📆 Monday, March 17
► European markets traded cautiously higher on Monday, with the Stoxx 600 rising 0.4%. Investors focused on Germany’s upcoming vote on a €500 billion infrastructure and defense spending bill, which could have long-term economic implications. Meanwhile, UK supermarket stocks lagged, with Tesco (-2.2%) and Sainsbury (-0.7%) under pressure after Asda’s recent profit warning. Trump’s new steel and aluminum tariffs, set to take effect on April 2, added to trade concerns, while “reciprocal” tariffs on European autos, pharmaceuticals, and agriculture remained a looming risk.
► US stock futures fell on Monday, with S&P 500 and Nasdaq 100 contracts dropping 0.25% and 0.2% respectively (at times significantly deeper in the red), after Treasury Secretary Scott Bessent downplayed the recent $5 trillion stock market sell-off. His remarks reinforced expectations that the Trump administration will not intervene to support financial markets, despite growing concerns about economic fallout from tariffs. Investors are also bracing for a busy week of central bank meetings, with the Federal Reserve expected to hold rates steady (on Wednesday) while signaling its outlook for future cuts. US retail sales data due later today will provide further clues on Fed rate cut expectations, as markets assess the impact of tariffs and slowing economic growth. Meanwhile, Trump plans to speak with Russian President Vladimir Putin on Tuesday as the US pushes for a Ukraine ceasefire, adding geopolitical uncertainty to an already fragile market.
► Asian markets rose on Monday, led by gains in China and Hong Kong, as investors welcomed new stimulus measures aimed at boosting consumer spending and wages. The CSI 300 hit its highest level of the year, while Hong Kong’s Hang Seng (+ 0.77%) surged nearly 20% year-to-date. In corporate news, Baidu unveiled two new AI models, Ernie 4.5 and Ernie X1, as Chinese tech giants ramp up investments in artificial intelligence to compete with global players. In Japan, the Nikkei 225 climbed supported by slight losses of the JPY, supporting exporters. The JPY remains bullish medium-/long-term and already stabilized for today.
Subscribe to see more
