KUALA LUMPUR March 10, 2025 – Wall Street futures fell early Monday as investors turned to safe-haven currencies like the yen and Swiss franc. Concerns over China’s rising deflationary pressures, a slowing U.S. economy, and escalating trade tensions added to market jitters.
As of 01:37 GMT, S&P 500 futures were down 0.5%, while Nasdaq futures slipped 0.6%. Hong Kong’s Hang Seng Index (.HSI) dipped 0.1%, along with mainland China’s blue-chip index (.CSI), Reuters reported.
Taiwan’s stock index (.TWII) slipped 0.4% on Monday, while Japan’s Nikkei (.N225) managed a 0.2% gain after fluctuating between small ups and downs.
The yen strengthened 0.6% to 147.245 per dollar, while the Swiss franc rose 0.4% to 0.8773 per dollar as investors moved toward safe-haven currencies. U.S. Treasury yields also fell, with the 10-year yield dropping to 4.257% and the two-year yield dipping to 3.956%.
New data from China showed consumer prices fell at their fastest pace in over a year in February, while producer price deflation continued for the 30th straight month.
In response, Beijing announced new stimulus measures aimed at boosting consumer spending and supporting artificial intelligence innovation. These announcements came during the ongoing National People’s Congress meetings, which run until Tuesday.
In the U.S., economic concerns grew after a weaker-than-expected jobs report on Friday pointed to a slowing labor market. Speaking to Fox News on Sunday, President Donald Trump refused to say whether his tariffs on China, Canada, and Mexico could lead to a recession.
Kyle Rodda, a senior financial markets analyst at Capital.com, noted that Trump’s approach to economic policy seems more rigid this time around. “Unlike before, when signs of a slowdown or market drop would prompt a policy shift, he now appears committed to structural changes, even if it means sacrificing short-term growth,” he said.
Meanwhile, the U.S. dollar index edged down 0.1% to 103.59, while the euro rose 0.3% to $1.0866 and the British pound gained 0.2% to $1.2946.
Trump also hinted at potential new trade measures, saying tariffs on Canadian dairy and lumber could be coming soon. He also revealed he is considering sanctions on Russian banks and tariffs on Russian goods as a way to pressure Moscow to end the war in Ukraine.
