Stocks slip, dollar and gold rise amid Trump tariff threat
Asian equities and US stock index futures experienced a decline, while the dollar and gold saw gains, reflecting investor caution after President Donald Trump proposed tariffs on US imports of steel and aluminum.
A gauge of Asian equities dropped, weighed down by selling pressure for shares in Hong Kong and mainland China, News.Az reports, citing Bloomberg, News.Az reports, citing Bloomberg.
Japanese markets are closed. Contracts for the S&P 500 and Nasdaq 100 both declined as did those for the region-wide Euro Stoxx 50.
Demand for haven assets pushed an index of the dollar higher for a third consecutive session. Gold rose above $2,940 briefly to set a new high.
The moves are the latest sign investors are struggling to distinguish threat from action within Trump’s tariffs, while also gauging the potential flow-on effects for global trade, corporate earnings and inflation. While tariffs on China have gone into effect, uncertainty over more levies have sparked fresh concerns retaliatory measures will intensify a global trade war.
Trump set tariffs on steel and aluminum shipments from all countries, including major suppliers Mexico and Canada, from March 12, but said he would consider an exemption for Australia. The president earlier said he would announce reciprocal tariffs this week on countries that tax US imports.
Aside from the global trade picture, investors will also be focused on this week’s key inflation data and Fed Chair Jerome Powell’s testimony before Congress. Expected inflation rates over the next year and three years ahead were both unchanged in January at 3%, according to results of the New York Fed’s Survey of Consumer Expectations published Monday.
Elsewhere, the Indian rupee strengthened as much as 1% against the US dollar. The yen was little changed, while the pound weakened.
The whipsawing trade in Chinese equities follows a rally this year helped along by fresh demand for technology stocks that has lifted a gauge of Hong Kong tech companies around 17% this year.
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