Mexico stocks as represented by the iShares MSCI Mexico ETF (EWW) popped 1.7% in midday trading, following losses earlier in the day, after Mexico President Claudia Sheinbaum said tariffs against the country would be delayed by one month. Major U.S. indexes are attempting a turnaround in midday trading after the earlier sell-off caused by concerns around the impact of U.S. tariffs. The major stock averages closed lower to end Monday’s trading session. Yields edged up this week after a hotter-than-expected inflation report. Some traders are now eyeing the 10-year bond hitting 5% in the coming weeks.
Tech stocks fall
Shares of Japan-listed Mazda Motor Corp traded more than 7.5% lower, while Kia Motor Corp fell nearly 7%. When asked on Sunday about the prospect of tariffs on goods from the U.K. And European Union, Trump told the BBC that both were “out of line” but that the EU was worse. He said a deal could be “worked out” with the U.K., a country with whom the U.S. has a more balanced trade relationship, but stood firm that tariffs on the EU “will definitely happen.” At Monday’s session lows, Canadian Imperial Bank of Commerce tumbled 8%, Bank of Nova Scotia suffered a 7.5% decline, Bank of Montreal dropped 6%, Toronto-Dominion Bank lost 5% and Royal Bank of Canada sank 4.5%. The widely followed investor said fixed income, foreign exchange and equity markets have all gone through sea changes during the past eight years.
Bonds & rates
The fund closed out last week by falling about 3.6% over the period. Markets are worried that President Donald Trump’s tariffs on China, Mexico and China could spill over to Europe and further stoke volatility, according to BMO Wealth Management’s chief investment officer, Yung-Yu Ma. Within the survey, the employment index leaped to 50.3, a gain of 4.9 points, while new orders and production also posted gains. The iShares MSCI Mexico ETF (EWW), which tracks Mexican stocks, rebounded to close more than 2% higher.
Sign up for CNN Business’ newsletter for the top stories you need to know.
Equity Markets Close Mixed After Macro Data, Notch Weekly Gains
- In Europe, shares of French car parts supplier Valeo and automaker Renault fell 8.3% and 4%, respectively, during early morning deals.
- “That’s because concessions are an ‘easier’ way to deal with Trump’s ‘problems’ (from a cost-benefit and game-theoretic perspective), and Trump likes to make ‘deals’. Political and market pressure will also weigh on the parties to make concessions, as in 2018.”
- At Bank of America, economists now believe the Fed is done cutting rates — and see a growing possibility that central bankers may, instead, need to consider raising rates.
- Auto stocks fell in the premarket Monday, as traders weighed how the latest U.S. tariffs could hurt the industry.
- It reversed a trend of 26 straight months in contraction as the best number since September 2022.
- Citigroup in early December said it completed the separation of Banamex from its institutional banking business in Mexico in preparation to list the retail bank, Reuters reported at the time.
That puts further pressure on top trading partners Canada and Mexico. “The strong jobs report sent yields higher amid expectations for the Fed to pause pepperstone canada its rate cutting cycle for a significant period of time,” Ross Mayfield, an investment strategist at Baird, wrote in a note Friday. The selloff comes as the economy added 256,000 jobs in December, far outpacing expectations of around 153,000 jobs. While strong job growth signals a healthy economy, it raises the question of how soon the central bank needs to cut interest rates again. Auto stocks fell in the premarket Monday, as traders weighed how the latest U.S. tariffs could hurt the industry.
Dollar rises on the heels of Trump tariffs
- The news sparked a major global sell-off, with equities in the U.S. and abroad tumbling.
- Factory activity in the U.S. expanded in January for the first time in more than two years, the Institute for Supply Manufacturing reported Monday.
- Triumph shareholders will receive $26 per share in cash, making the deal worth around $3 billion total.
- Every weekday afternoon, get a snapshot of global markets, along with key company, economic, and world news of the day.
- Sales rose about 2.3% year over year, led by growth in the beef category.
- In his opening remarks, Powell told lawmakers the Fed is not in a rush to adjust interest rates and reiterated the central bank’s stance of not commenting on trade policy.
Trade wars and bond market disruptions loom over an otherwise buoyant stock market. Fear was the sentiment driving the market Friday, according to CNN’s Fear and Greed Index. The three indices all finished the week in the red as Friday’s selloff erased the week’s previous gains.
Traders also digested the start of Federal Chair Jerome Powell’s two-day testimony in Congress. In his Cfd stocks opening remarks, Powell told lawmakers the Fed is not in a rush to adjust interest rates and reiterated the central bank’s stance of not commenting on trade policy. Another part of the energy market swung higher following the U.S. tariffs on Mexico, Canada and China. The move shows traders expect these levies to drive up energy costs in the near term. President Donald Trump imposed long-threatened tariffs on goods from Canada, Mexico and China, sparking concerns about the prospect of a global trade war. Tech stocks came under pressure in premarket trading Monday, with shares of the Technology Select Sector SPDR Fund (XLK) falling more than 2%.
Trending Indices
US stocks plunged Friday as investors digested a better-than-expected jobs report that soured expectations https://www.forex-reviews.org/ of future rate cuts from the Federal Reserve. The tone is cautious in the wait for Trump to reveal his plan for universal like-for-like tariffs, promised for announcement midweek. The president on Monday imposed 25% tariffs on all steel and aluminum imports from March 12, according to executive orders.