MARKET SNAPSHOT

U.S. stocks resumed their downward path, spurred by big shifts in U.S. trade policy. Treasury yields were mixed a day ahead of February payrolls data and as Wall Street struggled to figure out how tariffs will impact the economy. Oil futures edged higher amid reports of U.S. plans to tighten enforcement of sanctions against Iranian oil. Gold prices edged higher as the dollar continued to weaken.

MARKET WRAPS

EQUITIES

Trade tensions battered markets again, as traders and portfolio managers grappled with fears that policy volatility will weigh on U.S. economic performance.

Declines were broad-based, with financial and tech stocks notching some of the largest losses.

The Nasdaq Composite sank 2.6% and entered correction territory, marking a decline of 10% or more from a recent peak. The S&P 500 fell 1.8%, and the Dow Jones Industrial Average lost 1%.

Investors have been unnerved by the frequent swings in the White House's tariff policy.

The latest is that the U.S. will pause tariffs on goods from Mexico and Canada that comply with the North American free trade pact until April 2, the White House said, just days after it slapped 25% tariffs on the U.S.'s two largest trading partners.

Earlier Thursday, Chinese shares ended higher, with gains led by software and insurance stocks. Market sentiment reflected expectations of additional supportive measures after China set its 2025 economic growth target at 5% despite domestic growth headwinds and external uncertainties.

The benchmark Shanghai Composite Index ended 1.2% higher, the Shenzhen Composite Index gained 1.8% and the ChiNext Price Index was up 2.0%. Hong Kong's Hang Seng Index rose 3.3% to a three-year closing high.

Japan's Nikkei Stock Average added 0.8%, tracking Wall Street's gains overnight after the White House announced a one-month tariff reprieve for auto imports from Mexico and Canada.

Stocks in Australia slipped, as the S&P/ASX 200 fell 0.6%, the third consecutive day of decreases.

New Zealand's NZX-50 edged 0.1% higher, snapping a three-day losing streak despite Air New Zealand shares falling after its CEO resigned.

COMMODITIES

Oil futures finished with small gains, snapping a four-day losing streak after ending the previous session at nearly six-month lows on fears global trade tensions will undercut demand and as traders prepare for an increase in supply from OPEC+ next month.

West Texas Intermediate crude for April delivery rose 0.1% to close at $66.36 a barrel on the New York Mercantile Exchange. May Brent crude settled at $69.46 a barrel on ICE Futures Europe, up 0.2%.

"The recent confirmation from OPEC+ that it intends to go ahead with the plans to gradually increase oil production from April has coincided with ongoing signs of weakness in global oil demand," said Lily Millard, an economist at Capital Economics.

Front month Comex gold for March delivery edged up less than 0.1% to settle at $2916.60 per troy ounce.

TODAY'S TOP HEADLINES

Trump Delays Tariffs on Some Mexican, Canadian Goods

President Donald Trump has delayed his 25% tariffs on imports from Mexico and Canada that comply with his 2020 free trade agreement and could pause levies on other goods, administration officials said.

The White House said Thursday afternoon that the U.S. is pausing his tariffs on imports from Mexico and Canada that comply with the USMCA, the acronym for the U.S. Mexico-Canada Agreement that Trump negotiated in his first term.

The administration said the tariff on Canadian potash, an agricultural fertilizer, will be lowered to 10% from 25%, to protect American farmers. Tariffs on the auto industry have already been delayed until April.

U.S. Foes and Friends Will Face More Pressure, Bessent Says

The U.S. will put economic pressure on not just U.S. adversaries, but also allies who don't align with President Donald Trump's global vision, Treasury Secretary Scott Bessent said Thursday.

"Access to cheap goods is not the essence of the American Dream," Bessent said in a speech at the Economic Club of New York. "To the extent that another country's practices harm our own economy and people, the United States will respond. This is the America First Trade Policy," he said.

Bessent also took aim at Russian and Iranian energy exports, saying the U.S. may add to existing restrictions. "A major factor that has enabled the Russian war machine's continued financing was the Biden administration's egregiously weak sanctions on Russian energy, stemming from worries about upward pressure on U.S. energy prices," Bessent said.

ECB Cuts Rates to Guard Stalled Economy Against Tariff Threats

The European Central Bank cut interest rates to boost growth, with the region's stalled economy facing twin shocks from Trump tariff threats and a sudden need to radically increase military spending.

The ECB reduced its key interest rate to 2.5% from 2.75% Thursday, widening a gap in benchmark borrowing costs with the Federal Reserve. It was the sixth cut in seven meetings.

ECB President Christine Lagarde kept open the door to a pause on interest rates at the bank's next policy meeting in April, or at subsequent meetings. "We are now moving to a more evolutionary approach [where] we take account of the journey which we have traveled," she said at a news conference in Frankfurt.

Panama Port Deal Plants U.S. Flag in China-Dominated Sector

A deal to put U.S. investors in control of a global ports network, including berths at the Panama Canal, removes potential levers for Chinese influence and marks rare American inroads in a strategic sector dominated by Beijing.

An investment group led by Wall Street fund manager BlackRock this week struck a $22.8 billion agreement to buy Hong Kong-based CK Hutchison Holdings's majority ownership of 45 port operations in over 20 countries, most notably facilities at either end of the Panama Canal. That aspect of the deal could blunt a key argument by President Trump that China is in control of the Panama Canal, a questionable proposition from the start but evidence of his intent to reorder world trade.

The injection of private American capital into ports across the world is a twist on Beijing's focus on international infrastructure through a program it calls Belt and Road.

Walgreens Seals $10 Billion Take-Private Deal With Sycamore

Walgreens's almost centurylong run as a public company is coming to an end. The embattled drugstore chain has struck a deal to be taken private by Sycamore Partners in one of the biggest leveraged buyouts in recent memory.

Sycamore has agreed to pay $11.45 a share in cash for Walgreens Boots Alliance, representing an equity value of around $10 billion and 29% above where the stock was trading last year. Shareholders could also receive up to an additional $3 a share down the road, based on proceeds from selling the company's primary-care assets.

The total value of the deal, including debt and the potential future payouts, would be almost $24 billion. The companies expect the deal to close in the fourth quarter of 2025.

HPE to Eliminate Jobs as Fiscal Outlook Is Hurt by Tariffs

Hewlett Packard Enterprise approved a cost-reduction program that includes job cuts, as the company said it expects fiscal 2025 profit to be dragged down in part by tariffs.

The server and cloud-software company's board approved a cost-reduction program that is expected to deliver $350 million in savings by fiscal 2027. However, it didn't say how many jobs it expects to eliminate.

HPE expects to incur about $350 million in charges related to the program. Approximately $250 million will be incurred during fiscal 2025, with the remaining $100 million expected to hit in fiscal 2026.

Boeing Seeks Plan B After Fire Destroys Key Supplier's Plant

A fire tore through an airplane-parts factory last month in suburban Philadelphia, decimating the century-old plant. Boeing has been racing ever since to size up whether it will delay the jet maker's turnaround plans.

Equal in size to about 10 football fields, the factory, operated by a Berkshire Hathaway company, was the sole supplier of some critical fasteners used in Boeing planes. Fallout from the blaze now threatens the aerospace company's effort to get its manufacturing operations back on track.

Boeing is searching to find alternative suppliers, but replacing the parts isn't an easy task. Many might look like typical bolts, but the fasteners must be manufactured to hold up to the demands of air travel, and some of the designs are complex. They are used in jet engines, landing gear and other parts of the plane.

French Shipping Magnate Pledges to Help Trump Revive U.S. Shipping

French shipping magnate Rodolphe Saadé met President Trump at the White House on Thursday and pledged to invest $20 billion in the U.S. over the next four years as the administration pushes to revive the American maritime sector.

Saadé, the billionaire chairman and chief executive of Marseille's CMA CGM, intends to triple the size of the container line's U.S.-flagged fleet, upgrade its U.S. port facilities and create a Chicago airfreight hub, among other moves.

A CMA CGM official said its $20 billion pledge represents all of the company's U.S. investment plans. It wasn't clear how much of the spending had been planned previously.

Expected Major Events for Friday

05:30/AUS: Feb Official Reserve Assets

06:30/THA: Feb CPI

07:00/MAL: Feb International Reserves, end of month

07:30/THA: Weekly International Reserves

08:00/TAI: Feb Price Indexes: Consumer Prices $(CPI.UK)$

08:00/TAI: Feb Merchandise trade

08:30/HK: Feb Foreign Exchange Reserves

09:00/SIN: Feb Official Foreign Reserves

09:59/PHI: Feb Gross International Reserves

09:59/CHN: Jan Commodities Trade Data

09:59/CHN: Jan Energy Trade Data

09:59/CHN: Jan-Feb Trade

09:59/CHN: Feb Foreign Exchange Reserves

09:59/CHN: Feb Commodities Trade Data

09:59/CHN: Feb Energy Trade Data

09:59/CHN: Feb Trade

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March 06, 2025 17:06 ET (22:06 GMT)

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