FT News Briefing Foreign investors feel the pinch of US stock slump
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Mar 24, 2025 Canada's prime minister has called for snap elections amid political turmoil. European investors are feeling the heat from a slump in U.S. equities, compounded by a declining dollar. Carmakers are racing to deliver vehicles before impending tariffs hit. In the sports world, top tennis players are suing governing bodies, alleging unfair treatment and a cartel-like system that limits their earnings. The conversation touches on shifting dynamics in global trade and the evolving landscape of athlete rights.
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Double Whammy for Foreign Investors
- The slump in U.S. stocks and the weakening dollar are creating a double blow for foreign investors, especially those unhedged.
- This situation raises questions about the dollar's continued supremacy as a safe haven currency.
The Virtuous Cycle in Reverse
- European investors benefited from rising U.S. stocks and a strengthening dollar, creating a virtuous cycle.
- This cycle has reversed, with both stocks and the dollar weakening, impacting European investors' returns.
Tennis Players' Lawsuit
- Tennis players are suing governing bodies, alleging anti-competitive practices and poor working conditions.
- This lawsuit highlights players' growing awareness of their market power and their demands for better treatment.