Global Markets Mostly Decline Amid Rising Recession Fears
πΊπΈ S&P 500 Index: -2.68% π
πΊπΈ Nasdaq Index: -3.99% π
πͺπΊ Stoxx 600 Index: -1.29% π
π―π΅ Nikkei 225 Index: +0.38% π
ππ° Hang Seng Index: -1.85% π
π¨π³ CSI 300 Index: -0.39% π
πΈπ¬ Straits Times Index: -0.39% π
The U.S. market saw broad declines on Monday, with the S&P 500 falling by 2.7% and the Nasdaq Composite dropping 4.0%. Ongoing tariff disputes and concerns over a potential U.S. federal government shutdown have heightened fears of a recession in the U.S. economy.
Germany's industrial production grew by 2.0% month-on-month in January, exceeding expectations, but exports declined by 2.5% year-on-year, highlighting challenges for the new government.
Asian markets mostly closed lower, with Hong Kong's Hang Seng Index and China's CSI 300 Index dropping by 2.0% and 0.4%, respectively, as investors worried about deflation following China's report of declining consumer prices.
In January 2025, Japan's nominal wages grew by 2.8% year-on-year, down from December's 4.4% growth and below the expected 3.2%. This marks the lowest reading in three months.
Upcoming Events
Tuesday: U.S. to release JOLTS job openings data, Malaysia to announce its unemployment rate, and Japan to publish its final GDP growth rate for the quarter.
Wednesday: U.S. to release year-on-year CPI and core CPI data, while China will publish new renminbi loan figures.
Thursday: U.S. to release core PPI and PPI month-over-month data, along with unemployment claims.
Friday: U.S. to announce the preliminary Michigan Consumer Sentiment Index.
Things to Know Today
1. A significant shift in Germany's fiscal policy is reshaping global bond markets, increasing the supply of high-rated safe-haven bonds and pushing Germany into a period of sustained rising government bond yields.
Germany
2. Novo Nordisk's $Novo-Nordisk A/S(NVO)$
CagriSema
3. Oracle's $Oracle(ORCL)$
Oracle CEO
4. Apple $Apple(AAPL)$
Apple major software overhaul
5. The Nasdaq CEO stated that while the U.S. has a strong IPO pipeline, investors are seeking greater market stability before committing to new investments.
Nasdaq CEO
Key Takeaway
The recent selloff in major U.S. tech stocks, including AI-related giants known as the "Magnificent Seven," is partly due to the unwinding of yen carry trades, as Japanese bond yields have surged.
Comments
Here are the market highlights for 11 March 2025:
Global markets mostly declined amid rising recession fears. The S&P 500 Index in the U.S. fell by 2.68%, while the Nasdaq Index dropped by 3.99%.
Germany's industrial production grew by 2.0% month-on-month in January, exceeding expectations. However, exports declined by 2.5% year-on-year, highlighting challenges for the new government.
Asian markets mostly closed lower, with Hong Kong's Hang Seng Index and China's CSI 300 Index dropping by 1.85% and 0.39% respectively. Investors are concerned about deflation following China's report of declining consumer prices.
Japan's nominal wages grew by 2.8% year-on-year in January, down from December's 4.4% growth and below expectations.
Upcoming events include the release of financial reports by companies such as Volkswagen, Henkel, Ferguson Plc, and Dick's Sporting Goods, among others.
Some relevant news articles regarding the market decline and recession fears are:
Wall Street Fears Trump Will Wreck the Soft Landing: This article discusses how the recent selloff in major U.S. tech stocks is partly due to the unwinding of yen carry trades and concerns over the U.S. economy entering a recession.
Temporary U.S. Funding Bill Imminent: Can U.S. Stocks Stage a Short-Term Rebound?: The article highlights the upcoming vote for a temporary funding measure in the U.S. and its potential impact on market sentiment. It also mentions that major U.S. indices have dropped around 8% and may test lower levels before a short-term rebound.
Wall Street's 2025 Stock Market Forecasts Are Falling Apart For One Simple Reason: This article discusses how the slowdown in the U.S. economy is impacting market forecasts. While no major Wall Street firm is calling for an outright downturn, the rate and direction of change in economic growth are important factors in setting current prices.
Financials Down Sharply on Trade Policy Fears: Shares of banks and financial institutions fell as traders reassessed the impact of trade and economic policies. The possibility of a multi-front trade war and rising consumer prices could tie the Federal Reserve's hands on rate policy, potentially exacerbating the economic slowdown.
What to Expect from Februaryβs CPI Release!: This article discusses the potential impact of tariff policies and inflation expectations on the U.S. economy. It also mentions the recent market decline and highlights concerns over economic uncertainties.
Please note that the market conditions mentioned are for informational purposes only and should not be considered as investment advice.