Global equity markets experienced a general decline on Wednesday, following the significant impact of stricter U.S. export regulations on advanced computer chips utilised in artificial intelligence, which heavily affected companies like Nvidia and other technology sector firms.

The S&P 500 futures saw a decline of 1.2%, while the Dow Jones Industrial Average futures decreased by 0.6%.

Nvidia's stock experienced a substantial decline, dropping 6.3% in post-market trading, following the company's announcement that the U.S. government had implemented more stringent export regulations on one of its computer chips specifically engineered for artificial intelligence applications; concurrently, shares of rival chip manufacturer AMD also decreased by 7.1% subsequent to the closure of U.S. markets.

Worries about trade disputes were also reignited by an announcement from the Trump administration that an investigation into imports of crucial minerals like rare earths, which are vital components in smartphones, electric vehicles, and numerous other goods, was being launched.

In early European trading, the UK's FTSE 100 index declined by 0.2% to 8,233.10 points, following the government's announcement that UK inflation had decreased for the second consecutive month in March, principally due to reduced gas prices.

The German DAX index experienced a decline of 0.7%, settling at 21,107.68, concurrently, the CAC 40 in Paris relinquished 0.6%, closing at 7,289.67.

Stock markets in China were the main reason for the fall in the region after the Chinese government announced that their economy, the second largest in the world, grew by a strong 5.4% in the last year, thanks to good results in factories, shops, and exports. But when compared to the previous three months, growth was slower at 1.2% from January to March, compared to 1.6% in the last three months of 2024.

In Hong Kong, the Hang Seng index experienced a 2% decline, closing at 20,922.54, while the Shanghai Composite index recovered earlier losses, registering a marginal increase of 0.1% to settle at 3,271.19.

Economists in the private sector have lowered their predictions. This happened after President Donald Trump recently increased tariffs on most imports from China to 145%. At the same time, China raised its taxes on imports from the U.S. to 125%.

According to analysts at ANZ Research, economic activity in the current quarter is already showing signs of weakening.

In our assessment, the tariff's impact stems more from the uncertainty it generates than the tariff itself; President Trump's pronouncements have notably influenced business confidence and activity, as stated by Raymond Yeung and fellow ANZ researchers in a report following the release of China's data.

In Tokyo, the Nikkei 225 index experienced a 1% decline, settling at 33,920.40, significantly influenced by major technology firms such as chip testing equipment manufacturer Advantest, whose stock fell by 6.6%, and Disco Corp., which saw an 8% decrease.

In South Korea, the Kospi index declined by 1.2%, reaching 2,447.43, whereas in Australia, the S&P/ASX 200 experienced a marginal decrease of less than 0.1%, settling at 7,758.90.

The Sensex in India remained largely static, while Bangkok's SET experienced a marginal decline of 0.1%.

On Tuesday, US equities saw modest declines, with the S&P 500 easing by 0.2% and the Dow Jones Industrial Average decreasing by 0.4%, while the Nasdaq composite experienced a marginal dip of less than 0.1%.

The ambiguity surrounding President Donald Trump's tariffs caused investors to remain vigilant, anticipating future developments.

Following last week's abrupt and significant fluctuations that undermined confidence in U.S. government bonds as a secure asset, the U.S. bond market seemed to stabilise.

The return on 10-year Treasury bonds remained stable at 4.33%, a decrease from 4.38% late Monday and 4.48% at the conclusion of the previous week. A mere week earlier, the figure stood at 4.01%. Typically, bond yields decline during periods of investor anxiety, suggesting the fluctuations this week have provided a degree of confidence.

The U.S. dollar's value also stabilised following its drop last week, fueling concerns that Trump's trade dispute could also be eroding its reputation as a secure investment.

Palantir Technologies experienced a 6.2% increase, marking a second consecutive day of positive movement, following NATO's announcement that it would integrate the company's artificial intelligence functionalities into its allied command operations.

Early Wednesday, U.S. benchmark crude oil declined by 69 cents to $60.64 a barrel, while Brent crude, recognised as the international standard, saw a decrease of 65 cents to $64.01 per barrel in other transactions.

Trump's tariffs have heightened concerns about an economic deceleration, which is dampening demand for oil and other commodities.

The value of the U.S. dollar depreciated against the Japanese yen, declining to 142.26 from 143.24 yen, while the euro appreciated, reaching $1.1377 from $1.1283.