📆 Thursday, March 6
► European markets started positively into today's session with Germany’s spending overhaul fueled expectations of stronger growth, while (temporary) US tariff exemptions on autos provided relief to investors. However, gains were only short-live. The Stoxx 600 fell 0.5%, the DAX is still 0.5% higher but lost most of it's initial strong gains, as automakers rallied on Trump’s decision to delay tariffs on Mexico and Canada for one month. Merck KGaA (+1.5%) reported strong FY24 results with €21.16B in revenue (+0.8% Y/Y) and 6.9% organic EBITDA growth, while issuing bullish FY25 guidance. Deutsche Post (+10.3%) surged on Q4 revenue of €22.7B (+6.3% Y/Y) and a 12.9% EBIT increase, announcing a €2B share buyback and projecting FY25 EBIT above €6B despite macroeconomic concerns. PMI data continued to highlight economic weakness, with the Eurozone construction PMI slumping to 42.7 in February, indicating deepening contraction in the sector. France’s construction PMI plunged to 39.8, its lowest level since the pandemic, while Italy’s construction PMI slipped to 48.2, signaling a continued downturn in the sector. Investors now await the ECB’s interest rate decision later today (13:15 UTC+0), with markets pricing in a 25 basis point cut to 2.50%, marking the sixth rate reduction since June.
► US markets remained volatile, as President Trump’s temporary auto tariff exemptions helped stabilize investor sentiment, but uncertainty over broader trade policies lingered. S&P 500 futures (-1.0%) dipped sharply again, while the Nasdaq (-1.2%) showed signs of continuing declines. Commerce Secretary Howard Lutnick hinted at further trade compromises, suggesting that the US may ease tariffs on Canada and Mexico beyond autos. However, tech stocks faced renewed pressure, with Marvell Technology (-4.3%) dropping after weak AI-related revenue guidance. Broadcom (-3.5%) also fell ahead of its earnings report, as investors questioned whether AI-driven semiconductor demand could sustain its explosive growth. Meanwhile, Klarna Bank AB filed for a $1 billion US IPO, seeking a $15 billion valuation. Investors are now closely monitoring Friday’s jobs report, which will be key in shaping Federal Reserve interest rate expectations.
► Asian markets advanced mostly, buoyed by China’s continued economic stimulus measures and Trump’s decision to delay auto tariffs. Hong Kong’s Hang Seng surged 3.29%, hitting a three-year high, while China’s Shanghai Composite gained 1.17%. Beijing’s announcement of CNY 1.3 trillion (~$1.8 trillion) in ultra-long special treasury bonds to support infrastructure and demand provided a boost to investor sentiment. Meanwhile, Japan’s Nikkei climbed 0.91%, as JPY weakness (+149/USD) supported exporter stocks. Australia’s ASX 200 fell 0.57%, marking its lowest level in 10 weeks, as losses in energy and tech stocks weighed on the index. However, the AUD strengthened to $0.634, after January trade data exceeded expectations—exports rose 1.3%, while imports fell 0.3%, boosting Australia’s trade surplus to AUD 5.62 billion.
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