Market Update 11/03/2025

U.S. Market:
Concerns over tariffs and U.S. economic growth have intensified, leading to a decline in risk sentiment during overnight trading. The Nasdaq is on track to record its worst single-day performance since September 2022. By the close of North American trading, the Nasdaq dropped 4.3%, the S&P 500 fell 2.9%, and the Dow Jones Industrial Average declined 2.2%. The U.S. 10-year Treasury yield dropped by 8 basis points to 4.22%. Crude oil prices fell by 1.5% to $69.30 per barrel.

Asian Markets:
Asian stock markets had a mixed start to the week. Japan’s Nikkei index rose by 0.4%, the Hang Seng index dropped by 1.9%, and the CSI 300 index fell by 0.4%. The Australian ASX 200 index saw a modest increase of 0.2% during a quiet trading session on Victoria State public holiday. The Japanese 10-year government bond yield rose to 1.578%, the highest level since 2008.

European Markets:
European stock markets opened slightly higher, with all major indices showing small gains at the start of the session. However, by the close, European markets experienced a significant drop, with the FTSE index and the CAC index falling by 0.9%, while the DAX index dropped by 1.7%.

Foreign Exchange Market:
The Australian dollar dropped to a new daily low of 0.6265 amid a surge in risk aversion. The New Zealand dollar also fell to 0.5700. The euro dropped more than 50 points to around 1.0810 after a statement from Germany’s Green Party, but it rebounded to 1.0849 after Green Party leader Banaszak announced the goal of reaching an agreement. The USD/JPY dropped to a low of 146.625.

Economic Data and News:
The New York Federal Reserve’s February inflation expectations rose from 3.00% to 3.13%, though the market’s reaction was muted.
Germany’s Green Party stated it would not support the defense investment debt bill in Parliament. This news initially caused the euro to fall against the dollar, but the euro rebounded after Green Party leader Banaszak announced that the goal was to reach an agreement.