📆 Tuesday, March 11
► European equities were mixed on Tuesday after the previous session’s global (but US lead) tech-driven selloff. The Stoxx 600 (-0.5%) hovered near a one-month low, with travel and leisure stocks (-1.6%) and healthcare (-1.2%) leading declines. German equities gained (DAX + 0.25%) ground as the EUR strengthened (+0.6%) amid optimism that lawmakers will reach a deal on increased defense spending. However, Germany’s Greens vowed to block infrastructure spending plans unless climate and economic policies were included. In corporate news, Volkswagen (+3.2%) rose after forecasting a slight increase in its 2025 profit margin, lifting the automobile sector (+0.9%).
► U.S. stock futures are little changed on Tuesday morning, recovering from Monday’s rout where the S&P 500 (-2.7%) and Nasdaq 100 (-3.8%) posted their worst declines in years, driven by a collapse in megacap tech stocks. Currently the S&P 500 and Nasdaq 100 are up 0.1% and 0.25% higher, respectively. Tesla (-15%) collapsed, dragging down AI and semiconductor stocks, with Nvidia falling to its lowest since April. The “Trump trade” is unraveling, as tariffs on Mexico, Canada, and China raise recession fears, and the Federal Reserve remains hesitant to cut rates. Bond yields rebounded after a sharp drop, while Citigroup downgraded U.S. equities to neutral, favoring China instead. Traders now focus on this week’s U.S. inflation data, which could influence Fed policy expectations.
► Asian stocks attempted to stabilize after early losses, but recession fears and tariffs kept sentiment fragile. Japan’s Nikkei (-0.32%) sank to five-month lows after Q4 GDP growth was revised lower to 2.2%, as private consumption stalled. China’s Shanghai Composite (+0.32%) and Hong Kong’s Hang Seng (-0.01%) as we saw record inflows from mainland investors. China’s Two Sessions meeting concluded, with policymakers increasing fiscal stimulus to 4% of GDP and issuing ¥1.3 trillion in long-term bonds to support economic growth.
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