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Markets Update: Asian markets tumble on escalating U.S. trade war concerns. Trump’s comments stoke recession fears, risk sentiment deteriorates. Safe-haven yen and Swiss franc strengthen; U.S. and European futures steady.
Global Markets Roundup: 11 March 2025
Asian stocks plunged on Tuesday, extending a global selloff as concerns grew over a potential U.S. economic slowdown fueled by President Donald Trump’s aggressive trade policies. Investors, rattled by the prospect of a prolonged trade war-driven recession, piled into safe-haven assets like the yen and Swiss franc, while U.S. and European stock futures stabilized.
Markets in Turmoil Amid Recession Worries
Trump, in a Fox News interview, described the U.S. economy as being in a “period of transition” but refused to predict whether his tariffs on China, Canada, and Mexico would lead to a recession. His comments further unnerved investors, compounding fears that the White House remains committed to its protectionist policies despite growing economic cracks.
In Asia, markets took heavy losses:
Japan’s Nikkei hit its lowest level since September
Taiwan’s TAIEX followed suit, dropping sharply
Australia’s ASX 200 closed 0.8% lower, having touched a seven-month low earlier
China’s blue-chip CSI300 index fell 0.5%, while the Hang Seng Index in Hong Kong lost 1%
The downturn followed Monday’s brutal session on Wall Street, where the S&P 500 sank 2.7%—its worst drop of the year—and the Nasdaq tumbled 4%, marking its biggest single-day percentage decline since September 2022. A wave of selling has erased $4 trillion in market value from the S&P 500 since its peak last month.
Futures Attempt to Stabilize
Despite the turmoil, U.S. stock futures pared earlier losses:
S&P 500 and Nasdaq futures ticked higher ahead of the European open
European stock futures also stabilized, pointing to a steadier start
Bonds, Fed Expectations, and CPI Watch
The 10-year U.S. Treasury yield fell 2 basis points on Tuesday, following a 10-bps plunge the previous session, the biggest one-day drop in almost a month. The 2-year Treasury yield, which reflects Fed rate expectations, dropped to a five-month low, falling 1.5 bps to 3.8808%.
Traders have now increased bets on 85 basis points of Fed rate cuts this year, up from 75 bps on Monday, as weakening U.S. growth raises pressure on the central bank to ease policy.
However, Wednesday’s U.S. inflation report could shift market expectations if it signals inflation remains stubbornly high. January’s CPI data, which showed a 0.5% rise—the largest since August 2023, shook markets last month. February’s CPI is forecast to increase 0.3%, according to a Reuters poll.
Safe Havens Surge, Dollar Slumps
The Japanese yen hit a five-month high against the dollar before pulling back to trade flat at 147.35 per dollar. The yen is up 7% in 2025 as investors seek stability. The Swiss franc also climbed, hovering near a three-month high, last trading at 0.8791 per dollar. The U.S. dollar index (DXY) held near a four-month low, having lost 4% year-to-date.
Oil Holds Steady, Gold Near Record Highs
Crude oil prices remained flat, as traders balanced weaker economic outlooks from Trump’s tariffs against OPEC+ supply adjustments:
Brent crude traded at $70.70 per barrel
West Texas Intermediate (WTI) crude held at $67.55 per barrel
Gold prices rose to $2,895.75 per ounce, inching closer to last month’s record high. The metal is up 10% in 2025, following a 27% surge in 2024, as investors seek a safe-haven hedge against economic uncertainty.
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