Global shares retreated on Tuesday as concerns arose following President-elect Donald Trump's announcement of plans to impose new tariffs on Mexico, Canada, and China upon taking office. This news led to a decline in stock markets across Europe and Asia.
In early trading, France's CAC 40 dropped by 0.9% to 7,195.07, while Germany's DAX slipped 0.6% to 19,288.75. Britain's FTSE 100 also shed 0.5% to 8,253.24. Meanwhile, in Asia, Japan's Nikkei 225 fell by 0.9% to close at 38,442.00, Australia's S&P/ASX 200 lost 0.7% to 8,359.40, and South Korea's Kospi dipped 0.6% to 2,520.36.
On Wall Street, stocks had risen on Monday, with the S&P 500 climbing 0.3%, the Dow jumping 1% to a new record, and the Nasdaq gaining 0.3%. Treasury yields eased following Trump's announcement of his preference for Scott Bessent, a hedge fund manager, as his Treasury Secretary. Bessent's stance on reducing the U.S. government's deficit helped alleviate concerns about potential fiscal policies impacting the deficit.
The Federal Reserve, which recently began cutting interest rates, may adjust its rate cuts based on economic data. An upcoming U.S. report is expected to show an increase in underlying inflation, potentially affecting the Fed's rate decisions. The focus remains on U.S. consumer spending amid high prices and interest rates.
In commodity markets, benchmark U.S. crude rose to $69.39 a barrel, while Brent crude reached $73.88 a barrel. Currency trading saw the U.S. dollar weakening against the Japanese yen and the euro rising against the dollar.
