Asia Markets Mixed, Europe Edges Higher As China's Tariff Retaliation Sparks Trade Uncertainty - Global Markets Today While US Slept

On Monday, February 3rd, U.S. markets closed in red, recovering from steeper losses after President Trump delayed tariffs on Mexico for a month following its agreement to deploy 10,000 National Guard troops.

Trump’s broader tariff strategy, including levies on China and Canada, signals continued market volatility and potential inflationary effects.

In economic news, U.S. construction spending rose 0.5% month-over-month in December, reaching an annualized $2,192 billion after a revised 0.2% increase in November. Meanwhile, the ISM manufacturing PMI improved to 50.9 in January, surpassing expectations of 49.8 and up from a revised 49.2 in December.

Most S&P 500 sectors fell, led by consumer discretionary, tech, and industrials, while utilities and consumer staples gained.

The Dow Jones Industrial Average was down 0.28% and closed at 44,421.91, the S&P 500 closed lower by 0.76% at 5,994.57, and the Nasdaq Composite fell 1.20% to finish at 19,391.96.

Aisa Markets Today

• On Tuesday, Japan’s Nikkei 225 closed higher by 0.61% at 38,776.50, led by gains in the Communication, Transport, and Marine Transport sectors.
• Australia’s S&P/ASX 200 declined 0.06% at 8,374.00, led by losses in the A-REITs, Consumer Discretionary, and Energy sectors.
• India’s Nifty 50 closed higher by 1.48% at 23,707.70, and Nifty 500 rose 1.41%, closing at 21,704.75, led by gains in the Capital Goods, Public Sector Undertakings, and Oil & Gas sectors.
• China markets were closed for the Chinese New Year holiday.
• Hong Kong’s Hang Seng closed the session higher by 2.83% at 20,789.96.

Eurozone at 05:30 AM ET

• The European STOXX 50 was up 0.10%.
• Germany’s DAX rose 0.10%.
• France’s CAC gained 0.20%.
• U.K.’s FTSE index 100 traded lower by 0.16%.

Commodities at 05:30 AM ET

• Crude Oil WTI was trading lower by 1.53% at $72.02/bbl, and Brent was down 0.87% at $75.28/bbl.
• China imposed tariffs on U.S. crude oil, LNG, and coal, but the impact is limited due to modest imports. U.S. LNG faces challenges, though long-term contracts remain viable.
• Crude flows may shift to alternative sources while refiners seek waivers or diversify. U.S. energy exports may reroute to Europe.
• Natural Gas declined 3.88% to $3.222.
• Gold was trading lower by 0.60% at $2,839.09, Silver was down 0.68% to $32.300, and Copper rose 0.52% to $4.3278.

U.S. Futures at 05:30 AM ET

• Dow futures were down 0.26%, S&P 500 futures declined 0.23%, and Nasdaq 100 futures slid 0.13%.
• U.S. stock futures fell as Trump’s China tariffs took effect, sparking Beijing’s retaliation. Oil prices dropped, Alphabet’s earnings drew attention, and OPEC+ upheld production cuts.

Forex at 05:30 AM ET

The U.S. dollar index surged 0.13% to 108.55, the USD/JPY rose 0.37% to 155.32, and the USD/AUD rose 0.26% to 1.6098.

Photo by Pavel Bobrovskiy via Shutterstock