Tariffs topple stocks, no sign of 'Trump put'

Reuters

Mon, Mar 10, 2025, 10:31 PM 2 min read

A look astatine the time up successful European and planetary markets from Tom Westbrook

U.S. stocks yet caught up overnight with what currency and enslaved markets person been saying for respective weeks: A slowdown is coming.

The Nasdaq's 4% autumn was its steepest successful two-and-a-half years. Bond yields fell sharply and markets are present pricing successful a astir 50-50 probability of the Fed cutting rates successful May.

Tesla shares person halved since their post-election peaks and the dollar, which had been rising successful anticipation of Donald Trump's policies, has present begun sliding arsenic helium slaps tariffs connected his neighbours.

The alleged "Trump trade" is successful afloat retreat and the "Trump put", oregon the anticipation that helium whitethorn beryllium delicate to falls successful the banal market, is truthful acold obscurity to beryllium seen.

Citi downgraded its U.S. plus allocation recommendation, cutting stocks to "neutral" from "overweight" aft the marketplace closed, saying that for the adjacent fewer months astatine slightest it's not wide that the U.S. economy's outperformance tin continue.

Asian markets did their champion to dependable the ship, helped a spot due to the fact that it's everyplace extracurricular the U.S. that stands to payment from immoderate repatriation flows from dumped U.S. assets.

Stocks successful Tokyo, Seoul, Hong Kong and Sydney were disconnected their aboriginal lows by the afternoon, but the temper was skittish. U.S. equity futures besides fell successful aboriginal commercialized and, portion recovering their losses, are struggling to marque overmuch headway beyond flat. [MKTS/GLOB]

The country successful currency markets was quiet. The yen has been rising for weeks and inched to a caller five-month highest successful the Asia league - although, arsenic immoderate dealers noted, it's stocks catching up to the determination successful dollar/yen alternatively than the different mode around.

The euro, too, has shown small absorption to Germany's Greens promising to artifact plans for accrued subject spending, possibly successful anticipation of a compromise deal.

Key developments that could power markets connected Tuesday:

Earnings: Volkswagen, TP ICAP

Economics: U.S. Jolts

(By Tom Westbrook; Editing by Edmund Klamann)