Asia Markets Decline as European Losses Continue and Oil Prices Fall Amid Tariff Concerns

On February 27, the U.S. markets finished lower, influenced largely by Nvidia's disappointing quarterly forecast, which did not meet the expectations set by Wall Street analysts. This development sparked worries among investors over diminishing demand for artificial intelligence technologies, contributing to a broader atmosphere of unease regarding the economy.

The recent economic data has also shown signs of a cooling U.S. economy, with rising jobless claims and reports of slowing growth feeding fears of a potential downturn. Specifically, initial claims for jobless benefits increased by 22,000 to 242,000, surpassing the anticipated total of 221,000 and marking the highest level in over two months. This indicates a weakening labor market, which further unsettled investors.

Related: Nvidia Shares Dip Despite Strong Q4 Earnings Beat, Record Revenue: What’s Going On?

In addition to these concerns, the U.S. Bureau of Economic Analysis made a minor upward revision on the fourth-quarter 2024 GDP, increasing it by less than 0.1% thanks to rising government spending and exports.

On the S&P 500, most sectors ended negatively, particularly technology and communication stocks, while a few sectors like financials and energy showed some gains.

The Dow Jones Industrial Average dropped by 0.45% to close at 43,239.50. The S&P 500 fell 1.59% to 5,861.57, and the Nasdaq Composite saw the most significant decline, sliding 2.78% to 18,544.42.

Asia Markets Today

• On Friday, Japan’s Nikkei 225 fell 2.90%, closing at 37,152.50, largely due to losses in the Transport, Pharmaceutical, and Power sectors.
• Australia’s S&P/ASX 200 dropped 1.16% to 8,172.40, impacted by setbacks in the IT, Metals & Mining, and Materials sectors.
• In India, the Nifty 50 index decreased 1.88% to 22,120.25, while the Nifty 500 dropped 2.13% to 19,882.05, driven down by losses in Technology, Autos, and Public Sector Undertakings.
• China’s Shanghai Composite also retreated by 1.98%, closing at 3,320.90, and the Shanghai Shenzhen CSI 300 fell 1.97% to 3,890.05.
• Hong Kong’s Hang Seng Index declined by 3.28%, ending the session at 22,941.32.
• The downturn in Asian markets was amplified by concerns over escalating U.S. tariffs, which unsettled investors further.

European Markets at 05:30 AM ET

• The European STOXX 50 index was down 0.49%.
• Germany’s DAX fell by 0.22%.
• France’s CAC saw a dip of 0.33%.
• The U.K.’s FTSE 100 index showed a slight increase of 0.20%.
• European markets continued to decline as traders reacted to the prospect of U.S. tariffs on the EU, with Trump suggesting that Britain might avoid such taxes through a trade agreement.

Commodities at 05:30 AM ET

• Crude oil prices were lower, with WTI trading down by 1.38% at $69.38 per barrel and Brent decreasing 1.24% to $72.66 per barrel.
• This drop in oil prices marked the beginning of what could be the first monthly decline since November, as sentiment turned negative due to uncertainties surrounding U.S. tariffs, Iraq’s oil exports, and OPEC’s direction.
• Natural gas prices fell 0.41% to $3.918.
• Precious metals also saw declines, with gold down 0.73% to $2,874.01, silver slipping 1.39% to $31.360, and copper decreasing 1.34% to $4.5560.

U.S. Futures at 05:30 AM ET

Despite the prior day’s losses, Dow futures were up 0.32%, S&P 500 futures gained 0.37%, and Nasdaq 100 futures rose 0.33%.

Forex at 05:30 AM ET

• The U.S. dollar index climbed 0.06% to 107.35. The USD/JPY pairing rose by 0.31% to 150.35 and the USD/AUD increased by 0.35% to 1.6093.
• The U.S. dollar appreciated as traders reacted to potential tariffs from the Trump administration, leading to a selloff in risk assets. Although the dollar strengthened against the yen and euro, ongoing concerns regarding economic slowdown and future Federal Reserve rate cuts limited its overall monthly performance.

AsianMarkets, Oil, Tariffs, Economy, InvestorSentiment