03/02/2025 Daily Reports
Trump’s Tariff Shock: Markets React with Dollar Surge and Stock Selloff
- The US dollar strengthened as global stocks and cryptocurrencies declined after President Donald Trump implemented tariffs on imports from Canada, Mexico, and China.
- US and European stock futures dropped sharply, with Asia-Pacific equities experiencing their biggest decline in six months.
- Concerns over rising inflation pushed two-year US Treasury yields higher.
- The Canadian dollar weakened to its lowest level since 2003, while emerging market currencies such as the Mexican peso and Indian rupee also fell.
- Bitcoin declined by 3.1 percent, while Ethereum saw a more significant drop of 14 percent.
- US crude oil prices rose as tariffs on Canadian and Mexican imports threatened to disrupt North America’s energy marke
What’s Next? - The implementation of these tariffs marks one of the most significant protectionist moves by a US president in nearly a century.
- Market participants are now assessing the potential impact on inflation, economic growth, and global trade relationships.
- While some investors may view the strong dollar as a sign of confidence, others remain concerned about increased volatility and uncertainty in financial markets.
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Dollar Surges, Stocks Plunge as US Tariffs Spark Global Trade War
- Global markets tumbled as the US imposed sweeping tariffs on Canada, Mexico, and China, with President Trump warning of additional levies on Europe.
- The Bloomberg Dollar Index surged to a near two-year high, while the Canadian dollar hit its lowest level since 2003.
- The euro weakened, but the yen gained as a safe-haven asset.
- S&P 500 futures fell 1.6%, European automakers slumped over 5%, and oil prices jumped amid supply concerns.
- Investors fear tariffs will fuel inflation, slow economic growth, and dent corporate earnings, with some analysts predicting a 5-10% market drop.
- Emerging markets also took a hit, with the Mexican peso and South African rand weakening.
- Meanwhile, gasoline futures soared over 6% as energy markets braced for higher costs.
