European stock markets experienced losses on Monday, while Asian markets had mixed results, amid continued concerns over potential tariff changes by President Donald Trump. The DAX in Germany fell 0.6% to 22,874.88, and France’s CAC 40 dropped 0.3% to 8,098.98. Meanwhile, the FTSE 100 in Britain decreased by 0.3% to 8,653.22.
In the U.S., futures for the S&P 500 declined by 1%, and the Dow Jones Industrial Average saw a forecasted drop of 0.8%. Across Asia, China’s market faced significant setbacks. Hong Kong’s Hang Seng Index fell 1.9% to 23,783.49, and Shanghai’s Composite Index slipped by 0.2% to 3,366.16. Recently released data revealing a reduction in Chinese consumer prices highlighted ongoing economic challenges, worsened by the early Lunar New Year.
The Nikkei 225 in Tokyo, however, saw a modest rise of 0.4% to 37,028.27. Japan’s Trade Minister, Yoji Muto, is in Washington to navigate tariff discussions, seeking beneficial outcomes for both nations. “Considering the feedback from our industrial sectors, we’re aiming for mutually beneficial agreements,” Muto stated.
U.S. Commerce Secretary Howard Lutnick announced on national television that a new 25% tariff on steel and aluminum imports would begin on Wednesday. In regional markets, Australia’s S&P/ASX 200 rose 0.2% to 7,962.30, and South Korea’s Kospi increased by 0.3% to 2,570.39. Conversely, Taiwan’s Taiex fell 0.5%, India’s Sensex dropped 0.3%, and Bangkok’s SET index declined 1.7%.
Last Friday, Wall Street recovered from earlier losses, ending a turbulent week driven by apprehensions over the U.S. economic direction and the ambiguity surrounding tariff regulations. The S&P 500 rose 0.6%, reversing a sizable intra-day drop, while the Dow Jones increased by 0.5%, and the Nasdaq grew 0.7%. Despite these gains, it was the most challenging week for the S&P 500 since September, leaving it over 6% below its recent peak.
The Federal Reserve’s leader helped alleviate some market anxieties with his comments on interest rates, suggesting stability remains, and did not foresee immediate need for rate adjustments. The U.S. Labor Department also reported a growth of 151,000 jobs in the previous month, slightly under economist predictions, though still an improvement from January’s employment figures.
Concerns about Trump’s tariff policies have caused uncertainty within the business sector, affecting market sentiment and economic forecasts. The alternating phases of implementation and exemption of tariffs have left companies uncertain, potentially affecting hiring decisions. Similarly, consumers are wary of potential inflation, which could weaken spending power and economic growth.
President Trump remarked on Friday about his intentions to use tariffs to bring jobs back to the U.S., although he gave no indication of increased clarity for market stakeholders. “There will always be changes and adjustments,” Trump noted from his office.
In the oil market, U.S. benchmark crude was stable at $67.04 per barrel, while Brent crude slightly increased to $70.43 per barrel. The U.S. dollar saw a minor drop against the Japanese yen, moving to 147.24 yen from 147.94 yen, while the euro experienced a slight increase to $1.0844 from $1.0836.
