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.
For U.S. President Donald Trump, “tariffs” may be the most beautiful word in the dictionary, but it also makes investors nervous. Following Trump’s refusal to exclude Canada and Mexico from a 25% levy on all goods imported from both nations, riskier assets like equities and cryptocurrencies plummeted on Monday.
The S&P 500 has experienced its biggest market decline since December 18 and is currently challenging its 200-day moving average, which is typically regarded as a support level. Should the index break below that line, it may experience more declines. Bitcoin’s 10% rise from Trump’s declaration of establishing a U.S. strategic crypto reserve on Sunday was quickly erased as it fell below $90,000.
On the other side of the Atlantic, European leaders appear to bolster the continent’s markets by defending themselves against Trump’s advances. In February, the regional Stoxx 600 did better than the S&P 500. Additionally, the Stoxx 600 gained ground on Monday due to increased defense stocks.
However, since Trump’s tariff announcement was made after European markets had closed, investors might have a negative reaction on Tuesday when the duties are formally implemented. It is advisable to prepare for increased volatility.
What To Note Today
Tit-For-Tat Tariffs
Following a months-long suspension, U.S. President Donald Trump announced that the 25% tariffs on Canada and Mexico will go into effect on Tuesday. Prime Minister Justin Trudeau announced Monday that Canada would apply a 25% duty on 155 billion Canadian dollars ($107 billion) worth of U.S. imports on Tuesday as retaliation. On Tuesday, China also declared that it would limit shipments to 15 American businesses and impose an additional 15% tariff on American commodities, including agricultural products.
S&P Is Already Losing Money In 2025
The S&P 500 is already down in 2025 after plunging 1.76% on Monday, its worst day since December. The Nasdaq Composite fell 2.64% and the Dow Jones Industrial Average fell 1.48%. Bitcoin fell 12% to almost $82,000 in early trading in Asia. Stocks in Asia-Pacific fell on Tuesday. The Nikkei 225 in Japan fell almost 1.2%, while the Kospi index in South Korea fell 0.15%. Declines in tech and chip-related stocks, including South Korea’s SK Hynix and Japan’s Advantest, hurt both benchmarks.
Nvidia Chip-Related Arrests
Singapore’s Home Affairs and Law Minister K Shanmugam announced on Monday that three individuals were arrested late last week for wilfully falsifying the destination of servers made in the United States, which most likely contained Nvidia’s coveted chips. The servers were shipped to Malaysia. Malaysia’s minister of commerce, industry, and investment, Tengku Zafrul Aziz, told CNBC on Tuesday that authorities are unaware of any data centre firms operating in Malaysia “not using the chips that they are supposed to be using.” On Monday, Nvidia’s stock fell 8.7%.
TSMC Has Invested $100 Billion In The U.S
Trump declared on Monday that Taiwan Semiconductor Manufacturing would invest $100 billion in the United States to construct five new fabrication facilities in Arizona, describing the purchase as a “tremendous move by the most powerful company in the world.” With the additional funding, TSMC now has $165 billion invested in the US. Trump has accused Taiwan of stealing the U.S. chip manufacturing industry on numerous occasions.
Trump Halts Ukraine’s Military Aid Flow
A White House official said on Monday that Trump is stopping U.S. military assistance to Ukraine. The individual, who asked not to be identified, said that the Trump administration is evaluating U.S. aid “to ensure that it is contributing to a solution” and that the president is “focused on peace.” Trump and Ukrainian President Volodymyr Zelenskyy’s Friday meeting turned into a heated argument, and Zelenskyy left without reaching a peace agreement.
Concerns Regarding The 200-Day Moving Average
Price chart technical specialists are concerned that the S&P 500 may soon test its 200-day moving average. Analysts said Monday’s beating of the broad-based index demonstrated the precarious market setup at the beginning of a new month. Here’s why investors care about that technical level.
Other News
On Wednesday, U.S. President Donald Trump hinted that sweeping 25% tariffs would soon be applied to the European Union. It happened a week after Trump declared he was thinking of imposing a flat tax of about 25% on all chips, cars, and pharmaceutical imports. However, most pharmaceutical products and the ingredients needed to make them are exempt from tariffs, meaning they are bound at duty-free levels under the WTO’s 1994 Pharma Agreement.
However, with some output likely to be directly disrupted, German healthcare major Fresenius Medical Care reports that it has established its first-ever “tariff taskforce” to address uncertainty surrounding U.S. President Donald Trump’s proposed trade levies. In the meantime, CEO David Endicott stated that Alcon’s Swiss-American pharmaceutical business was “paying very close attention” to levies.
