US, European Futures Slide as Trump Hits EU and Mexico With New Tariffs – Asia Market Wrap
Equity-index futures for the US and Europe retreated in a cautious start to the week after President Donald Trump dialed up trade tensions by announcing a 30% tariff on goods from the European Union and Mexico.
Contracts for the S&P 500 fell 0.4% while those for European stocks dipped 0.6%. Asian shares were flat, with small gains in Hong Kong and mainland China. Silver gained to trade near the highest level since 2011. Bitcoin soared past $120,000 for the first time, gaining almost $14,000 this month. A gauge of the dollar inched up while yields on the 10-year Treasury rose almost 1 basis point to 4.42%.
Trump’s latest tariff threats are testing the market’s resilience after the US leader ratcheted up trade measures on everyone from Canada to Brazil to Algeria last week. Despite warnings of complacency, investors have so far behaved as if they’re counting on the president to back down, having seen previous U-turns from his administration. The S&P 500 and the MSCI All Country World Index both hit records this month.
The EU had been trying to conclude a tentative deal with the US to stave off higher tariffs, but Trump’s letter punctured the recent optimism in Brussels. The US president did, however, leave an opening for additional adjustments. The EU is now preparing to step up its engagement with other countries hit by Trump’s tariffs, according to people familiar with the matter.
