📆 Monday, March 10
► European stocks opened positively but quickly lost momentum as U.S. trade tensions and weak Chinese inflation data weighed on sentiment. The Stoxx 600 (-0.5%), DAX (-0.7%), and CAC (-0.5%) all lost their gains and turned red, reflecting growing economic uncertainty. Germany’s trade surplus dropped to €16 billion, missing expectations of €21 billion strongly, as exports declined while imports rose to a 16-month high. Meanwhile, investors braced for geopolitical developments, with U.S. officials set to meet their Ukrainian counterparts this week. Defense stocks outperformed, supported by rising European military spending, while banking stocks dragged the index lower.
► U.S. equity futures fell, extending last week’s losses, as investors grappled with slowing job growth, trade war fears, and an uncertain Federal Reserve outlook. The S&P 500 futures dropped 0.9%, while the Nasdaq (-1%) also traded lower ahead of key inflation data releases later this week. Treasury yields declined, reflecting a shift to safer assets, while the USD hovered near its lowest level since November. Fed Chair Powell reaffirmed no urgency to cut interest rates, adding to investor caution. Major tech stocks, including Apple (-1.0%), Nvidia (-2.2%), Amazon (-1.27%), Broadcom (-1.2%). Meta (- 1.7%) etc. continued to see premarket weakness.
► Asian equities declined as China’s consumer inflation fell 0.7% YoY (below -0.5% expected), marking the first negative reading in over a year, while producer price deflation persisted for the 29th straight month. The Shanghai Composite (-0.15%) and Shenzhen Component (-0.17%) slid, as investors worried about China’s economic slowdown and lack of stimulus momentum. Hong Kong’s Hang Seng Index (-1.85%) saw broad-based losses, particularly in technology stocks. Moreover, China announced 100% tariffs on Canadian agricultural imports, further escalating trade tensions, hitting back after Ottawa slapped import duties on Chinese-made electric vehicles and steel and aluminum products. Japan’s Nikkei 225 (+0.34%) bucked the trend, recovering from previous session declines on improved domestic sentiment.
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