Australian shares were slightly lower, while US futures fell, weighed by tech stocks. Shares in Marvell Technology Inc. dropped in after-hours New York trading late Wednesday after delivering an underwhelming revenue forecast, disappointing investors expecting a greater payoff from the AI boom.
The White House said auto tariffs on Mexico and Canada would face a one-month delay. After talks with Canadian Prime Minister Justin Trudeau, White House press spokesperson Karoline Leavitt said Trump is open to hearing about additional tariff exemptions.Tariff relief “in the form of a tangible deal would be best case scenario for equities,” said Kevin Brocks, director at 22V Research, but cautioned that “sustained uncertainty is an economic headwind in and of itself.”
An index of the dollar was steady after falling 1% Wednesday, weakening against most major currencies, with losses particularly stark against the euro. Overnight, the yen climbed around 0.6% to just below 149 per dollar.
Treasuries were little changed Thursday after declining in the prior session when the US 10-year yield added three basis points to 4.28%. European bonds plunged Wednesday. Yields on benchmark German 10-year bunds soared 30 basis points, the most since 1990, after chancellor-in-waiting Friedrich Merz outlined a sweeping fiscal overhaul late Tuesday. The euro strengthened to levels not seen since November.
The sharp moves in Europe came as Germany said it would spend hundreds of billions of euros for defense and infrastructure investments in a dramatic shift that upends its ironclad controls on government borrowing.Broadcom Inc., another chipmaker tied to the AI surge, fell as well in the wake of Marvell’s results. Its stock was down 3.5% in after-hours trading. Broadcom is set to deliver its own quarterly report on Thursday.
In Asia, data set for release includes unemployment in the Philippines, inflation in Vietnam, and an interest rate decision in Malaysia.
In China, officials announced an expansion target of about 5% for 2025 at its annual parliamentary session Wednesday, marking the first time in more than a decade Beijing had set the same goal for three straight years. President Xi Jinping signaled China’s determination to push ahead with an ambitious growth goal this year, despite the trade war.
Later Thursday, the European Central Bank and its counterpart in Turkey will hand down interest rate decisions.
US data expected Thursday includes initial jobless claims ahead of Friday’s monthly payrolls figures. Options traders expect the S&P 500 to move 1.3% in either direction, in what would be the most for any jobs day since the regional bank turmoil in March 2023.
Oil benchmarks fell more than 2% Wednesday as traders balanced the effect of US tariffs on demand with signs from OPEC+ it may boost supply.
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