Morning Note: Today's Market News

Market News

A global sell-off in equities extended into a third day as concerns about upcoming US tariffs and a widening trade war weighed on investor risk appetite. Gold jumped to a record $3,080 an ounce on demand for safe havens. Cryptocurrencies also retreated and yields on the 10-year US Treasury fell slightly to 4.33%.

President Trump recently announced 25% tariffs on foreign-made cars and auto parts, prompting retaliation threats from the European Union and Canada and fuelling fears of a broader trade dispute and global economic fallout.

Meanwhile, traders will closely monitor the upcoming US PCE data for insights into the Federal Reserve’s monetary policy. Susan Collins said it’s “inevitable” that tariffs will boost inflation, adding it’s probably appropriate to keep rates steady for longer. Tom Barkin noted that “instability” caused by Trump’s rapid policy changes has had a chilling effect on businesses and sentiment.

The decline in US equities last night – S&P 500 (-0.3%); Nasdaq (-0.5%) – extended across Asia this morning: Nikkei 225 (-1.8, with automakers under pressure); Hang Seng (-0.7%); Shanghai Composite (-0.8%). The yen climbed after Tokyo CPI accelerated. Xi Jinping met with business leaders including FedEx’s Rajesh Subramaniam, Standard Chartered’s Bill Winters, and Sanofi’s Paul Hudson in Beijing.

The FTSE 100 is currently little changed at 8,663. Core retail sales rose by 2.2% in February, versus +0.4% forecast. Sterling trades at $1.2950 and €1.2010.

Keir Starmer will announce a more than £2bn transport and infrastructure package for the North of England today. Home builders are telling shareholders they don’t expect to meet the government’s targets.

Source: Bloomberg