From Financial Modeling Prep: 2025-02-03 02:18:17

Asian stock markets plummeted as President Trump announced tariffs on Canada, Mexico, and China, raising fears of a global trade war. U.S. dollar hit all-time high against Chinese yuan and other currencies, reflecting investor unease. Japanese Nikkei down 2.9%, Australian markets drop 1.8%, Hong Kong stocks slide 1.1%.

European and U.S. futures tumble with STOXX 50 futures down 2.7% and S&P 500 futures falling 2%. Investors brace for more volatility amid uncertainty over tariffs and potential retaliations. Trump’s tariffs spark responses from Canada, Mexico, and China, with threats of retaliation and challenges at the WTO.

Economists warn of inflation and stagflation risks from Trump’s tariffs, potentially impacting U.S. inflation and economic growth. Forecasted effects include reduced GDP growth, potential recessions in Canada and Mexico, and the risk of stagflation in the U.S. as prices rise and economic activity stagnates.

Global markets and key sectors face uncertainty amid trade policy shifts. Investors advised to monitor closely for potential repercussions on manufacturing, tech, and retail industries. The road ahead for global trade and markets may be challenging, with increased market volatility and potential sector reshaping in the coming months.



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