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Markets Update: Wall Street futures decline as Trump does not dismiss the possibility of recession risks. China's consumer prices decrease at the quickest rate in 13 months. U.S. Treasury yields fall; oil prices increase amid trade war uncertainty.
Global Markets Roundup: 10 March 2025
Global stocks fell on Monday as China’s deepening deflationary pressures and U.S. trade policy uncertainty rattled markets. Wall Street futures pointed to a lower open, extending last week’s losses, while European and Asian markets also struggled.
Markets on Edge Amid Policy Uncertainty
U.S. stock futures slid, reflecting investor unease:
Dow E-minis fell 1.12%
S&P 500 E-minis dropped 1.37%
Nasdaq 100 E-minis lost 1.65%
Global stocks, measured by MSCI’s world index, declined 0.3%, reaching their lowest level in nearly two months. European shares approached monthly lows, with the STOXX 600 falling as much as 1%. Market volatility surged, with Europe’s V2TX index hitting a four-month high above 26 points.
Investors hesitated to take strong positions as they awaited developments in both European defense financing talks and U.S. monetary policy signals from Federal Reserve Chair Jerome Powell, who is scheduled to speak on the U.S. economic outlook.
China’s Deflation and Economic Slowdown
Data showed China’s consumer price index (CPI) declined at its sharpest pace in 13 months, while producer price deflation persisted, raising fresh concerns about weakening consumer demand in the world’s second-largest economy.
Chinese markets struggled:
CSI300 Index fell 0.4%
Shanghai Composite Index edged down 0.2%
Hong Kong’s Hang Seng Index tumbled 1.9%
In response, Beijing pledged further stimulus, including measures to boost consumption and invest in artificial intelligence, as the National People’s Congress meeting kicked off.
Trump’s Trade War Sparks Market Jitters
Trade tensions escalated after President Donald Trump refused to rule out the possibility of a U.S. recession in an interview with Fox News. He also suggested that reciprocal tariffs on Canadian dairy and lumber could be imminent, marking another unpredictable shift in trade policy. The latest U.S. jobs report, the first under Trump’s second term, showed fewer-than-expected payroll additions in February, fueling economic concerns.
Currencies, Bonds
The yen strengthened as investors sought safe-haven assets, with USD/JPY falling 0.7% to 146.975 per dollar. The euro EURUSD held steady at $1.0841, while the dollar index DXY remained flat at 103.79.
Bond yields fell as investors braced for potential economic disruptions:
U.S. 10-year Treasury yield dropped 7 basis points to 4.2474%
U.S. 2-year Treasury yield declined 6 basis points to 3.945%
Germany’s 10-year Bund yield fell amid ongoing fiscal policy shifts
Sanctions on Russia and Cryptocurrency Volatility
Trump hinted at sweeping sanctions on Russian banks and tariffs on Russian goods to pressure Moscow into ending the war in Ukraine. Meanwhile, Bitcoin slumped 7.2%, hitting a monthly low of $80,085.42, before recovering slightly to $82,982. The decline followed disappointment over Trump’s executive order on a strategic cryptocurrency reserve, which ruled out new Bitcoin purchases.
Commodities
Crude prices climbed despite trade war fears:
Brent crude rose 44 cents to $70.70 per barrel
U.S. West Texas Intermediate (WTI) crude gained 51 cents to $67.55 per barrel
Spot gold GOLD decreased by 0.3% to $2,902.04 per ounce, following a 2% increase the previous week. U.S. gold futures GOLD dropped 0.2% to $2,908.00.
Chicago Board of Trade's most-active soybeans ZS1! decreased by 0.2% to $10.23 per bushel, while corn ZC1! increased by 0.5% to $4.71-3/4 per bushel, and wheat ZW1! went up 1.5% to $5.59-1/2 per bushel.
With global markets on edge, investors await further clarity on trade policies, central bank direction, and economic data that could determine the trajectory of the economy in the months ahead.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team