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Markets Update: U.S. stocks fall, Treasury yields rise due to trade war worries. Trump's tariff threats on European beverages unsettle investors. The dollar weakens against the yen, but strengthens against the euro and Swiss franc.
Global Markets Roundup: 13 Mar 2025
Global stocks fell on Thursday due to a slight rise in U.S. Treasury yields, as growing trade tensions overshadowed signs of easing inflation. Investors were wary after President Donald Trump threatened to impose 200% tariffs on European beverage imports unless the EU removes surcharges on U.S. whiskey. Additionally, markets were closely watching negotiations to avert a possible partial U.S. government shutdown, adding to the uncertainty.
Inflation Eases, But Tariff Concerns Linger
Fresh U.S. inflation data provided some relief but failed to calm investor nerves. Producer prices (PPI) remained flat in February, following Wednesday’s softer-than-expected consumer price index (CPI) report, which showed inflation slowing.
However, concerns persist that tariffs could drive prices higher in the coming months, making the cooling trend short-lived.
Wall Street Declines, European Stocks Hold Up
U.S. markets were lower:
• Dow Jones Industrial Average fell 135.84 points (0.33%) to 41,212.42
• S&P 500 lost 22.11 points (0.41%) to 5,576.26
• Nasdaq Composite dropped 135.68 points (0.78%) to 17,510.56
Global equities also slid, with MSCI’s global stock index falling 0.43% to 827.27.
European stocks outperformed despite the broader market weakness:
• STOXX 600 fell just 0.01%, following a 0.81% gain the previous session
• Year-to-date, STOXX 600 is up 6.6%, while the S&P 500 is down 4.8%
Investors remain bullish on European equities, supported by government defense spending plans and progress toward a Ukraine peace deal.
Bonds Rise as Trade Risks Cloud Inflation Outlook
Despite softer inflation data, concerns over tariffs and supply chain disruptions pushed U.S. Treasury yields higher:
• 10-year Treasury yield rose 1.2 basis points to 4.328%
• 30-year bond yield climbed 1.2 basis points to 4.6433%
• 2-year yield, which reflects Fed rate expectations, dipped 0.2 basis points to 3.993%
Dollar Mixed as Investors Seek Safe Havens
The U.S. dollar showed mixed performance, reflecting the uncertainty:
• Euro EURUSD fell 0.25% to $1.0859
• Dollar weakened 0.22% to 147.91 yen USDJPY
• Dollar strengthened 0.25% to 0.884 Swiss francs
Oil Dips, Gold Nears Record High
Oil prices, which surged on Wednesday due to a larger-than-anticipated decrease in U.S. gasoline inventories, slipped as traders considered demand risks linked to the trade conflict:
• U.S. crude decreased by 0.55% to $67.31 per barrel
• Brent crude declined by 0.51% to $70.59 per barrel
Meanwhile, gold remained close to record highs, supported by persistent trade uncertainty and expectations of a Federal Reserve rate cut:
• Spot gold increased by 1.26% to $2,968.99 an ounce
• U.S. gold futures went up 0.94% to $2,966.60 an ounce
In agricultural commodities, The most-active corn contract on the CBOT ZC1! increased by 6-1/4 cents to $4.67 a bushel. CBOT soybeans ZS1! rose by 13-1/2 cents to $10.14 a bushel, and CBOT wheat ZW1! climbed 7-1/2 cents to $5.61-1/2 a bushel. CC1! May ICE NY cocoa (CCK25) is down -191 (-2.29%) today, and May ICE London cocoa #7 (CAK25) is down -141 (-2.17%). Cocoa prices, which initially rose, have declined due to the prospect of a global cocoa surplus.
Amid tariff tensions, inflation risks, and possible Fed rate cuts influencing the outlook, investors are preparing for increased volatility in the coming weeks.
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