On Thursday’s close, the Dow Jones Index (US30) decreased by 0.45%. The S&P 500 Index (US500) closed down 1.59%. The Nasdaq Technology Index (US100) fell by 2.75%. The broad market also came under pressure after President Trump announced that the proposed 25% tariffs on Canada and Mexico would take effect on March 4, while China will be hit with an additional 10% tariffs from the same date.

The US GDP for Q4 was unchanged at 2.3% (QoQ annualized). The core PCE Price Index for Q4 was revised upward to 2.7% from the previously reported 2.5%. US weekly initial jobless claims rose 22,000 to a 2.5-month high of 242,000, indicating a weaker labor market than expectations of 221,000. Markets rate the odds of a 25 bps rate cut at the next FOMC meeting on March 18-19 at 2%.

The digital assets’ selloff has deepened. Bitcoin continued its fall toward the $80,000 mark on Friday and is now about 25% below all-time highs. The fall followed a widespread sell-off in risk assets amid worries over Trump’s trade policies and growing concerns about the state of the US economy. In addition, continued uncertainty over the Trump administration’s policy regarding digital assets has pressured the market. The $1.5 billion hack of the ByBit exchange also highlighted the significant risks facing the industry.

Equity markets in Europe were mostly down on Thursday. Germany’s DAX (DE40) fell by 1.07%, France’s CAC 40 (FR40) closed down 0.51%, Spain’s IBEX 35 (ES35) lost 0.46%, and the UK’s FTSE 100 (UK100) closed positive 0.28%.

WTI crude oil prices fell below the $70 a barrel mark on Friday, reaching their biggest monthly decline since September, as US economic woes and broader market uncertainty weighed on the outlook for energy demand. Hopes for progress on a peace deal in Ukraine also pressured prices, as a settlement could lead to the lifting of Russian sanctions and increased oil exports.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) rose by 0.30%, China’s FTSE China A50 (CHA50) gained 0.81%, Hong Kong’s Hang Seng (HK50) fell by 0.29% and Australia’s ASX 200 (AU200) was positive 0.33%.

The offshore yuan maintained its fall around 7.29 per dollar, driven by US President Donald Trump’s announcement of an additional 10% tariff on Chinese imports. The tariffs will take effect on March 4, 2025, and are expected to put significant pressure on China’s export-driven economy, which remains heavily reliant on free trade. Meanwhile, investors are eagerly awaiting fiscal stimulus measures from China’s “Two Sessions” next week. The annual parliamentary meeting is expected to outline a policy agenda to revive economic growth, with a key focus on restoring domestic confidence, addressing economic pressures, and overcoming the developing trade war and technology rivalry with the US.

The Australian dollar slipped to $0.623 on Friday and was down more than 2% for the week as US President Donald Trump’s escalating tariffs heightened fears of a global trade war, weighing on export-oriented economies and their currencies. Australia’s economy, which relies heavily on exports to China, is particularly vulnerable to policies that could dampen Chinese demand.

In February, the Indonesian rupiah hit a five-year low of around 16,500 per US dollar amid a general weakening of Asian currencies. The US President Trump said his proposed tariffs on Mexico and Canada would take effect on March 4, while an additional 10% tariff on China would be imposed on the same day, which strengthened the US dollar. Also weighing on the rupiah was Indonesia’s persistent current account deficit, which remained negative for the 7th consecutive quarter at the end of 2024.