The dollar surged while equity markets and digital currencies plunged after US President Donald Trump made good on his threat to impose tariffs on imports from Canada, Mexico and China. European and US stock futures slumped, while an index of Asia-Pacific shares dropped the most in nearly six months in response to the punitive measures taken against some of America’s biggest trading partners. Fears the action will stoke price pressures also spurred a rise in the yields on two-year US Treasuries. The selloff ricocheted across asset classes on Monday, with traders also slashing positions in a range of tokens that had benefitted from Trump’s pro-crypto statements. The euro extended its decline after he said tariffs on EU goods would “definitely happen.” The rapid escalation in tensions constitutes the most extensive act of protectionism taken by a US president in almost a century, given its knock-on effect on everything from inflation to geopolitics and economic growth. Trump said he plans talks on Monday with Canada and Mexico ahead of the tariffs coming into force. The levies are set to take effect Feb. 4, barring a last-minute deal. Driving the rally in the dollar is the expectation that tariffs will fuel inflationary pressures and keep US interest rates elevated, while also hurting foreign economies more than the US and adding to the greenback’s safe-haven lure. Haven bets fueled a drop in the yield of 10-year US Treasuries, while the Canadian dollar sank to its weakest since 2003. Emerging market currencies such as the Indian rupee and the Mexican peso also posted losses. Traders are on alert for big swings in assets that are considered at the front lines of any trade war. While that should include China, Hong Kong’s share market reopened after a multi-day holiday and declined less than those of Japan, South Korea and Taiwan. Mainland China’s share market reopens on Wednesday. For foreign exchange traders, the fix on China’s yuan will be key for signs of how much officials will try to slow its decline. China is eager to get trade talks going and is readying an opening bid to try to head off greater tariff increases and technology restrictions, the Wall Street Journal reported. Offshore yuan pared losses after the report. In response to the US announcement, Canadian Prime Minister Justin Trudeau unveiled a 25% counter-tariff, while Mexican leader Claudia Sheinbaum pledged retaliatory levies. China’s Commerce Ministry issued a statement vowing “corresponding countermeasures,” without elaborating, and vowed to file a complaint to the World Trade Organization.
Nikkei -2.66% Hang Seng -0.46% CSI -0.41% Shanghai -0.06% Shenzen -1.30%
Eur$ 1.0251 CNH 7.3374 CNY 7.2446 JPY 155.39 GBP 1.2292 CHF 0.9156 RUB 98.6867 TRY 35.9310 WTI$ 73.92 +1.90% Gold 2,787.86 -0.42% BTC 94,221 -2.88% ETH 2,519 -13.30%
S&P -1.92% Nasdaq -2.42% EuroStoxx -2.42% FTSE -1.43% Dax -2.10% SMI -1.80%
Macro :
- Tariff War Likely to Plunge Canada Into Recession
- Euro’s Losses Show Worries Where Tariffs Will Go Next
- JPMorgan Plans $4B Gold Delivery Amid Tariffs: Financials Wrap
- JPMorgan Plans $4B Gold Delivery Amid Tariffs: Financials Wrap
- Bosch Sees Economy Sluggish in 2025, Hints at Cuts
- German Frontrunner Merz Suffers Blow With Migration Bill Defeat
- Moscow Has $2 Billion Stuck at JPMorgan. The U.S. Isn't Sure What to Do With It. -- WSJ
- US Aluminum Industry Urges Trump to Exempt Canada From Tariffs
Keep an eye on :
Keep an eye on :
- AA US : US Aluminum Industry Urges Trump to Exempt Canada From Tariffs
- AAL LN : Botswana, De Beers Agree to Extend Debswana’s Mining Licenses
- Ardian : Ardian Said to Weigh Sale of French Quality Control Firm Trigo
- AAL LN : Diamond-Dependent Botswana Needs Economic Reset, New Leader Says
- Ardian : Ardian Said to Weigh Sale of French Quality Control Firm Trigo
- AAL LN : Diamond-Dependent Botswana Needs Economic Reset, New Leader Says
- AZN LN : AstraZeneca rejected close to £80mn in state support for cancelled Speke factory
- BHP LN : Trump Says He Will Also Put Tariffs on Copper
- BT/A LN : Cordiant Digital in Talks to Acquire BT Ireland Assets: Times
- BT/A LN : Sunil Mittal to Meet With BT Mgmt on Strategy This Week: FT
- CVC NA : CVC Looks to Acquire a Private Credit Firm, FT Reports
- DGE LN : Diageo sales hangover leaves investors with a headache - FT
- DOV IM : DoValue Greece Unit Gets Servicing Mandates for €2.3B
- SMDS LN : INTL Paper Closes Purchase of DS Smith
- GALP PL :
- G IM : UniCredit Said to Have Bought Less Than 4% Stake in Generali
- G IM : UniCredit Says It Holds Equity Stake of About 4.1% in Generali
- IDR SM : Indra Sees Space Unit to Reach At Least €1B Revenue in 2030
- BAER SW ! Julius Baer Shrinks Executive Board in Bollinger’s First Move
- BAER SW : Julius Baer to Cut Around 400 Jobs in Switzerland
- LI US : Li Auto Jan. Vehicle Deliveries 29,927 Units Vs. 31,165 Y/y
- MB IM : Paschi Takeover Could Be Negative for Mediobanca, Moody’s Says
- NIO US : NIO Inc. Jan. Deliveries 13,863 Vs. 31,138 M/M
- NOKIA FH : Infinera Says Nokia Merger Expected to Be Completed During 1Q
- OMV AV : OMV, Adnoc Considering Possible Nova Chemicals Acquisition by JV
- OR FP : L’Oréal to Sell ~29.6M Sanofi Shares to Sanofi for €101.5/Shr
- P911 GY : Porsche in Talks to Oust Chief Financial Officer, Sales Head
- RED SM : Indra to Buy ~90% of Hispasat From Redeia for EU725m
- SAN FP : L’Oréal to Sell ~29.6M Sanofi Shares to Sanofi for €101.5/Shr
- SCTS SS : Scandi Standard Buys Tyson Foods’ Dutch Manufacturing Assets
- SBX NO : SeaBird Signs LOI to Merge With Energy Drilling in Share Deal
- SN/ LN : Smith & Nephew: Stryker Q4 results read across
- 9984 JP : OpenAI’s Altman to Meet Japan PM, SoftBank’s Son on Monday
- SONO US : Sonos sounds warning note over software-isation of everything - FT
- STLAM IM : Stellantis Managers to Step Down as Part of Shakeup
- TIP IM : Tamburi Mulling Merger or IPO of Alpitour, Repubblica Reports
- UCG IM : UniCredit Bought Stake in Generali of 4% to 5%, Sole Reports
- UCG IM : UniCredit Says It Holds Equity Stake of About 4.1% in Generali
- ULVR LN : Unilever Weighs New York as Venue for Ice Cream Unit Listing
-VRLA FP : Brazil’s Moreira Salles Family Considering Buyout of Verallia
- VOW GY : Volkswagen sues India to quash 'enormous' $1.4 billion tax demand, legal filing shows