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 doubled tariffs on its northern neighbor’s steel and aluminium imports to 50% at one point during a contentious but short-lived tariff dispute with Canada. This was in reaction to Ontario Premier Doug Ford’s announcement that he would raise electricity exports to the United States by 25%.
However, cooler heads won out, and the trade war has been put on hold. Even after the deal, investors sold off their stocks because they were uneasy about the ongoing tariff ruction, which caused the S&P 500 to drop into correction territory throughout the trading session.
What To Note Today
Markets Continue To Decline
At its lowest points during the trading session on Tuesday, the S&P 500 fell 0.76% and was 10% below its record closing. The Nasdaq Composite fell 0.18% and the Dow Jones Industrial Average fell 1.14%. On Wednesday, Asia-Pacific markets saw uneven trading. The Nikkei 225 in Japan increased by about 0.07% as Nissan Motor’s stock increased by 0.6% on the announcement that CEO Makoto Uchida would leave his post on April 1. Amid rising yields on the nation’s 10- and 30-year government bonds, China’s CSI 300 dropped 0.35%.
American CPI Forecasts
The U.S. consumer price index for February, which is released on Wednesday, is expected to rise by 0.3% for a wide range of goods and services. This forecast is accurate for the core index, which does not include the volatile prices of food and energy and the all-items measure. That would result in headline inflation of 2.9% and a core reading of 3.2% annually, which would be 0.1 percentage points lower than in January.
Bargaining
The European Union responded to U.S. President Donald Trump’s 25% import tax on steel and aluminium on Wednesday by announcing that it would slap counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods beginning in April. Following Canada’s suspension of a proposed 25% tax on power exports to the United States, Trump withdrew plans on Tuesday to increase tariffs on Canadian steel and aluminium imports to 50%.
Ukraine Will Accept A Cease-Fire If Russia Agrees
According to officials, Ukraine agreed Tuesday to an immediate 30-day truce mediated by the United States, if Russia agrees to the plan. The U.S. promptly lifted its hold on intelligence sharing and started security assistance with Ukraine, which Russia invaded more than three years ago, as part of the strategy. While in Jeddah, Saudi Arabia, Secretary of State Marco Rubio declared, “Ukraine is ready to start talking and stop shooting.”Â
Below the critical level, the S&P 500 shuts
The S&P 500 has fallen below a crucial technical level due to this week’s sell-off, raising fears that a long-term decline may begin. Here’s why market analysts believe the move could limit more potential in 2025, which will probably be characterized by choppy, sluggish movement following the previous two calendar years’ bull run.
Other Reports
In an exclusive interview with CNBC, Alex Zhavoronkov, the CEO and creator of Insilico, an artificial intelligence drug discovery business, said that DeepSeek was released in late January, at a time when the company was completing a $110 million series E fundraising round led by Hong Kong-based Value Partners.
Zhavoronkov added that many Chinese funds wanted to join Insilico’s investment at the last minute, “like an avalanche,” because of the excitement around DeepSeek. The company is preparing a series of “E2” raises. “This level of interest has never been seen before.”
On Monday, he stated, “It appears to be the DeepSeek moment, which generated a lot of interest from international investors to invest in China. I believe the funding will return.”
