announcement of a Bitcoin strategic reserve by the US government.

The downturn also affected major altcoins, including Ethereum (ETH), Solana (SOL), and XRP, as the overall crypto market shed nearly 4% of its value.

President Donald Trump’s executive order to establish a digital asset stockpile was expected to inject confidence into the market.

However, traders reacted differently, driving BTC, ETH, and other digital assets into negative territory. With BTC futures open interest (OI) declining by 4.6% and liquidations surpassing $259 million, market sentiment remains volatile.

BTC drops below $85K as liquidations rise

Bitcoin, which had shown signs of recovery earlier in the week, reversed gains and slumped by over 4% to trade at $87,071 at the time of writing.

CoinMarketCap data indicated a 24-hour low of $84,979, raising concerns about the market’s response to regulatory developments.

Source: CoinMarketCap

Data from Coinglass revealed that Bitcoin liquidations reached $259.24 million over the past day, highlighting the level of selling pressure. BTC futures OI dropped to $48.48 billion, reflecting reduced interest from traders.

ETH, SOL, and XRP follow the drop

Ethereum declined by 6% intraday, with prices fluctuating between $2,103.47 and $2,319.40. ETH futures OI also dipped by 4.24% to $19.24 billion, while liquidations reached $72.04 million.

Source: CoinMarketCap

The coin’s market dominance stood at 9.1%, reinforcing its significant presence despite the losses.

Solana (SOL) also saw a sharp decline, dropping 5% to trade at $143. The cryptocurrency registered an intraday low of $135.72, accompanied by liquidations worth $21.67 million.

Source: CoinMarketCap

XRP followed suit, losing just over 1% to trade at $2.50, with an intraday range of $2.39 to $2.64. Ripple’s token recorded liquidations of $24.34 million, aligning with broader market trends.

Source: CoinMarketcap

Meme coins decline with the market

Meme coins mirrored the broader sell-off, with Dogecoin (DOGE) shedding nearly 5% to trade at $0.1967, while Shiba Inu (SHIB) fell over 2% to $0.00001318.

Pepe Coin (PEPE) dropped by 6% to $0.000006717, reflecting reduced investor appetite for speculative assets.

Top crypto winners and losers

Despite the downturn, some tokens bucked the trend. Movement (MOVE) led the gainers with a 5% rise to $0.4945, coinciding with increased accumulations by Trump’s World Liberty Financial.

Sui (SUI) also gained 1%, trading at $2.68 after being included in WLFI’s strategic token reserve.

Meanwhile, Ondo (ONDO) recorded the largest drop, plunging 14% to $1.02. Sonic (S) followed with a 13% loss, trading at $0.5206, while Cardano (ADA) declined by 10% to $0.8549.

Despite the recent policy announcement, the crypto market remains on edge. Traders are looking ahead to the upcoming White House crypto summit for potential regulatory clarifications that could influence market movements in the near term.

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Elon Musk’s SpaceX faces fresh hurdles as Starship explodes again

SpaceX faced another major setback as its Starship spacecraft exploded mid-flight shortly after launching from Boca Chica, Texas.

This marks the second consecutive failure for Elon Musk’s Mars-bound rocket program in just over a month, raising concerns about the progress of SpaceX’s ambitious deep-space missions.

The test flight, designed to deploy mock satellites, ended abruptly as the vehicle lost control and disintegrated in space.

The Federal Aviation Administration (FAA) has now launched a mishap investigation, grounding further Starship launches until the root cause is identified.

The incident has also led to brief disruptions in air traffic, with flights diverted due to falling debris.

Starship explodes, debris falls over the Caribbean

The 403ft (123m) Starship rocket lifted off at approximately 6:30 pm ET (23:00 GMT), successfully separating from its Super Heavy booster, which returned to land as planned.

However, moments later, the spacecraft began spinning uncontrollably, with multiple engine shutdowns observed on SpaceX’s live stream.

Shortly after, Starship disintegrated, scattering fiery debris over parts of Florida and the Caribbean.

Videos circulated on social media captured the dramatic breakup of the spacecraft as streaks of fire lit up the sky.

The FAA temporarily halted commercial flights at major airports, including Miami, Fort Lauderdale, Palm Beach, and Orlando, due to concerns over falling debris. Air traffic around Turks and Caicos was also diverted.

SpaceX later confirmed the failure, stating that the spacecraft had experienced a “rapid unscheduled disassembly,” a term used by the company to describe catastrophic explosions.

The team has begun analyzing flight data to determine the cause of the failure, with an emphasis on improving Starship’s reliability for future missions.

SpaceX

@SpaceX

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During Starship’s ascent burn, the vehicle experienced a rapid unscheduled disassembly and contact was lost. Our team immediately began coordination with safety officials to implement pre-planned contingency responses.
We will review the data from today’s flight test to better…

5:46 AM · Mar 7, 2025

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FAA launches investigation

Following the explosion, the FAA launched an investigation, requiring SpaceX to assess the failure’s cause and obtain approval before attempting another flight.

The regulatory body has mandated that SpaceX submit a detailed report outlining potential safety risks and corrective actions before Starship can return to flight.

This setback comes just weeks after Starship’s previous test flight ended in a similar failure.

On 16 January, the spacecraft exploded eight minutes into its mission due to a fire near the liquid oxygen tank, causing debris to rain down on Caribbean islands.

At that time, SpaceX attributed the failure to issues with fuel temperature and fuel lines, prompting modifications ahead of the latest launch.

Despite these efforts, the latest test demonstrated that further refinements are needed before Starship can achieve its goals of ferrying astronauts and cargo to the Moon and Mars.

The back-to-back failures have intensified scrutiny on SpaceX’s approach to rapid iteration, which favours frequent testing and failures as part of the development process.

Musk’s deep-space plans at risk

The continued failures of Starship pose a challenge to Musk’s vision of making space travel more cost-effective and enabling human settlement on Mars.

NASA has also invested in Starship for its Artemis program, which aims to return astronauts to the Moon.

Delays in Starship’s development could impact the timeline for NASA’s lunar missions, which currently depend on SpaceX’s capability to deliver crew and cargo beyond Earth’s orbit.

While SpaceX remains committed to its strategy of aggressive testing, the recent explosions suggest that the company may need to refine its approach.

With regulatory scrutiny mounting and safety concerns growing, SpaceX faces increasing pressure to ensure Starship is not only powerful but also reliable enough for deep-space travel.

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Top FTSE 100 and FTSE 250 shares to watch next week

The FTSE 100 and FTSE 250 indices pulled back this week as investors focused on the ongoing geopolitical issues. The mid-cap FTSE MIB index has retreated by over 4% from its highest level this year, while the blue-chip FTSE 100 fell by over 2.50%.

These indices reacted to key earnings results by some of the biggest companies in the UK. Some of the most notable ones that published their results this week were Entain, Flutter Entertainment, ITV, Harbour Energy, and Admiral Group. 

The UK earnings season has largely ended, meaning that there will be no major companies that will publish their numbers next week. Some of the top FTSE 100 and FTSE 250 shares to watch next week will be Helios Towers, Legal & General, Balfour Beatty, and Hikma Pharmaceuticals.

Legal & General Group

Legal & General, one of the biggest insurance and asset management companies in the FTSE 100 index, will be in the spotlight next week as it publishes its financial results on March 12. 

These results come as its share price has moved sideways this year and underperformed Aviva its biggest competitor. Its results came a few weeks after the company sold its US protection business to Meiji Yasuda.

It also boosted its capital return strategy, with the anticipated buyback being £1 billion. It expects to return about 40% of its market cap in the next three years.

The most recent financial results showed that the core operating profit rose to £849 million in the first half of the year. Its profit after tax rose to £223 million, while its assets under management jumped to £1.13 trillion.

Read more: Legal & General (LGEN) share price has plunged: what next?

Helios Towers

Helios Towers is a top company in the telecommunication industry, where it offers infrastructure used by some of the biggest firms. It mainly focuses on Africa, where it has partnerships with leading brands like MTN and Safaricom. 

Helios Towers share price has underperformed the market in the past few years and is now 57% below its all-time high. 

The most recent results showed that Helios Towers had 14,185 sites in Africa, a 2% increase from a year earlier. Its revenue rose by 11% to £350 million, while the adjusted EBITDA rose by 19% to £206 million. The management guided to a full-year EBITDA of between £410 million and £420 million. 

Balfour Beatty

Balfour Beatty is a leading company in the infrastructure industry. It is a top company that offers engineering solutions across industries like real estate, roads, and utilities. 

Balfour Beatty share price has soared to 447p this year, and is up by 65% from the lowest level last year.  

The most recent trading statement showed that its order book jumped by 5%, helped by the UK energy and US building industries. Its full-year revenue, which will come out next week, is expected to show its revenue rose to £10 billion, a 2% increase.  Balfour Beatty’s profit after tax is expected to be higher than what it made a year earlier. 

The other top FTSE 100 and FTSE 250 shares to watch next week will be firms like 4imprint, PensionBee, CAB Payment Holdings, Savills, and Berkeley Group Holdings.

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Trump establishes ‘digital Fort Knox’ with US strategic Bitcoin reserve: How will the crypto market react?

In a significant shift in digital asset policy, US President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve.

The move marks the first time the US government will formally hold Bitcoin as a long-term asset.

According to White House AI and Crypto Czar David Sacks, the reserve will be funded exclusively with Bitcoin seized through asset forfeiture, meaning it will not require taxpayer funding.

Sacks estimated that the government currently holds approximately 200,000 BTC, though a full audit has never been conducted.

The executive order mandates a thorough review of the federal government’s digital asset holdings and prohibits the sale of Bitcoin in the reserve, likening it to a “digital Fort Knox.”

Trump’s administration has positioned the move as part of an overarching effort to solidify the US as a leader in the cryptocurrency space.

No taxpayer burden for Bitcoin holdings

The executive order ensures that Bitcoin held by the US government will not be sold under normal circumstances, protecting it as a strategic asset.

Sacks highlighted that past government sell-offs of Bitcoin resulted in over $17 billion in lost value.

The new directive aims to prevent further financial losses by maintaining Bitcoin as a long-term holding, much like gold reserves.

Trump has repeatedly signalled his intention to make the US the “crypto capital of the world,” and this move aligns with that broader strategy.

Unlike previous administrations that auctioned off seized Bitcoin, this order effectively classifies the digital asset as a national strategic reserve, reducing supply on the open market and reinforcing its value.

In addition to Bitcoin, the executive order introduces a broader US Digital Asset Stockpile that will contain other seized cryptocurrencies, including Ethereum and XRP.

However, the order explicitly states that the government will not acquire additional crypto beyond what is obtained through asset forfeiture.

Bitcoin acquisition strategies

The Trump administration has directed the Treasury and Commerce Departments to investigate budget-neutral methods for acquiring more Bitcoin.

The focus remains on expanding the government’s holdings without imposing additional costs on taxpayers.

One proposed method involves forming public-private partnerships with US-based crypto firms to manage and grow the reserve.

This initiative marks a shift from previous government practices of selling seized Bitcoin at auction, often at a fraction of its future value.

Market analysts suggest that this change in approach could reduce volatility caused by large-scale government liquidations and further cement Bitcoin’s status as a digital store of value.

Market impact and global adoption

At press time, Bitcoin is down 3% in the past 24 hours, trading at $86,600.

The market has not yet fully responded to the announcement, but long-term implications suggest a tightening of Bitcoin’s circulating supply.

With fewer sell-offs expected from the US government, this move could strengthen Bitcoin’s position as a hedge against inflation and economic uncertainty.

Internationally, the executive order could encourage other governments to reconsider their stance on Bitcoin.

If the US successfully integrates Bitcoin into its strategic reserve, other nations may follow suit, leading to greater institutional adoption and reduced regulatory hostility.

In addition to the Bitcoin reserve, Trump signed executive actions delaying tariffs on Mexican and Canadian imports for nearly a month.

Goods covered by the USMCA trade agreement will remain tariff-free following discussions with Canadian officials and Mexican President Claudia Sheinbaum.

However, goods not covered under the agreement, such as avocados and Canadian energy exports, may still face tariffs.

As global competition for Bitcoin intensifies, the US’s decision to establish a Strategic Bitcoin Reserve represents a landmark shift in financial policy.

Whether this move will ultimately benefit the crypto market remains to be seen, but it undeniably positions Bitcoin as a key player in the future of global finance.

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Carvana stock price is crumbling: is it safe to buy the CVNA dip?

Carvana stock price has moved into a bear market after plunging by over 36% from its highest level this year. CVNA has fallen to its lowest level since January 26, giving it a market cap of $46 billion. So, is Carvana a good stock to buy now?

Carvana is growing, but concerns remain

Carvana has become one of the fastest and best-performing companies in Wall Street after surging by over 180% in the last five years. It rose by over 6,300% from its lowest level in 2023, bringing its market cap to over $43 billion.

Carvana stock has jumped after the management successfully handled its debt burden, which threatened its existence a few years ago.

The company has also benefited from strong revenue growth as it continued to gain market share in the US. As a result, its revenue jumped to over $13.6 billion in 2024, up from $10.7 billion a year earlier. 

It has also become a highly profitable company, with the annual figure rising to $210 million. This profitability is because of its cost reduction, with its advertising expense per unit falling by 25% to $550.

Carvana’s stock has also jumped as the management has prioritized profitability over revenue growth. This prioritization has pushed the management to ensure that all vehicles it sells are delivered profitably. 

Carvana has attracted substantial criticism and praise in the past. Most critics point to its valuation and its arrangement with DriveTime, a company started by Carvana’s founder father. Hindenburg Research, a popular short seller company that shuttered its operations this year, accused the company of trade manipulation.

It also accused Carvana of having a toxic loan book, comprising of $15.4 billion in asset-backed securities (ABS) and substantial delinquencies. Carvana has rejected all these claims and maintained that its business was doing well.

CVNA growth continued soaring in Q4

The most recent results showed that Carvana continued doing well in 2024. It sold 416,348 vehicles during the year, a big increase from the 312,847 it sold a year earlier. These vehicles brought in its revenue to $13 billion.

Notably, Carvana’s annual retail units were lower than the 425,237 and 412,296 that it sold in 2021 and 2022. That is a sign that the company is benefiting from higher vehicle prices sold on its platform. Indeed, the gross profit per unity rose to $7,196, up from minus $201 a decade earlier.

The management expects that its business will continue doing well this year. While it did not give a number, Wall Street analysts anticipate that the first quarter revenue will rise by 27% to $3.9 billion. The annual revenue figure will grow by 19% to $16.34 billion, followed by $19.5 billion next year.

The biggest concern for Carvana stock price is that it is still one of the most overvalued companies on Wall Street. It has a trailing P/E ratio of 117.52 and a forward multiple of 69. 

Read more: JPM raises Carvana stock target: how high could CVNA go in 2025?

Carvana stock price analysis

CVNA chart by TradingView

The daily chart shows that the CVNA share price has crashed after peaking at $292.87 earlier this year. It has now plunged by over 30% to $186, and moved below the key support level at $267, the highest swing in November last year. This price was the double-top point. 

The stock has crashed below the 50-day and 100-day moving averages and is nearing the neckline at $175.50, the lowest swing on January 3. Also, the Percentage Price Oscillator (PPO) and other oscillators have all pointed downwards.

Therefore, because of the double-top pattern, there is a risk that it will have a strong bearish breakdown, with the next point to watch being at $150. 

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Trump tariffs could ‘wipe out all profits’ for the US legacy automakers

US legacy automakers are broadly expected to bear the brunt of higher tariffs on Canada and Mexico.

Still, a Barclays analyst warns the extent to which these new levies could prove to be disruptive for the “Big Three” is being underappreciated.  

Shares of Ford Motor, General Motors, and Stellantis have been under pressure after new tariffs took effect on Tuesday.

Both Canada and Mexico have since announced retaliatory tariffs on goods from the US. 

What Trump’s tariffs mean for Detroit automakers

The Detroit automakers will have to make significant adjustments in terms of price increases and production plans to remain profitable amidst higher tariffs, says Barclays analyst Dan Levy.

Without such adjustments, “we estimate it [new tariffs] could wipe out effectively all profits for the D3 OEMs,” he told clients in a research note this week.

Year-to-date, the new government’s plans of raising taxes on imports from Canada and Mexico have resulted in a significant hit to shares of legacy car manufacturers.

Ford is down about 10% versus its year-to-date high, while Stellantis and GM are down more than 10% each. Still, Levy warned of “further volatility ahead … until there’s more certainty on the end outcome.”

Ford is relatively less exposed to Trump tariffs

Barclays sees Ford as less exposed to Trump tariffs compared to its peers GM and Stellantis.

Why? Because Canada and Mexico account for as much as 35% of their production in North America – and that includes their high-profit vehicles like trucks.

In comparison, Ford makes its high-profit vehicles in the US.

That said, it’s not like Ford Motor is entirely insulated from increased levies.

Trump tariffs will nonetheless have a significant effect on Ford as it relies on the two countries for automotive parts.

A 25% tariff could increase the overall cost of a vehicle that sources about half of its parts from Canada and Mexico by up to $3,500, according to Dan Levy.

Should you buy the dip in automotive stocks?

While the future looks rather grim for the Detroit automakers amidst higher tariffs on Canada and Mexico, the Barclays analyst sees a “buying opportunity” in the recent weakness in automotive stocks.

“Given the potential for significant disruption ahead if the tariffs stick, we believe it’s a reminder as to why tariffs of this magnitude are unlikely to stick,” he argued in his research note.

Like many, Levy expects the United States to use higher tariffs as a strategic tool to negotiate better trade terms with its two allies.

Other analysts seem to agree with Barclays on the legacy automakers considering the average price targets on all three continue to suggest significant upsides in their share prices from current levels.  

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Keir Starmer’s popularity surges to six-month peak amid Ukraine diplomacy

Prime Minister Keir Starmer’s diplomatic engagements over Ukraine in the past week have earned him his highest poll ratings in six months, according to YouGov.

His handling of international relations, particularly in contrast to Donald Trump’s recent actions, seems to have resulted in the ratings bump.

Meanwhile, Trump’s behaviour appears to have negatively impacted his closest UK ally, Nigel Farage, whose favourability score declined from 30% to 26%.

The prime minister’s visit to Washington DC saw him win plaudits for his approach to Trump before returning to Downing Street to welcome Ukrainian President Volodymyr Zelenskyy.

The meeting followed tense scenes between Zelenskyy, Trump, and JD Vance at the White House.

Starmer then hosted a summit with European leaders and Canadian Prime Minister Justin Trudeau at Lancaster House, further solidifying his leadership as uncertainty grows over Trump’s stance on Ukraine.

Polls show growing support for Starmer

According to YouGov, Starmer’s favourability rating has risen to 31%, up from 26% in mid-February.

At the same time, Trump’s unfavourability rating has surged to 80%, up from 73% two weeks ago.

Even among Reform UK voters, Trump’s popularity has suffered, with more now holding a negative view than a positive one.

The proportion of Reform UK supporters with an unfavourable opinion of Trump has climbed 25 points to 53%, while his favourable rating has fallen from 66% to 45%.

Public sentiment toward Zelenskyy has also improved, with his favourability rating rising from 64% to 71%.

The shift is particularly notable among Reform UK voters, among whom Zelenskyy is now more popular than Trump.

Support for Zelenskyy among this group has climbed from 49% to 62%, while the proportion with an unfavourable view has dropped from 37% to 27%.

YouGov noted that Starmer’s ratings have improved across supporters of all four major parties, reflecting a broader shift in public perception amid the ongoing Ukraine crisis.

Earlier in the week, polling by More in Common also indicated that more Britons now view Starmer as the best choice for prime minister when compared to Kemi Badenoch and Nigel Farage.

The percentage of voters who believe he is doing a good job has increased from 22% to 28%, while Farage’s numbers have dropped from 26% to 22%.

Badenoch’s approval has risen slightly from 11% to 12%. However, 52% of the public still believe Starmer is doing a poor job despite his recent gains.

More in Common also found that 56% of the public believe Starmer’s handling of the Ukraine talks reflects well on the government, compared to just 9% who think it reflects poorly.

During Prime Minister’s Questions on Wednesday, Starmer issued a strong rebuke to JD Vance, referencing British soldiers who lost their lives in Iraq and Afghanistan.



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