Market Update 12/03/2025

U.S. Market:
Wall Street weakened again overnight, with all three major indices declining. However, market sentiment improved later in the trading day. By the close, the Nasdaq rose by 0.5%, the S&P 500 dipped slightly by 0.2%, and the Dow Jones Industrial Average fell by 0.6%. The U.S. 10-year Treasury yield increased by 6 basis points to 4.28%. Crude oil prices rose by 0.8% to $69.80 per barrel.

Asian Markets:
On Tuesday, Asian stock markets generally weakened. The Nikkei index fell by 0.6%, the Hang Seng index dropped by 0.1%, while the Shenzhen index rose by 0.3%. The Australian ASX index declined by 0.9%, with the information technology sector seeing the largest drop at 4.0%.

European Markets:
European stock markets opened mixed, with the Stoxx 50 index up by 0.2%, the FTSE 100 index down by 0.2%, and the DAX index rising by 0.4%. After the U.S. markets opened, European markets extended their losses, with the FTSE, CAC, and DAX indices all closing down by around 1.3%.

Foreign Exchange Market:
The Australian dollar traded in the range of 0.6259/0.63115. It briefly touched a low following the release of the Australian National Bank’s Business Confidence Index, but rose to a new high of 0.6300 during the U.S. market rebound. The New Zealand dollar rose to a new high of 0.5718. The euro saw a fresh round of buying during the European session, breaking above 1.0900 for the first time since November 24. In the New York session, supported by news of Ukraine’s willingness to accept a U.S. proposal for a 30-day temporary ceasefire, the euro climbed to a high of 1.0941. The USD/JPY rose to a high of 148.12.

Economic Data:
The U.S. January JOLTS job openings rose to 7.74 million, higher than the revised 7.508 million and the expected 7.60 million.
Australia’s February NAB Business Confidence Index dropped to -1, down from 4 in the previous month.

Headline News:
U.S. President Trump announced that he would impose a 50% tariff on Canadian steel and aluminum in response to Ontario’s 25% tariff on electricity imports from the U.S. He also criticized Canada’s agricultural tariffs, threatened to shut down Canada’s automobile industry, and again suggested that Canada become the 51st state of the U.S. However, later in the trading day, reports emerged that Trump was reconsidering his tariff policy on Canada, which helped improve risk sentiment.
The Premier of Ontario, Canada, stated that if necessary, they would not hesitate to cut off electricity supplies to the U.S. Deputy Prime Minister Carney indicated that Canada would maintain the tariffs until the U.S. shows respect, and said that Canada’s response would have the “maximum impact” on the U.S.
Reports indicated that Ukraine was willing to accept a U.S. proposal for a 30-day temporary ceasefire, following productive talks between both parties.
Comments from the co-leader of Germany’s Green Party suggested progress on the proposed defense spending bill, which boosted the euro.

Here are the latest mid-market rates: