Global Markets:
- Asian Stock Markets : Nikkei down 2.69%, Shanghai Composite down 0.06%, Hang Seng down 0.38% ASX down 1.65%
- Commodities : Gold at $2817.35 (-0.43%), Silver at $32.05 (-0.68%), Brent Oil at $76.59 (1.59%), WTI Oil at $74.14 (2.13%)
- Rates : US 10-year yield at 4.536, UK 10-year yield at 4.5340, Germany 10-year yield at 2.458
News & Data:
- (CAD) GDP m/m -0.2% vs -0.1% expected
- (USD) Core PCE Price Index m/m 0.2 to 0.2 expected
Markets Update:
Asia-Pacific markets opened lower on Monday following U.S. President Donald Trump’s decision to impose tariffs on Canada, Mexico, and China over the weekend. Australia’s S&P/ASX 200 declined 1.61%, while Japan’s Nikkei 225 and Topix lost 1.99% and 1.87%, respectively. South Korea’s Kospi fell 2.52%, and the Kosdaq dropped 2.79%. Hong Kong’s Hang Seng Index opened 1.23% lower.
In India, the Nifty 50 slipped 0.69%, and the Sensex fell 0.88% at the open. Over the weekend, India’s Union Budget introduced major income tax relief for the middle class and pledged to reduce the fiscal deficit to 4.4% of GDP for the next financial year, down from the revised 4.8%. Meanwhile, Chinese markets remained closed for the Lunar New Year holiday. Later in the day, China’s Caixin/S&P Global services PMI data is set for release, with forecasts estimating a reading of 50.5, according to a Reuters poll.
On Saturday, Trump signed an order implementing a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods. Canadian energy exports, however, will face a reduced 10% tariff. These tariffs are set to take effect on Tuesday. The U.S. engages in approximately $1.6 trillion in annual trade with these three nations, making the new tariffs a significant policy shift.
On Wall Street, stocks closed lower Friday. The S&P 500 fell 0.50% to 6,040.53, while the Dow Jones Industrial Average dropped 337.47 points (0.75%) to 44,544.66, weighed down by a decline in Chevron. The tech-heavy Nasdaq Composite also ended the session lower.
Upcoming Events:
- 02:45 PM GMT – USD ISM Manufacturing PMI
- 03:00 PM GMT – USD ISM Manufacturing Prices
