Asia Markets Mixed, Europe Slips As China's Tariff Retaliation Hits Sentiment - Global Markets Today While US Slept

On Tuesday, February 4, U.S. markets closed higher, driven by energy sector gains, as optimism grew over a potential U.S.-China trade breakthrough. Trump delayed Mexico-Canada tariffs but imposed new levies on China, prompting retaliation. Strong corporate earnings lifted sentiment, with Palantir surging 24%. Fed officials warned of inflation risks from tariffs, while job openings missed expectations.

Also Read: ‘Pharma Bro’ Martin Shkreli Defends Palantir’s Valuation Amid 24% Surge, Says AI Firm’s Cash Flow Justifies ‘Expensive’ Price.

In economic data, U.S. job openings fell by 556,000 to 7.6 million in December, missing estimates of 8.0 million. Factory orders dropped 0.9% to $578.5 billion, following a revised 0.8% decline in November.

Most S&P 500 sectors ended higher, led by energy, tech, and communication services, while utilities and consumer staples declined.

The Dow Jones Industrial Average was up 0.30% and closed at 44,556.04, the S&P 500 closed higher by 0.72% at 6,037.88, and the Nasdaq Composite rose 1.35% to finish at 19,654.02.

Aisa Markets Today

• On Wednesday, Japan’s Nikkei 225 closed higher by 0.08% at 38,809.00, led by gains in the Textile, Marine Transport, and Services sectors.
• Australia’s S&P/ASX 200 gained 0.51% at 8,416.90, led by gains in the Gold, Metals & Mining and Resources sectors.
• India's Nifty 50 closed lower by 0.23% at 23,685.10, while Nifty 500 rose 0.22% closing at 21,776.00,
• China’s Shanghai Composite fell 0.63% and closed at 3,229.49; Shanghai Shenzhen CSI 300 was down 0.56% at 3,795.08.
• Hong Kong’s Hang Seng closed the session lower by 0.93% at 20,597.09.
• Chinese markets fell as U.S.-China trade tensions escalated, with Shanghai and Hong Kong indexes declining. China announced retaliatory tariffs on U.S. goods, effective February 10, 2025.

Eurozone at 05:30 AM ET

• The European STOXX 50 was down 0.22%.
• Germany’s DAX fell 0.24%.
• France’s CAC declined 0.25%.
• U.K.’s FTSE index 100 traded lower by 0.01%.

Commodities at 05:30 AM ET

• Crude Oil WTI was trading lower by 0.85% at $72.05/bbl, and Brent was down 0.88% at $75.53/bbl.
• Oil prices declined as rising U.S. stockpiles and escalating trade tensions with China fueled economic growth concerns, countering Trump’s efforts to restrict Iranian crude exports.
• Natural Gas declined 1.35% to $3.210.
• Gold was trading higher by 0.55% at $2,891.46, Silver was down 0.16% to $32.965, and Copper rose 0.32% to $4.3680.

U.S. Futures at 05:30 AM ET

Dow futures were down 0.20%, S&P 500 futures declined 0.56% and Nasdaq 100 futures slid 0.95%.

Forex at 05:30 AM ET

• The U.S. dollar index declined 0.54% to 107.42, the USD/JPY fell 1.11% to 152.64, and the USD/AUD fell 0.49% to 1.5907.
• The yuan weakened as U.S.-China trade tensions hit markets, while the yen surged on expectations of Bank of Japan rate hikes. The dollar fell against major currencies, with traders watching China’s response to tariffs and potential U.S. negotiations. Japan’s strong wage data fueled further yen gains.

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