Ankara: Global markets experienced mixed reactions on Monday as the US implemented significant tariffs, with a 25% duty on Canadian and Mexican products and a 10% tariff on Chinese imports coming into effect on Tuesday.
According to Anadolu Agency, President Donald Trump, addressing US farmers via Truth Social, emphasized that agricultural products would be marketed domestically, declaring, "tariffs will go on external product on April 2nd. Have fun!" This move has heightened fears of a trade war, complicating price predictions.
In retaliation, Canadian Prime Minister Justin Trudeau announced a 25% tariff on US imports starting Tuesday. Meanwhile, the Institute for Supply Management's manufacturing PMI fell short of expectations at 50.3 in February, though it still indicated sector expansion. Conversely, S and P Global's manufacturing PMI exceeded predictions, reaching 52.7, a 32-month high.
Amidst these developments, the US Federal Reserve is anticipated to cut its policy rate by 25 basis points in June, according to market forecasts. Economic uncertainties have led to increased demand for safe-haven assets, with US 10-year futures dropping to 4.15% and the US dollar index declining 0.1% to 106.6. Gold saw a 1.1% rise, closing at $2,891 on Monday.
In the energy sector, Brent crude began Tuesday at $71 per barrel, a 0.4% decrease from its previous close. The S and P 500, Nasdaq, and Dow Jones experienced declines on Monday, yet American futures showed an upward trend on Tuesday.
European markets were influenced by the EU's decision to boost defense spending. EU Commission President Ursula von der Leyen emphasized the need for increased defense budgets, with plans to present a rearmament strategy in Brussels on Thursday. This announcement led to significant gains for European defense contractors, including Hensoldt, Leonardo SpA, and Dassault Aviation, among others.
The FTSE 100, DAC 40, CAC 40, and FTSE MIB 30 saw gains on Monday, with the DAX 40 and FTSE 100 setting new records. European futures began Tuesday on a mixed note.
In Asia, the US tariffs have impacted markets, with China imposing 10-15% retaliatory tariffs on US agricultural products effective March 10. Japan's unemployment rate exceeded expectations at 2.5%. The Nikkei 225, Shanghai Composite Index, and Hang Seng Index all posted losses, while the Kospi Index remained stable.
In Trkiye, the BIST 100 index rose by 2.61%, while the Consumer Price Index increased by 2.27% month-on-month in February, marking a 39.05% year-on-year decrease, below forecasts.