Market Highlights π‘ - 10 March 2025
U.S. Markets Mostly Rise After Fed Comments; Hong Kong's Hang Seng Index Hits 3-Year High This Week
πΊπΈ S&P 500 Index: 0.55% π
πΊπΈ Nasdaq Index: 0.70% π
πͺπΊ Stoxx 600 Index: -0.46% π
π―π΅ Nikkei 225 Index: -2.17% π
ππ° Hang Seng Index: -0.57% π
π¨π³ CSI 300 Index: -0.31% π
πΈπ¬ Straits Times Index: -0.07% π
U.S. markets closed higher on Friday, with the S&P 500 and Nasdaq Composite gaining 0.6% and 0.7%, respectively, after Federal Reserve Chair Jerome Powell stated that the economy is in "good shape." However, uncertainty over U.S. trade policy led to the biggest weekly drop in months.
U.S. nonfarm payrolls increased by 151,000 in February, missing the expected 160,000. The unemployment rate was 4.1%, slightly higher than the 4.0% forecast, while average hourly earnings rose 0.3% month-over-month, in line with expectations.
Asia-Pacific markets mostly declined, with Hong Kong's Hang Seng Index and China's CSI 300 Index down 0.6% and 0.3%, respectively, as investors took profits after the biggest weekly gains in two months.
China's exports slowed to a 2.3% year-over-year increase in the first two months of 2025, while imports fell 8.4%βthe steepest decline since July 2023βdue to businesses rushing shipments before impending U.S. tariffs.
China's inflation rate fell into negative territory for the first time since January last year, dropping 0.7% year-over-year in February, worse than the expected 0.4% decline, mainly due to lower prices for food, tobacco, and alcohol.
Upcoming Events
Monday: Japan will release its average cash earnings data, and the EU will report Germany's industrial production figures.
Tuesday: The U.S. will publish JOLTS job openings data, Malaysia will report its unemployment rate, and Japan will release its final quarterly GDP growth rate.
Wednesday: The U.S. will release year-over-year CPI and core CPI data, while China will announce new yuan loans.
Thursday: The U.S. will report core PPI, PPI monthly rates, and jobless claims.
Friday: The U.S. will release the preliminary Michigan Consumer Sentiment Index.
Things to Know Today
1. China imposed tariffs on over $2.6 billion worth of Canadian agricultural products and food in response to Ottawa's tariff measures announced in October, escalating trade tensions.
China tariff
2. Morgan Stanley $Morgan Stanley(MS)$ downgraded its 2025 U.S. economic growth forecast, citing stronger-than-expected tariff impacts and persistent labor market tightness driving inflation.
Morgan Stanley
3. The U.S. Department of Justice withdrew its proposal to force Alphabet's Google $Alphabet(GOOG)$ to divest investments in AI companies, including OpenAI rival Anthropic, aiming to enhance competition in online search.
US Department of Justice
4. Federal Reserve Chair Jerome Powell stated that the central bank will wait and assess the impact of President Donald Trump's aggressive policy measures before making further decisions on interest rates.
Jerome Powell
5. President Donald Trump warned that he might impose broader "massive" sanctions and tariffs on Russia unless it agrees to a peace deal with Ukraine.
Trump threatened Russia
Key Takeaway
Powell's stance aligns with broader sentiment: while government adjustments may ultimately strengthen the country's financial foundation, the speed and unpredictability of these changes make forecasting and planning increasingly difficult.
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Here are the market highlights on 10th March 2025:
U.S. markets closed higher, with the S&P 500 and Nasdaq Composite gaining 0.6% and 0.7% respectively. Federal Reserve Chair Jerome Powell's statement that the economy is in "good shape" contributed to the market's positive performance.
The Hong Kong Hang Seng Index hit a 3-year high earlier this week, but it declined by 0.57% on 10th March.
The Asia-Pacific markets mostly declined, with Hong Kong's Hang Seng Index and China's CSI 300 Index down 0.6% and 0.3% respectively. Investors took profits after the biggest weekly gains in two months.
U.S. nonfarm payrolls increased by 151,000 in February, slightly missing the expected 160,000. The unemployment rate was 4.1%, slightly higher than the forecasted 4.0%. Average hourly earnings rose 0.3% month-over-month, in line with expectations.
China's exports slowed to a 2.3% year-over-year increase in the first two months of 2025, while imports fell 8.4%. Trade tensions with the U.S. and the impact of tariffs are contributing factors.
Morgan Stanley downgraded its 2025 U.S. economic growth forecast due to stronger-than-expected tariff impacts and labor market tightness driving inflation.
The U.S. Department of Justice withdrew its proposal to force Alphabet's Google to divest investments in AI companies, aiming to enhance competition in online search.
Federal Reserve Chair Jerome Powell stated that the central bank will wait and assess the impact of President Donald Trump's aggressive policy measures before making further decisions on interest rates.
President Donald Trump warned of imposing broader "massive" sanctions and tariffs on Russia unless it agrees to a peace deal with Ukraine.
For more detailed information and analysis, I recommend reviewing the following news articles:
China Bypassing USD & Securing Assets From U.S. A New System For Global Economy
Gold, China, Buffett's bubble? - News and my thoughts from last week
Singapore, HK Face Growth Risks Over US Tariff War With China
Please note that the information provided is for reference purposes only and should not be considered as investment advice. Investing in the financial markets carries risks, and it is essential to conduct thorough research and seek professional advice before making any investment decisions.