The Overnight Report: Tariff Turmoil Continues

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President Trump upends market sentiment (yet again) on threats of escalating trade war with Europe over wines and spirits.

Investors are in no mood for uncertainty as gold rallied and the US dollar strengthened, while the Nasdaq declined further to a -10% pullback in a few weeks only.

Russia doesn’t seem to be playing ceasefire ball with negotiators and crude oil continues sending global growth slowdown (fear) signals.

Happy Friday from FNArena with a not so upbeat overnight performance.

Ongoing uncertainty rattled US markets overnight. President Trump announced a potential 200% tariff on European beverage imports, with French champagne and wine in the spotlight.

Comments from the Treasury Secretary did not improve overall sentiment when Bessent commented the US administration is not concerned with “a little bit of volatility.” Adobe, SentinelOne, and UiPath all provided disappointing forward guidance.

Big tech continued to come under pressure. Atlassian declined over -8% and is accumulating a -34% one-month loss. Tesla, Apple, Meta, and Netflix all fell by more than -3%.

The Nasdaq fell almost -2% and has now declined -10% from its high on February 19, sending commentators into a spin on the index now having entered “correction territory.” The S&P500 closed down -1.39%, with the Dow Jones down -1.3%.

European stocks fared better overnight, with the Euro Stoxx down -0.6% and the FTSE 100 unchanged.

Geopolitics boosted the risk-off tone as President Putin challenged the proposed ceasefire agreement, while the prospect of a possible US government shutdown this weekend increased, with Senate Democrat leader Chuck Schumer saying his party would oppose the Republican spending bill.

Gold rallied nearly 2% to US$2,990 as investors looked for protection and a safe haven. Brent crude declined -1.45% to under US$70 per barrel as the International Energy Agency warned of oversupply as tariffs impact demand.

Positive February PPI (0% month-on-month) and US jobless claims for the week ending March 8 at 220k from 225k could not shake investor malaise and ongoing selling pressure.

The 10-year yield ended down by -4bps at 4.27%, and the 2-year yield settled four basis points lower at 3.95%, while the US Treasury completed this week’s mediocre note and bond auction sale with a weak 30-year bond reopening.

The USD strengthened with the Australian dollar trading down under USD63c.

Dow Jones Industrial Average: -4.1% YTD
S&P 500: -6.1% YTD
S&P Midcap 400: -8.4% YTD
Nasdaq Composite: -10.4% YTD
Russell 2000: -10.6% YTD

ASX futures are pointing to a weaker opening, with the market falling prey to selling pressure yesterday. Some analysts suggest lower Chinese growth and commodity prices, along with a more negative view on global growth, are resulting in US brokers and fund managers turning negative on Australia. Let’s see whether the now routine afternoon selling kicks in on another risk-off Friday.

Corporate news in Australia

-Capricorn Metals ((CMM)) entered into a binding agreement to acquire the Kings Find Project from Serena Minerals for a total consideration of -$1.5 million.
-Rio Tinto ((RIO)) is buying two adjacent solar and battery projects built by Edify under a 20-year energy agreement ($2bn investment) for its Gladstone aluminium operations.
-JP Morgan has acquired a 5.36% stake in Rio Tinto, making it the second-largest shareholder after Vanguard at 6.02%.
-Perpetual ((PPT)) is seeking a new adviser to assist with the divestment of its wealth business.
-The ACCC is reviewing DP World’s $174m plan to acquire Silk Logistics ((SLH)) over concerns about higher prices for goods and reduced competition.
-BlackRock is reportedly considering acquiring Fonterra’s ((FSF)) Southeast Asian business in a complex deal valued at $174m.
-Boss Energy ((BOE)) has increased its stake in Laramide Resources ((LAM)), buying a further 9% for $15.5m, bringing its total shareholding to 18.4%.

On the calendar today:

-NZ Feb Manufacturing PMI

-UK Jan GDP, Trade Bal

-US University of Michigan sentiment

-ADRIATIC METALS PLC ((ADT)) AGM

-CAR GROUP LIMITED ((CAR)) ex-div 38.50c (50%)

-CHALICE MINING LIMITED ((CHN)) earnings report

-DATA#3 LIMITED. ((DTL)) ex-div 13.10c (100%)

-DEEP YELLOW LIMITED ((DYL)) earnings report

-LIONTOWN RESOURCES LIMITED ((LTR)) earnings report

-METEORIC RESOURCES NL ((MEI)) earnings report

-PREDICTIVE DISCOVERY LIMITED ((PDI)) earnings report

-WISETECH GLOBAL LIMITED ((WTC)) ex-div 10.55c (100%)

FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/

The Australian share market over the past thirty days

For more detail go to FNArena’s Australian Broker Call Report, which is updated each morning, Mon-Fri.

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here. (Subscribers can access prices on the website.)

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