Oil jumps above US$107 as Asia sells off, Fed and BOJ rate decisions now collide with a fresh energy shock Markets are opening the week under renewed pressure. Brent crude has jumped about 3% to above US$107 , Asian equities are falling sharply, and U.S. Treasury yields remain close to 5%. At the same time, investors are preparing for possible rate hikes from both the Federal Reserve and Bank of Japan this week . For investors, the central question has become: Can central banks contain inflation without causing a much larger slowdown when energy prices are surging at the same time? 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,656.98, +0.86% Friday 🇺🇸 Dow Jones +0.98% Friday 🇺🇸 Nasdaq +0.96% Friday 🇲🇾 FBM KLCI 1,686.74, -1.10% Friday 🇯🇵 Nikkei -1.7% Monday morning 🇰🇷 Kospi -3.3% Monday morning 🌏 MSCI Asia ex-Japan -0.8% 🛢️ Brent crude ~US$107.36, +2.6% 🛢️ WTI crude ~US$102.48, +2.4% 🇺🇸 U.S. 10Y Treasury ~4.97% 🥇 Gold ~US$4,336...
The US dollar rallied while European stocks tumbled on Tuesday after President-elect Donald Trump announced sweeping tariff plans targeting imports from Mexico, Canada, and China.
Market Impact
Currencies Under Fire
Trump’s Tariff Plan
Sweeping Tariffs Announced:
Other Market Moves
Market Impact
- The STOXX 600 fell 0.7%, led by automakers such as Volkswagen and Stellantis, which dropped between 2.6%-5%.
- The threat of tariffs on the European Union added pressure, with traders anticipating the EU could be next.
- S&P 500 futures eased 0.1%, following Monday’s 0.3% gain.
Currencies Under Fire
- The dollar surged 2.3% to 20.75 pesos and climbed 1% to C$1.4139, reflecting investor fears that Mexico would bear the brunt of Trump’s tariffs.
- Offshore yuan weakened to 7.2674 per dollar, its lowest since late July.
- The euro fell 0.1% to $1.04838, while the British pound eased 0.2% to $1.2548.
Trump’s Tariff Plan
Sweeping Tariffs Announced:
- 25% tariffs on all goods from Mexico and Canada.
- An additional 10% tariff on Chinese imports.
- The measures are aimed at combating illegal immigration and drug trafficking.
- “The dollar’s move higher makes sense as markets digest Trump’s timing,” said Sean Callow of ITC Markets.
- Analysts warn of increased uncertainty, with policy surprises likely to become routine.
Other Market Moves
- Slipped 1% to $92,781, cooling further from last week’s record high of $99,830.
- Fell to a one-week low of $2,604.99, pressured by the dollar’s strength.
- Brent crude rose 0.6% to $73.41, while WTI crude climbed 0.45% to $69.25, as investors monitored developments in a potential Israel-Hezbollah ceasefire.
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