U.S. Market:
The market opened weak on Monday, with choppy trading fluctuating around the flatline before turning red. It continued to weaken into the close, with the Nasdaq dropping 2.4%, the S&P 500 falling 1.7%, and the Dow Jones Industrial Average declining 1.5%. The U.S. 10-year Treasury yield fell 3 basis points to 4.17%. Brent crude oil prices dropped 2.0% to $71.35 per barrel.
Asian Markets:
Asian markets performed positively, with the Nikkei Index rising 1.7% and the Hang Seng Index gaining 0.3%, while the Shenzhen Index remained stable. The Australian ASX Index rose 0.9%, with all sectors posting gains.
European Markets:
Markets opened mostly flat but closed higher, with the FTSE Index rising 0.7%, the CAC Index gaining 1.1%, and the DAX Index surging 2.6%.
Forex Market:
The Australian dollar traded within the 0.6209/0.6230 range during the Asian session, hitting a high after China’s Caixin Manufacturing PMI exceeded expectations. Following the release of U.S. manufacturing data, it climbed to 0.62545 before dropping to 0.6217 after Trump confirmed tariffs on Mexico and Canada would proceed as planned. The New Zealand dollar briefly reached a new high of 0.5641. The euro rose to 1.05045 before pulling back slightly. The USD/JPY rebounded from a low of 149.94 to an intraday high of 150.36 before retreating to around 150.00 after U.S. data was released.
Economic Data:
China’s Caixin Manufacturing PMI came in at 50.8, beating expectations of 50.4.
Italy, France, and Germany’s February Manufacturing PMIs were 47.4, 45.8, and 46.5, respectively, all above forecasts.
The Eurozone’s preliminary February CPI rose 2.4% year-over-year (0.5% month-over-month), surpassing expectations of 2.3% (0.4% month-over-month).
The U.S. February Manufacturing PMI was revised up to 52.7 from an initial 51.6.
The February ISM Manufacturing Index fell from 50.9 to 50.3, below expectations of 50.7.
The Prices Paid Index saw a significant increase, while the Employment and New Orders Indexes came in lower than expected.
Top News:
Trump stated that Europe spends more on Russian oil and gas than on Ukraine.
Trump announced that tariffs on foreign agricultural products would take effect on April 2 and confirmed that tariffs on Mexico and Canada would proceed as scheduled the following day.
This news further dampened risk sentiment, leading to weakness in the Australian dollar, Canadian dollar, and Mexican peso against the U.S. dollar.
