This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
The White House’s ever-changing trade policy declarations have confused investors, but a softer-than-expected U.S. inflation report gave them some respite. Additionally, if inflation keeps declining, the U.S. Federal Reserve will have leeway to lower interest rates if the economy appears to be about to collapse.
Alec Kersman, managing director and head of Asia-Pacific at Pimco, stated on CONVERGE LIVE in Singapore that while most analysts are not now predicting a recession, the likelihood of one occurring in the United States is higher than last year.
Nevertheless, on Wednesday, U.S. President Donald Trump imposed 25% tariffs on all imports of steel and aluminium, regardless of their nation of origin. Trade partners have already reacted in kind. Such taxes can potentially slow down the world economy or change its structure so that the United States is no longer at its core.
What To Note Today
February’s Inflation Slows Down
The U.S. Bureau of Labour Statistics said Wednesday that the annual inflation rate was 2.8% after the U.S. consumer price index increased by a seasonally adjusted 0.2% for February. The core CPI, which excludes the cost of food and energy, increased by 0.2% monthly and reached its lowest level since April 2021 at 3.1% on a 12-month basis. A Dow Jones survey of economists predicted all data to be 0.1 percentage points higher.
A Heated Tariff Battle
At a press conference on Wednesday, Canadian Finance Minister Dominic LeBlanc said that Canada would levy 25% tariffs on over $20 billion worth of U.S. goods. In addition to the 25% counter-duties Canada placed on the United States on March 4, the tariffs will go into effect on Thursday. Separately, political and corporate figures warned about Trump’s tariffs, including former British Prime Minister David Cameron and Bridgewater CEO Ray Dalio.
Intel’s New Chief Executive
On Wednesday, Intel announced the appointment of Lip-Bu Tan as its new CEO. After former Intel CEO Patrick Gelsinger was fired in December, Tan will succeed temporary co-CEOs David Zinsner and MJ Holthaus. Before this, Tan served as CEO of Cadence Design Systems, a software company that supplies all major chip designers, including Intel. In extended trading, the chipmaker’s stock surged up to 12%.
Most Benchmarks End A Losing Run
Following positive inflation data on Wednesday, U.S. markets largely recovered. The Nasdaq Composite gained 1.22%, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 increased 0.49%. Even though the nation’s budget deficit skyrocketed to $1 trillion in February, former U.S. Treasury Secretary Steven Mnuchin stated on Wednesday that “a natural, healthy correction” of equities does not mean that “the economy is in trouble.” Thursday saw uneven trading in Asia-Pacific markets. As investors evaluate Canadian convenience store operator Alimentation Couche-Tard’s news conference regarding its proposed takeover of the company, shares of Seven & i Holdings surged as high as 3.6%.
Tesla Stock Might Fall By 50%, According To Analysts
Due to increased brand boycotts and protests worldwide, JPMorgan predicted that Tesla’s stock would decline even further. Ryan Brinkman, an analyst, lowered his price objective for the stock from $135 to $120, indicating a 52% decline in shares from Wednesday’s finish of $248.09. Here are the reasons behind his gloomy assessment of Elon Musk’s electric car business.
Other News
With Canada’s top oil producer threatening to diversify its exports away from the U.S. if President Trump’s tariff threats continue, the highly integrated North American oil and gas market is at a crossroads.
