The tariff threat that the new-ish US administration has been swinging around like a wrecking ball is again panicking the markets, driving down US markets at the end of last week.
Today the ASX is set to follow suit – thanks, Trump – and is expected to slide about 0.8%.
Consumer retreat
Wall Street was also in a fug over weak jobs data and declining consumer sentiment.
The Dow Jones fell 444 points (-1%) while the S&P 500 and Nasdaq lost 1% and 1.4%, respectively.
The Dow snapped a three-week winning streak, closing 0.5% lower for the week, while the S&P 500 declined 0.2% and the Nasdaq fell 0.5%.
In corporate news, Elf Beauty plummeted 19.6% after slashing its full-year sales and profit forecasts, while Ulta Beauty dropped 6.7%.
Amazon.com declined 4.1% due to softness in its cloud computing business and lower-than-expected revenue projections.
Expedia, however, surged 17.3% after reporting strong fourth-quarter earnings.
European markets
European sharemarkets also closed lower, with the FTSEurofirst 300 index down 0.4% but up 0.7% for the week.
The auto sector fell 1.6%, with Porsche tumbling 7.1% following warnings of higher costs impacting 2025 profits.
The UK’s FTSE 100 index declined 0.3% but managed a 0.3% gain over the week.
Nonfarm payrolls rose by 143,000 in January, below the forecast of 175,000, though the unemployment rate dropped to 4% (survey: 4.1%).
The participation rate edged higher to 62.6% and average hourly earnings increased by 0.5%, maintaining a 4.1% annual growth rate.
The University of Michigan consumer sentiment index fell to 67.8 in February, its lowest level in seven months.
US government bond yields increased as revisions to jobs data and a lower unemployment rate suggested a solid labour market.
The US 10-year Treasury yield rose by six basis points to 4.49%, while the two-year yield jumped eight basis points to 4.29%.
For the week, the 10-year yield fell five points, while the 2-year yield rose eight points.
Currencies and commodities
Currency markets were mixed against the US dollar. The Euro declined from US$1.0400 to US$1.0312 and settled near US$1.0325 at the US close.
The Australian dollar weakened from 62.98 US cents to 62.56 US cents, closing at 62.70 US cents.
The Japanese yen strengthened, moving from JPY152.31 per US dollar to JPY150.94 before ending near JPY151.40.
Oil prices gained on Friday following new sanctions on Iran’s crude exports.
Brent crude rose by 37 US cents (+0.5%) to US$74.66 per barrel, while US Nymex crude increased by 39 US cents (+0.6%) to US$71.00 per barrel.
Despite the daily gains, Brent crude lost 1.3% over the week, with Nymex down 2.1%.
Base metals advanced, with copper futures surging 2.9% to a three-month high, supported by renewed demand from China post-Lunar New Year.
Aluminium futures edged up 0.1%. For the week, copper climbed 7.5% and aluminium rose 1.5%.
Gold prices also rose, gaining US$10.90 (+0.4%) to US$2,887.60 per ounce as escalating US-China trade tensions fuelled demand for safe-haven assets.
Spot gold reached a record high of US$2,886.62 before closing near US$2,861. Bullion advanced 1.9% over the week.
Iron ore prices increased by 14 US cents (+0.1%) to US$106.37 per tonne, a near four-month high, as China’s steel demand strengthened post-holidays. Iron ore gained 0.6% for the week, supported by positive sentiment in the property sector.
In Australia, the monthly business turnover indicator is due, while earnings results from Ansell, CAR Group and JB Hi-Fi are expected.
In the US, consumer inflation expectations data will be released, along with McDonald's earnings.