- Asian Stocks Fluctuate After Churn in Wall Street: Markets Wrap
Asian equities traded in a tight range Thursday after two weeks of heightened volatility inflicted losses on
hedge funds and caused strategists across Wall Street to cut their forecasts for US stocks. A gauge of regional
shares swung between small gains and losses as shares in mainland China and Hong Kong fluctuated. Futures
contracts for the tech-heavy Nasdaq 100 and the S&P 500 declined in Asian trading after cooler-than-forecast
US inflation helped lift stocks Wednesday. Treasuries and a gauge of the dollar strength were little changed.
The range-bound moves come after frenzied selling in the last two weeks driven by higher unemployment
rate and federal workforce job cuts raised the prospect of a slowdown in growth in the US and pushed the
S&P 500 to the brink of a correction. President Donald Trump’s escalating tariff war and global geopolitical
realignment over Ukraine added to concerns with some investors considering moving investments from the
US toward Asia. - S&P 500 closes higher on soft inflation report, Nasdaq jumps 1% as traders snap up tech shares
The Nasdaq Composite rose on Wednesday after a soft inflation report eased concerns about the economy
and as investors snapped up beaten-up technology shares. The tech-heavy benchmark added 1.22% and
closed at 17,648.45, while the S&P 500 gained 0.49% to end at 5,599.30. The Dow Jones Industrial Average
slipped 82.55 points, or 0.2%, to settle at 41,350.93. Though the tech sector is off more than 3% week to
date, the cohort bounced on Wednesday to lead the S&P 500 higher. Nvidia gained 6.4%, and AMD added
more than 4%. Meta Platforms advanced 2% and Tesla jumped more than 7%. - Oil eases on concerns about escalating tariff wars’ impact on global economy
Oil prices eased on Thursday after surging the day before as worries about the impact of intensifying tariff
wars on global economic growth and energy demand outweighed the positive sentiment from a larger-than
expected draw in U.S. gasoline stocks. Brent futures fell 7 cents, or 0.1%, to $70.88 a barrel by 0107 GMT,
while U.S. West Texas Intermediate crude futures shed 11 cents, or 0.2%, to $67.57 a barrel. Both
benchmarks rallied about 2% on Wednesday as U.S. government data showed tighter-than-expected oil and
fuel inventories. U.S. crude stockpiles rose by 1.4 million barrels in the latest week, Energy Information
Administration (EIA) data showed on Wednesday, which was less than the 2 million-barrel rise forecasters
had expected. EIA/S. U.S. gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel
draw expected by analysts, while distillate stocks also dropped more than anticipated. The EIA data also
showed that crude inventories in the U.S. Strategic Petroleum Reserve (SPR) rose to their highest level since 2022. - Gold rises as tariff uncertainty, cooler inflation data lend support
Gold prices edged higher on Thursday as uncertainty over tariffs persisted, driving safe-haven demand, while
a cooler-than-expected U.S. inflation print also supported bullion by strengthening expectations of rate cuts.
Spot gold was up 0.4% at $2,943.66 an ounce, as of 0300 GMT, while U.S. gold futures firmed 0.2% to
$2,951.90. “I think $3,000 is the next logical target, likely reached sometime over the next several months,”
said Marex analyst Edward Meir. “CPI data was encouraging but I suspect that the tariff increase has yet to be
picked up in the inflation data.” Data showed that the U.S. consumer price index increased less than expected
last month, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports
that are expected to raise the cost of most goods in the months ahead. Lower inflation leaves more room for
the U.S. Federal Reserve to cut interest rates, and non-yielding gold thrives in a low-interest rate setting.
Trump early this month triggered a trade war, increasing the tariffs on goods from China to 20% and
imposing a new 25% duty on Canadian and Mexican imports. He later dialed back and provided a one month
exemption for any goods that meet the rules of origin under the U.S.-Mexico-Canada Agreement on trade.
Trump also reversed course on Tuesday afternoon on a pledge to double tariffs on steel and aluminum from
Canada to 50%, hours after announcing the higher tariffs. Trump’s tariffs are widely expected to stoke
inflation and economic uncertainty, and have prompted safe-haven gold to reach a record high of $2,956.15
on February 24. Investors now await U.S. Producer Price Index (PPI) data due later in the day to gain further
insights into the Fed’s monetary policy. Spot silver rose 0.1% to $33.26 an ounce, platinum added 0.4% to
$987.90, and palladium gained 0.9% to $957.60. - We ‘must act’: Europe retaliates against Trump’s 25% tariffs on steel and aluminum imports
The European Union has reacted swiftly to U.S. President Donald Trump’s 25% tariffs on steel and aluminum
imports that came into effect Wednesday, retaliating with its own punitive countermeasures that it said were
needed to protect consumers and businesses. The White House confirmed the duties — which will affect
Canada, Australia, the EU and others — late Tuesday, but said that Trump no longer planned to raise tariffs
on the metals from Canada to 50%. The EU responded swiftly, saying it would impose counter-tariffs on 26
billion euros ($28.33 billion) worth of U.S. goods starting in April. European Commission President Ursula von
der Leyen on Wednesday told reporters that the EU “must act to protect businesses and consumers.”
“We deeply regret this measure [by the U.S.]. Tariffs are taxes, they are bad for business and worse for
consumers, they are disrupting supply chains, they bring uncertainty for the economy, jobs are at stake,
prices are up and nobody needs that, neither side needs that,” she said during a news conference.
Trade ties between the U.S. and EU “are the biggest in the world,” von der Leyen said, and the relationship
had brought “prosperity and security to millions of people” as well as job creation on both sides of the
Atlantic, she noted. The EU’s two-pronged approach will see previously suspended tariffs reimposed on 8
billion euros of U.S. exports, and a slew of new countermeasures on 18 billion euros of goods in a move von
der Leyen had earlier described as “strong but proportionate.” “We will always remain open to
negotiation,” she added in a statement. The EU said the tariffs will affect up to 26 billion euros worth of the
bloc’s exports to the U.S. They apply to industrial-grade steel and aluminum, other steel and aluminum
semifinished and finished products, and also their derivative commercial products, such as machinery parts
and knitting needles. Speaking to reporters on Wednesday following the EU’s announcement, Trump said:
“As you know we’re going to be doing reciprocal tariffs, so whatever they charge us we’re going to be
charging them.” - Trump dashes hopes for last-minute Canada and Mexico deal ahead of 25% tariffs
President Donald Trump said that on Tuesday he will impose 25% tariffs on goods imported from Canada and
Mexico, dashing hopes for a last-minute deal that could avoid a trade war with two of the U.S.′ top trading
partners. Trump told reporters there was “no room left for Mexico or for Canada” to negotiate an alternative
to the tariffs, which he has threatened to impose for weeks. “They’re all set. They go into effect tomorrow,”
the president said at a White House event Monday. - U.S. budget deficit surged in February, passing $1 trillion for year-to-date record
The U.S. debt and deficit problem worsened during President Donald Trump’s first month in office, as the
budget shortfall for February passed the $1 trillion mark even though the fiscal year is not yet at the halfway
point. Government spending eased slightly on a monthly basis though it still far outpaced revenue, according
to a Treasury Department statement Wednesday. The deficit totaled just over $307 billion for the month,
nearly 2½ times what it was in January and 3.7% higher than February 2024. Receipts and expenditures set
records for the month, a Treasury spokesman said. For the year, the deficit totaled $1.15 trillion through the
first five months of fiscal 2025. The total is about $318 billion more than the same span in 2024, or roughly
38% higher, and set a record for the period. Net costs to finance the $36.2 trillion national debt edged lower
to $74 billion for the month. However, the total net interest payments year to date rose to $396 billion, just
behind national defense and health. Social Security and Medicare are the largest costs in the U.S. budget.
The deficit swelled in the final three years of former President Joe Biden’s term, growing from $1.38 trillion
to $1.83 trillion. Trump has made getting the government’s fiscal house in order a priority since taking office.
Since taking over, he created the so-called Department of Government Efficiency, led by Elon Musk. The
advisory board has spearheaded job cuts across multiple departments in addition to early retirement
incentives. A Treasury spokesman said there were no apparent impacts yet from the DOGE efforts but
referred further comment to the Musk-led panel. At the same time, Trump wants to extend the Tax Cuts and
Jobs Act, spearheaded during his first administration. While Trump has touted growth that the tax reductions
would bring, multiple think tanks say renewing the act also would add $3.3 trillion to the deficit over the next
decade. - Inflation rate eased to 2.8% in February, lower than expected
Prices for goods and services moved up less than expected in February, providing some relief as consumers
and businesses worry about the looming impact tariffs might have on inflation, the Bureau of Labor Statistics
reported Wednesday. The consumer price index, a wide-ranging measure of costs across the U.S. economy,
ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to
the Labor Department agency. The all-item CPI had increased 0.5% in January. Excluding food and energy
prices, the core CPI also rose 0.2% on the month and was at 3.1% on a 12-month basis, the lowest reading
since April 2021. The core CPI had climbed 0.4% in January. Economists surveyed by Dow Jones had been
looking for 0.3% increases on both headline and core, with respective annual rates of 2.9% and 3.2%,
meaning that all of the rates were 0.1 percentage point less than expected. Stock market indexes were mixed
after the release after initially moving higher. Treasury yields rose. Markets have been highly volatile as the
Dow Jones Industrial Average has slipped 6% over the past month. - India’s inflation rate dips to cooler-than-expected 3.61% in February, below central bank’s target
India’s inflation rate in February fell to a lower-than-expected 3.61% in February as vegetable prices cooled,
the country’s Ministry of Statistics and Programme Implementation said Wednesday. Economists polled by
Reuters had expected a reading of 3.98% for the period. This is first time since last summer that inflation has
come in below the RBI’s target of 4% and marks the lowest monthly print since July 2024. Food inflation,
which is a key constituent of the country’s CPI, hit 3.75%, with vegetable prices prices dropping by an annual
1.07%, compared with a 11.35% hike in January. Prices for pulses likewise contracted by 0.35% in February,
versus a 2.59% hike in in the previous month. Price growth for cereals and products meanwhile eased to 6.1%
in February, little changed from the 6.24% of January. In a note on March 5, Bank of America analysts flagged
that vegetable prices in particular have fallen sharply since October given higher supplies, especially for
potatoes and tomatoes. “We do expect the correction in vegetable prices to start reversing, possibly as early
as March, with risks from heatwaves and weather-related disruptions to crops,” they added. The dip in
inflation and slowing growth in the world’s fifth-largest economy could bolster the case for India’s central
bank to press ahead with further interest rate cuts, after implementing its first trim in nearly five years early
last month. The move, which took the country’s repo rate down by 25 basis points to 6.25% at the time, took
place as India’s GDP expanded by a weaker-than-expected 6.2% in the fourth quarter. More broadly, the
Indian economy grew by just 6.5% in the financial year to March 2025 — a sharp slowdown from 9.2% the
year before. Yet the RBI Monetary Policy Committee has previously flagged ongoing concerns over
headwinds in global markets, which are currently being rattled by a spate of tariff wars. - Ferrari CEO says carmaker is ‘ready’ with countermeasures as Europe’s automakers brace for tariffs
The chief executive of Ferrari on Thursday said the company was prepared for potential U.S. tariffs on
European automakers. “We are ready with some countermeasures,” Ferrari CEO Benedetto Vigna told
CNBC’s Robert Frank at CONVERGE LIVE in Singapore on Thursday. “We are watching what’s going to happen
in the next month, next weeks … we are on the same boat in terms of tariffs,” he added. European
automakers have been grappling with trade policy uncertainty in recent months, with the threat of U.S.
import tariffs raising alarm bells among many original equipment manufacturers (OEMs). Tariffs are expected
to have a profound impact on the auto industry, given highly globalized supply chains and a heavy reliance on
manufacturing operations across North America, particularly Mexico. Analysts said late last year that they
expect Ferrari to be something of an exception among Europe’s automotive sector. The company, which is
thought to be well placed to pass on any increase in prices, exclusively produces its cars in Italy.
Shares of the Milan-listed stock are up around 0.5% year-to-date. - Intel shares rose 4.6% after Reuters reported that TSMC has pitched Nvidia, Advanced Micro Devices,
Broadcom and Qualcomm about taking stakes in a joint venture that would operate Intel’s factories
Under the proposal, while TSMC would run the operations of Intel’s foundry business, it would not own more
than 50%, Reuters reported, citing people familiar with the matter. Any final deal would need approval from
the Trump administration. Separately, afterhours, Intel named Lip-Bu Tan as its next CEO. Tan, a
semiconductor veteran and former head of Cadence Design Systems, will assume the role on March 18 and
rejoin the board. Intel’s stock rallied a further 10.4% afterhours. - Adobe gave a disappointing outlook for revenue growth in the current quarter, with sales expected to
be $5.77 billion to $5.82 billion
Analysts, on average, estimated $5.8 billion. Profit, excluding some items, will be $4.95 a share to $5 a share,
compared with the average projection of $5. The company’s stock declined 4% in afterhours trading, and has
slipped 24% over the past 12 months, with investor sentiment driven by views of Adobe’s AI strategy. Fiscal
first-quarter revenue increased 10% to $5.71 billion, topping the $5.66 billion anticipated by Wall Street.
Remaining performance obligations, a metric of future sales, were $19.7 billion, compared with the average
estimate of $19.8 billion. The digital media unit, which includes Adobe’s flagship creative and document
processing software, posted a 11% increase in sales to $4.23 billion. Revenue from the unit that includes
marketing and analytics software rose 10% to $1.41 billion. Adobe reaffirmed its FY2025 financial targets and
is scheduled to host an event for investors next week, where it will provide additional long-range financial
information and more details of its AI strategy. - SentinelOne (NYSE:S) Exceeds Q4 Expectations But Stock Drops 15%
Cyber security company SentinelOne (NYSE:S) reported Q4 CY2024 results topping the market’s revenue
expectations, with sales up 29.5% year on year to $225.5 million. On the other hand, next quarter’s revenue
guidance of $228 million was less impressive, coming in 3.3% below analysts’ estimates. Its non-GAAP profit
of $0.04 per share was $0.03 above analysts’ consensus estimates. SentinelOne (S) Q4 CY2024 Highlights:
Revenue: $225.5 million vs analyst estimates of $222.4 million (29.5% year-on-year growth, 1.4% beat);
Adjusted EPS: $0.04 vs analyst estimates of $0.01 ($0.03 beat); Adjusted Operating Income: $2.70 million vs
analyst estimates of -$6.32 million (1.2% margin, significant beat); Management’s revenue guidance for the
upcoming financial year 2026 is $1.01 billion at the midpoint, missing analyst estimates by 2% and implying
22.9% growth (vs 32.7% in FY2025); Operating Margin: -35.6%, up from -46.6% in the same quarter last year;
Free Cash Flow was -$8.92 million compared to -$12.65 million in the previous quarter; Customers: 1,411
customers paying more than $100,000 annually; Annual Recurring Revenue: $920.1 million at quarter end, up
27% year on year; Market Capitalization: $6.03 billion. “Our strong finish to the fiscal year reflects solid
execution and the accelerating adoption of our platform solutions,” said Tomer Weingarten, CEO of
SentinelOne. - Palantir Stock Climbs as Walgreens and Heineken Revealed as New Clients
Palantir (PLTR) shares jumped after the company unveiled a roster of new customers it said will attend its
artificial intelligence event Thursday. Walgreens (WBA) and Heineken are among the AI analytics company’s
latest clients, along with convenience store operator RaceTrac, data digitization firm Ripcord, and others,
Palantir said late Tuesday. Those companies, along with AT&T (T), Delta Air Lines (DAL), JD Power, and more
are expected to speak at AIPCon. Palantir described the event as a showcase of how customers “drive
outcomes” using its Artificial Intelligence Platform. Thursday’s AIPCon will be the sixth the company has held
since 2023. Shares of Palantir gained more than 4% intraday Wednesday and have more than tripled in value
over the past 12 months. However, a recent selloff driven by widespread market uncertainty has dropped the
stock about 33% from its record high in February. - PepsiCo shares fell 2.7% after Jefferies cut its rating to hold from buy, saying the stock’s current price
offers “limited upside.”
Analyst Kaumil Gajrawala notes “Frito continues to struggle, which will weigh on the multiple”. “It may be
several quarters before Frito inflects, and we don’t understand the drivers”. There are better opportunities
elsewhere in beverages sector including Coca-Cola, Keurig Dr Pepper and Monster Beverage. PT trimmed to
$170 from $171.
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