- Asian Stocks, Bitcoin Drop on Souring Sentiment: Markets Wrap
Asian stocks followed US equities lower as continual shifts in US President Donald Trump’s approach to tariffs
on trade partners whipped up market uncertainty and dented confidence in the economic outlook. Shares in
Australia and Japan tumbled more than 1.5% each while a gauge of Chinese stocks in Hong Kong gained to
the highest level since November 2021. An index of the dollar fell for a fifth session, its longest losing streak
in almost a year. Bitcoin fell as details of a US strategic reserve underwhelmed. Traders pointed to
uncertainty over Trump’s tariffs. US stocks failed to stage a rebound even after a decision by Trump to delay
levies on Mexican and Canadian goods covered by the North American trade deal, underscoring the fragile
appetite for risk. Financial markets have whipsawed this week as investors deal with geopolitical uncertainty
and conflicting signals from the US about the levies. - Dow tumbles 400 points, Nasdaq enters correction as trade policy fatigue ignites sell-off
Stocks resumed their steep pullback on Thursday as the latest concessions from the White House on
President Donald Trump’s controversial tariff policies failed to calm rattled investors. The Dow Jones
Industrial Average slid 427.51 points lower, or 0.99%, to 42,579.08, after falling more than 600 points at
session lows. The S&P 500 tumbled 1.78% to 5,738.52. The Nasdaq Composite dropped 2.61% to 18,069.26,
officially closing in correction territory, which is when an index falls 10% from a recent high. - Oil set for biggest weekly drop since October on tariff uncertainty, supply gains
Oil prices were little changed on Friday but were set for their biggest weekly decline since October as the
uncertainty around U.S. tariff policy is creating concerns about demand growth at the same time major
producers are set to increase output. Brent futures rose 13 cents, or 0.19%, to $69.59 a barrel by 0217 GMT.
U.S. West Texas Intermediate crude futures rose 8 cents, or 0.08%, to $66.44 a barrel. However, for the week
Brent is down 4.9%, set for its biggest weekly decline since the week of October 14. WTI is set to drop 4.8%,
also its biggest weekly fall since that week. Markets, including oil, have been whipsawed by the fluctuating
trade policy in the U.S., the world’s biggest oil consumer. On Thursday, U.S. President Donald
Trump suspended the 25% tariffs he had imposed on most goods from Canada and Mexico until April 2,
although steel and aluminum tariffs would still go into effect on March 12 as scheduled. The amended order
does not fully cover Canadian energy products, which are under a separate 10% levy. The tariffs themselves
are considered a drag on economic growth and therefore oil demand growth. But the uncertainty over the
policy is also slowing business decisions, which is also impacting the economy. Brent prices on Wednesday
fell to their lowest since December 2021 after U.S. crude inventories rose and in the wake of the decision by
the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to increase their
output quotas. The group said on Monday that it had decided to proceed with a planned April output
increase, adding 138,000 barrels per day to the market. Some of the downward momentum in prices has
eased as the U.S. is looking at steps to halt exports from key OPEC producer Iran. - Gold eases but eyes weekly gain; US payrolls data on tap
Gold inched lower on Friday on some profit-taking, but was on track for a weekly rise as uncertainty around
U.S. President Donald Trump’s tariff plans firmed demand, while investors awaited U.S. non-farm payrolls
data. Spot gold eased 0.2% to $2,904.98 an ounce as of 0325 GMT. Bullion has gained 1.6% so far this week.
U.S. gold futures lost 0.5% to $2,911.90. “Markets are waiting for fresh triggers regarding what is likely to
happen going forward with respect to the trade war…This small profit-taking would be a good opportunity to
re-enter long positions,” said Kunal Shah, head of research, Nirmal Bang Commodities, Mumbai. Trump on
Thursday suspended the 25% tariffs he imposed this week on most goods from Canada and Mexico, the latest
twist in a fluctuating trade policy that has whipsawed financial markets and fanned worries over inflation and
a growth slowdown. The ongoing trade tensions, inflation uncertainty, and a weaker dollar signaling a
slowing economy, are all bullish for gold, Shah said. The U.S. dollar index was hovering near a four-month
low. Trump’s policies, widely seen as likely to stoke economic uncertainties, have helped safe-haven gold rise
more than 10% so far this year. Federal Reserve Governor Christopher Waller said he leans strongly against a
rate cut at the Fed’s upcoming policy meeting this month, although he reckons cuts later in the year remain
on track if inflation pressures continue to abate. Bullion is seen as a hedge against political risks and inflation,
but higher interest rates dampen the non-yielding asset’s appeal. Spotlight is on the non-farm payrolls report
due at 1330 GMT, which is expected to show a gain of 160,000 jobs for February, a Reuters survey showed.
Spot silver fell 0.4% to $32.51 an ounce and platinum firmed 0.1% to $967.58, while palladium edged 0.1%
lower to $941.21. - ECB cuts interest rates by 25 basis points as expected, flags trade “uncertainty”
The European Central Bank slashed interest rates yet again on Thursday as anticipated, while officials also
lowered their growth forecast for 2025 due in large part to uncertainty around global trade tensions.
The sixth ECB rate reduction since June, which had been broadly expected by markets, brought down its key
deposit rate by 25 basis points to 2.50% from 2.75%. In a statement, the central bank said monetary policy is
becoming “less restrictive,” as rate cuts are easing borrowing costs for businesses and households and
encouraging loaning. But officials flagged that the Eurozone still faces “continued challenges,” leading staff to
mark down their growth projections for 2025 to 0.9% from a prior estimate of 1.1%. Expectations for next
year were also decreased to 1.2%, down from 1.4%. “The downward revisions for 2025 and 2026 reflect
lower exports and ongoing weakness in investment, in part originating from high trade policy uncertainty as
well as broader policy uncertainty,” the ECB said. Along with relatively tepid activity and cooling inflationary
pressures, several recent developments have clouded the ECB’s outlook for interest rates. Potential
reciprocal U.S. tariffs on European Union goods loom large, with President Donald Trump having hit out at
the EU for what he has called unfair trade practices. Brussels has vowed to respond to any U.S. levies.
Meanwhile, coalition negotiations in the region’s traditional economic powerhouse, Germany, are ongoing.
Amidst all of this, recent actions and statements from the Trump administration regarding a possible
ceasefire in the war in Ukraine have threatened to upend Europe’s defense strategy, especially its
longstanding reliance on Washington to provide a security backstop. 3rd party Ad. Not an offer or
recommendation by Investing.com. See disclosure here or remove ads. Analysts have begun to ponder if
European leaders may need to increase defense spending, potentially shaking up the priorities of several
government budgets. - China’s exports miss forecasts as U.S. tariffs hit, imports record sharpest decline since July 2023
China’s exports growth slowed more than expected at the start of the year while imports plunged, as
lackluster domestic demand and U.S. tariffs challenge Beijing’s bid to bolster sluggish growth. Exports in the
January to February period rose 2.3% in U.S. dollar terms from a year earlier, data from the customs
authority showed Friday, significantly undershooting expectations of a 5% increase in a Reuters poll.
That marked the slowest growth since April last year when exports increased by just 1.5% on year, according
to LSEG data. Imports surprised markets by declining 8.4% year-on-year in the first two months of 2025, the
sharpest fall since July 2023, LESG data showed. Analysts had expected imports to expand 1% year-on-year.
The sharp contraction in imports showed the “last quarter’s stimulus-led pick-up in domestic demand has
already partially reversed,” Julian Evans-Pritchard, head of China economics at Capital Economics, said in a
note. Chinese exporters have been rushing to front-load outbound shipments since late last year on
anticipation of more tariffs as U.S. President Donald Trump returned to the White House. Trump’s first round
of 10% tariff hikes on Chinese goods took effect on Feb 4., followed by another 10% tariff increase kicking in
just one month later, taking the cumulative levies to 20%. China has retaliated with additional tariffs on
select U.S. goods, including energy and agricultural products, while restricting exports of certain critical
minerals that the U.S. needs. - Indian consumption stocks await a tax-cut bump
India’s Nifty Fast Moving Consumer Goods index has dropped nearly 9% so far this year. Since February,
shares in ITC have slumped 12.3% while Hindustan Unilever has lost 11.4%. Tata Consumer Products’ shares
has fallen 10.5% and Nestle India declined 5.4%. It might be a good idea to look at individual segments within
the consumer space, rather than the sector as a whole, said Pramod Gubbi, co-founder of Marcellus
Investment Managers. - China calls for ‘peaceful coexistence’ with the U.S. despite differences
China’s Minister of Foreign Affairs Wang Yi struck a more conciliatory tone on U.S. relations during a high
profile press conference on Friday. While Wang said the U.S. should not impose “arbitrary tariffs” or return
goodwill with hostility, he emphasized that the two countries would both be part of the world for a long time,
requiring “peaceful coexistence.” His comments came shortly after China hit back against U.S. President
Donald Trump’s mounting trade tariffs. - Cryptocurrencies decline as Trump’s U.S. bitcoin reserve plan falls short of expectations
Cryptocurrencies fell Thursday night after President Donald Trump signed an executive order creating a
strategic bitcoin reserve for the United States and, separately, a “digital asset stockpile.” The price of bitcoin
was last lower by 3% at $87,586.86, according to Coin Metrics. Shortly after the news broke, it fell to as low
as $84,688.13. Investors initially dumped their coins at the notion of the U.S. having no immediate planned
purchases of bitcoin, per the order, against the backdrop of major weakness in equities. - Broadcom Stock Surges on Strong Earnings, Outlook
Broadcom (AVGO) reported fiscal first-quarter results that topped analysts’ expectations, sending shares
higher in extended trading Thursday. The chipmaker’s revenue grew 25% year-over-year to $14.92 billion,
above the analyst consensus from Visible Alpha. Adjusted net income came in at $7.82 billion, up from $5.25
billion a year earlier and ahead of expectations. The gains came as Broadcom’s AI revenue surged 77% to $4.1
billion. CEO Hock Tan said the company expects “continued strength in AI semiconductor revenue of $4.4
billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data
centers.” Broadcom projected total second-quarter revenue of $14.9 billion, slightly above the analyst
consensus of $14.82 billion. The results also come after a report earlier this week that Broadcom has
been running tests of Intel’s (INTC) chipbuilding process for possible manufacturing contracts. Broadcom has
reportedly considered buying Intel’s chip design arm. Shares of Broadcom jumped 9% in extended trading
Thursday following the release. Despite a tough start to 2025, they’ve gained over 27% in the past 12 months
through the closing bell. - Chinese AI model euphoria continues with another Alibaba stock jump
Alibaba surged on Thursday after the company made one of its artificial intelligence models public, a sign that
the party isn’t over for Chinese tech stocks. The e-commerce giant’s Hong Kong shares jumped as much as
7.5% in Hong Kong after it made its QwQ-32B model public. Alibaba said that the model competes with
DeepSeek’s R1 — the AI startup’s newest flagship model — in terms of performance while being more
energy- and cost-efficient. Alibaba’s shares in Hong Kong and its secondary listing in New York are up close to
70% so far this year. The company is worth $317.7 billion, much smaller than its US counterparts like
Amazon, which has a market capitalization of $2.16 trillion. Last month, Alibaba’s shares rose after a report
said the company was working with Apple to roll out AI features for iPhones in China, news the companies
later confirmed. The stock also jumped on news that Chinese leader Xi Jinping was meeting with the
country’s tech moguls. The share performance is part of a DeepSeek-propelled stock rally for Chinese tech
firms, which are making a comeback after Beijing’s yearslong crackdown on Big Tech. Investors saw Xi’s
meeting with tech leaders, including Alibaba founder Jack Ma, Tencent CEO Pony Ma, and electric vehicle
maker BYD CEO Wang Chuanfu, as a sign he wants to revive the sector. Early last week, Alibaba
announced plans to invest at least 380 billion Chinese yuan, or $53 billion, in cloud computing and AI
infrastructure over the next three years. How much Big Tech companies are spending — part of their capital
expenditure — is a hot topic, as some companies double down on AI-related investments. - Samsara stock plunges despite earnings beat
Shares of Samsara Inc. (NYSE:IOT) tumbled 12.4% in after-hours trading on Thursday, despite the company
reporting better-than-expected fourth quarter results. The connected operations platform provider posted a
ed earnings per share of $0.11 for the fourth quarter, surpassing the analyst estimate of $0.07. Revenue
came in at $346.3 million, exceeding the consensus forecast of $335.35 million and representing a 25% year
over-year increase. The company expects Q1 EPS between $0.05 and $0.06, in line with analysts’ $0.05
estimate. Q1 revenue is projected to be $350-352 million, also aligning with the $351.3 million consensus.
For fiscal year 2026, Samsara forecasts EPS of $0.32-$0.34, above the $0.28 consensus. However, its revenue
guidance of $1.523-1.533 billion fell short of analysts’ $1.528 billion expectation at the midpoint.
“Fiscal year 2025 was another year of durable and efficient growth. We ended the year with close to $1.5
billion of ARR, achieving 33% year-over-year adjusted growth,” said Sanjit Biswas, CEO and co-founder of
Samsara. The company reported ending annual recurring revenue (ARR) of $1.458 billion, up 32% YoY. It now
has 2,506 customers with ARR over $100,000, representing 36% YoY growth. - JD.com stock jumps on strong fourth-quarter profit and revenue beat
The U.S-listed shares of JD.com Inc Adr (NASDAQ:JD) jumped approximately 7% in premarket trading
Thursday after the Chinese e-commerce company beat analyst expectations for fourth-quarter top and
bottom lines. The retail giant posted Q4 earnings per share (EPS) of RMB7.42, topping consensus estimates of
RMB5.44. Revenue for the quarter stood at RMB347 billion, also ahead of the consensus projection of
RMB322.29 billion. “We are pleased to report a strong quarter to close out 2024 amidst rebounding
consumption. Our topline growth returned to double digits year-on-year, and bottom line also achieved
healthy expansion,” said Sandy Xu, CEO of JD.com. “We head into 2025 with more optimism, as consumption
sentiment steadily picks up, and we continue to unlock high-quality growth potentials with our strong
execution of strategic priorities.” Adjusted EBITDA for the quarter rose 30% year over year to 12.53 billion
yuan, ahead of the 11.17 billion yuan estimate. The adjusted EBITDA margin improved to 3.6% from 3.2% a
year earlier, compared to the 3.41% forecast. The adjusted operating margin increased to 3% from 2.5% in
the prior year, exceeding the 2.68% estimate. Fulfillment expenses rose 16% year over year to 20.1 billion
yuan, slightly above the estimated 19.33 billion yuan. - Macy’s Q4 Earnings Surpass Estimates, Gross Margin Declines Y/Y
Macy’s, Inc. M has reported fourth-quarter fiscal 2024 results, wherein the top line lagged the Zacks
Consensus Estimate but the bottom line surpassed the same. Revenues and earnings decreased from the
year-ago quarter’s reported figures. Comparable sales (comps) fell on an owned basis. As the company
concludes the first year of its Bold New Chapter strategy, investments in the customer experience have
driven the highest comps of the year and the strongest performance in the past 11 quarters. Entering the
second year, the company plans to scale successful initiatives for long-term profitable growth and greater
shareholder value. The company has been focusing on enhancing the customer experience, maintaining
operational excellence, and making strategic investments while generating a strong free cash flow and
returning capital to shareholders. M shares have lost 20.4% in the past three months compared with the
industry’s 20.1% decline. - Kroger Q4 Earnings Top Estimates, Digital Sales Rise 11% Y/Y
The Kroger Co. KR reported fourth-quarter fiscal 2024 results, with the top line missing the Zacks Consensus
Estimate but the bottom line exceeding the same. However, both metrics declined year over year.
Management announces guidance for fiscal 2025. Kroger’s fiscal 2024 results highlight the resilience of its
value creation model, driving solid performance and strong free cash flow. Strategic investments have
diversified the business, supporting sustainable growth. With a strengthened balance sheet, Kroger plans to
invest in new store growth, increase its dividend (subject to board approval) and return excess cash to
shareholders through share repurchases. Management remains confident in its 2025 growth plans, backed by
the company’s strong business model and momentum. Kroger delivered adjusted earnings of $1.14 per
share, which beat the Zacks Consensus Estimate of $1.12. However, the bottom line declined from the year
ago period’s $1.34.
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