Global Markets:
- Asian Stock Markets : Nikkei down 1.30%, Shanghai Composite down 0.30%, Hang Seng down 0.12% ASX down 0.69%
- Commodities : Gold at $4702.59 (2.33%) Silver at $94.145 (6.33%), Brent Oil at $63.96 (0.03%), WTI Oil at $59.30 (-0.22%)
- Rates : US 10-year yield at 4.263, UK 10-year yield at 4.4170, Germany 10-year yield at 2.8402
News & Data:
- (CAD) CPI m/m -0.2% to -0.4% expected
Markets Update:
Asian stock markets are trading mostly lower on Tuesday, pressured by weak cues from European markets and a lack of direction from Wall Street, which remained closed overnight. Sentiment has been dented by escalating geopolitical and trade tensions following U.S. President Donald Trump’s announcement of a new 10 percent tariff on European countries starting February 1, along with renewed rhetoric on acquiring Greenland. Asian markets had already closed mostly lower on Monday.
Reports indicate the European Union is considering retaliatory measures, including tariffs on up to €93 billion worth of U.S. goods or restrictions on U.S. companies’ access to the EU market. There are also concerns that tariffs could be raised to 25 percent by June 1 if the standoff continues. France has urged the EU to activate a so-called “trade bazooka,” which could significantly limit U.S. access to European markets.
In Australia, the stock market is extending losses, with the benchmark S&P/ASX 200 slipping below the 8,850 level amid broad-based weakness led by financial and mining stocks. Major miners and banks are trading lower, while most energy and technology stocks are also under pressure, despite selective gains in a few names.
Japanese equities are also sharply lower, with the Nikkei 225 falling more than 1 percent in the morning session as exporters and technology stocks decline. Elsewhere in Asia, most regional markets are modestly lower, though Indonesia is trading higher.
In currency markets, the Australian dollar is hovering around $0.671, while the U.S. dollar is trading in the higher 157-yen range.
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