ING Groep Shares Plunge 5.26% as Trump Tariffs Spark Selloff

ING Groep's shares dropped 5.26% in pre-market trading on April 4, 2025, as European lenders extended losses amid a deep selloff in equities sparked by U.S. President Donald Trump's sweeping tariffs.

ING Groep, along with other major European banks, faced significant declines due to the tariff selloff. The selloff was not confined to Europe, indicating a broader market reaction to the tariffs. European banks, sensitive to economic outlook, racked up the most losses among sectors.

Chris Turner, global head of markets at ING, warned that the blowback of US tariffs on the US domestic economy leaves the dollar naked. Investors flocked to the relative safety of government bonds, pushing prices up and yields lower. The yield on ten-year UK gilts fell towards 4.5pc, and the equivalent yield on US Treasuries dropped to 4 per cent.

Analysts warned that Trump's tariffs could tip the US into recession, leading to a tariff spiral of doom. The slump in the dollar and government bond yields suggests investors are more concerned about a downturn in the US economy than the inflationary impact of tariffs.

Banks bore the brunt of the stock market sell-off amid fears of a global recession. The hardest-hit were shares in Standard Chartered and HSBC, which led the fallers in the FTSE 100 index. Analysts said it was exposed to any fall in deal activity which would affect its investment banking unit. Reduced demand for loans and the prospect of deeper and faster interest rate cuts could also squeeze profits.