Chinese Markets Closed for Lunar New Year Amid Tariff Changes and Economic Data Releases
The article discusses the closure of Chinese markets for Lunar New Year and highlights recent tariff changes imposed by Trump. Key economic data from China and India's budget impact are also covered.
Chinese markets remain closed for the Lunar New Year holiday.
Caixin/S&P Global services manufacturing activity data for China will be released later in the day. The PMI is expected to come in at 50.5, according to Reuters poll estimates.
On Saturday, Trump signed an order implementing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China. Energy exports from Canada will face a reduced 10% tariff, which are set to come into effect on Tuesday stateside.
The U.S. conducts around $1.6 trillion in annual business with these three countries combined.
Investors will also be assessing the market impact of India's Union Budget released over the weekend that offered a huge income tax relief to the country's middle class. The Indian government also pledged to reduce its fiscal deficit to 4.4% of its GDP for the year beginning April 1, a decrease from a revised 4.8% for the current year, amongst other measures.
Last Friday in the U.S., the three major averages closed lower. The S&P 500 shed 0.50% to end at 6,040.53, while the Dow Jones Industrial Average tumbled 337.47 points, or 0.75%, weighed down by a decline in Chevron. The 30-stock Dow ended the session at 44,544.66. The tech-heavy Nasdaq Composite slipped 0.28% to 19,627.44.
