Futures, Dollar Drop as Trump Escalates Tariff Threats – Asia Market Wrap
Equity-index futures fell along with the dollar after President Donald Trump said he will set unilateral tariff rates within two weeks, dialing up trade tensions once again. Haven assets such as Treasuries and gold rose.
Contracts for the S&P 500 and the Nasdaq 100 dipped 0.3% as Trump said he will send letters to trading partners setting tariffs. Futures for European stocks fell 0.8% as Commerce Secretary Howard Lutnick said the European Union is likely to be among the last deals that the US completes. A gauge of the dollar slid 0.3% to touch its lowest since July 2023, with the yen and Swiss franc leading the gains against the greenback. Asian shares were flat.
Gold gained for a second day on demand for haven assets, its appeal boosted by Trump’s tariff comments. Oil dropped 0.4%, after jumping earlier Thursday on increased tensions in the Middle East.
The latest tariff threat came a day after Chinese and US officials struck a positive tone following their talks to dial down tensions. Amid US talking with countries including India and Japan to lower the levies, some investors see Trump’s comments as an effort to ramp up urgency in talks. It’s also unclear if Trump will follow through with his pledge – the president has often set two-week deadlines for actions, only for them to come later or not at all.
