Asian Markets Brace for Volatility Amid Trump's Tariff Announcement
Global markets are poised for fluctuations as President Donald Trump's impending tariffs on steel and aluminum imports create uncertainty.
Commodity Currencies Tumble, Asian Stocks Primed for Declines
Commodity currencies, including the Australian, New Zealand, and Canadian dollars, have weakened following Trump's comments. Equity futures in Australia, Japan, and Hong Kong indicate potential losses.
US-Listed Chinese Stocks Maintain Gains
Contrary to the downward trend, contracts in mainland China and US-listed Chinese shares experienced an uptick on Friday due to Trump's decision to delay the tariff application on low-value packages from China.
Trump's Tariff Measures Escalate Market Jitters
Trump's 25% levy on steel and aluminum, scheduled to be announced Monday, adds to investor unease. Markets anticipate further tariff measures and Federal Reserve Chair Jerome Powell's congressional testimony this week.
Economic Data Overshadowed by Political Shifts
"Markets continue to react to Trump policy shifts rather than economic data," said Bob Savage of BNY. Powell's remarks will be crucial in assessing the impact of tariffs on monetary policy.
S&P 500 Index Slides Amid Tariff Concerns
The S&P 500 index fell 1% on Friday as tariff fears intensified and consumer sentiment data showed a decline. The US dollar gained while Treasuries fell across the curve after strong labor market figures.
China's Growing Tech Sector Sparks Optimism
Chinese shares will be closely monitored as the country's advancements in artificial intelligence boost confidence in its tech companies. However, concerns remain over inflationary pressures and a potential slowdown in consumer spending.
South African Rand Falls on US Aid Suspension
South Africa's rand underperformed other currencies after the US froze aid over land-expropriation and genocide allegations against Israel. The country has expressed concern over the accuracy of the claims.
Energy Markets React to Tariff Impact
Oil prices dropped 2.1% last week due to fears that Trump's tariffs on China would reduce demand. Gold, on the other hand, reached a sixth consecutive weekly gain, marking its longest winning streak since January 2023.
Upcoming Key Economic Events
* China's retaliatory tariffs on US goods (Monday)
* ECB President Christine Lagarde's testimony to European Parliament (Monday)
* Norway GDP (Tuesday)
* BOE Governor Andrew Bailey's speech (Tuesday)
* Fed Chairman Jerome Powell's monetary policy testimony (Tuesday)
* US CPI (Wednesday)
* UK industrial production and GDP (Thursday)
* Eurozone industrial production (Thursday)
* Eurozone GDP (Friday)
Market Movements
* EUR/USD: -0.3%
* JPY/USD: Unchanged
* CNY/USD: -0.2%
* AUD/USD: -0.5%
* CAD/USD: -0.6%
* 10-year Australian bond yield: +4 basis points
* Bitcoin: +0.4%
* Ether: +1.5%
* Nikkei 225 futures: -1.2%
* Hang Seng futures: -0.3%
* S&P/ASX 200 futures: -0.8%