📆 Thursday, February 27
► European markets opened lower as Trump’s 25% tariff threat on EU autos and goods sparked fears of a trade war escalation. The Euro Stoxx 600 fell sharply 0.7%, with Germany’s DAX (-1.0%) and France’s CAC 40 (-0.3%) sliding as well. Automakers plunged as Volkswagen (-1.6%), Stellantis (-3.1%), Mercedes (-1.6%), BMW (-2.6%) and Porsche (-2.4%) tumbled weighing heavily on European (especially German) markets. Ferrari (-9.0%) dropped after Exor sold a 4% stake worth €3B. Meanwhile, Rolls-Royce (+20%) surged after raising its mid-term growth targets. Investors are now focusing on key inflation and jobs data from Germany, France, and Spain due tomorrow.
► US stock futures are moderately higher, with S&P 500 (+0.2%) and Nasdaq 100 (+0.2%) higher after Nvidia’s (NVDA) delivered good-but-not-great quarterly numbers on Wednesday, drawing a muted response from investors accustomed to the recent mega results. The AI giant reported revenue surged 78% YoY to $39.33B, fueled by ongoing huge AI demand, and guidance cam in above expectations ($43B vs. $41.78B expected). However, investors expected a strong beat, and gross margin concerns led to profit-taking. Nvidia is trading mixed (currently higher again) in pre-market trading. Meanwhile, Trump confirmed 25% tariffs on Mexico and Canada starting April 2, though conflicting statements created confusion. Treasury yields rebounded, with the 10-year yield climbing to 4.3%, as traders assessed inflation risks from tariffs.
► Asian markets were mixed, reacting to Trump’s tariffs, Nvidia earnings, and China’s latest stimulus plans. Japan’s Nikkei (+0.3%) rebounded after a two-day losing streak, though retail holdings giant Seven & I (-11%) plunged as its buyout deal collapsed. China’s Shanghai Composite gained slightly up 0.2%, while the Shenzhen Component (-0.26%) declined as technology stocks saw profit-taking. The offshore CNY weakened past 7.27/USD amid growing US-China trade tensions. Hong Kong’s Hang Seng (-0.29%) pared gains after hitting a multi-week high, while Australia’s ASX 200 (+0.33%) rose, supported by energy stocks despite weak capital expenditure data.
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