On Monday, February 3rd, global stock markets plummeted, the US dollar rose, and the Canadian dollar and peso fell sharply.
According to CCTV News, on February 1st local time, the US government announced a 25% tariff on imported goods from Canada and Mexico. The US also imposed a 10% tariff on products imported from China, citing issues such as fentanyl. Trump also stated that tariffs on the European Union &#34;will definitely happen.&#34;
Deutsche Bank analyst George Saravelos stated, &#34;This tariff measure is one of the most hawkish protectionist policies we can imagine, and the market needs to reassess the risk premium of the trade war from a structural and long-term perspective.&#34;
Eric Winograd, chief economist at AllianceBernstein, said: &#34;The most direct impact is a stronger dollar; in the current context of the trade war, holding long positions in the dollar is the most straightforward and clear trading strategy.&#34;
The Euro STOXX 50 index futures fell 3%, and US stock index futures also dropped significantly, with S&amp;P 500 index futures contracts down 1.69% and Nasdaq 100 index futures contracts down 2.22%.
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The US dollar rose, with the dollar index increasing by over 1%.
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<h2>Asian Stock Markets, Bonds, and Currencies All Decline</h2>
The MSCI Asia-Pacific index fell nearly 2%.
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The Nikkei 225 index dropped 2.27%, and the TOPIX index fell 1.8%. Japanese automotive stocks fell across the board, with Nissan down over 10%, Mazda down nearly 8%, Honda down over 6%, and Toyota down more than 4%. The yen depreciated by 0.29% against the dollar, trading at 155.65. The yield on Japan's 10-year government bonds briefly reached 1.26%, the highest since 2011.
<img src="https://pub.pbkrs.com/uploads/2025/6b937443625da7ba6d490197baee2299?x-oss-process=style/lg" alt="" original-src="https://pub.pbkrs.com/uploads/2025/6b937443625da7ba6d490197baee2299"/><img src="https://pub.pbkrs.com/uploads/2025/85b4f2bb22dfdc8227a95f3360f84720?x-oss-process=style/lg" alt="" original-src="https://pub.pbkrs.com/uploads/2025/85b4f2bb22dfdc8227a95f3360f84720"/><img src="https://pub.pbkrs.com/uploads/2025/bc40251ed07737bf6ad43f621316cecc?x-oss-process=style/lg" alt="" original-src="https://pub.pbkrs.com/uploads/2025/bc40251ed07737bf6ad43f621316cecc"/>
The South Korean KOSPI index fell by 2.84%, and the Korean won depreciated by 0.9% against the US dollar, reporting at 1468.8.
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The Australian S&amp;P/ASX 200 index saw a maximum decline of 2%. The Taiwan Stock Exchange Weighted Index dropped 3.57% at the beginning of trading, with TSMC falling 6.6%; the New Taiwan dollar depreciated by 1% against the US dollar.
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<h2>Canadian Dollar, Peso, Euro Plummet</h2>
The Canadian dollar exchange rate against the US dollar fell by 1.36%, reporting at 1.4727, reaching the lowest level since 2003.
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The Mexican peso dropped by 2.66%, reporting at 21.23. Gabriela Siller, chief economist at Banco Base in Mexico, stated: &#34;If tariffs continue for several months, the exchange rate will reach a historical high. If tariffs continue to be enforced, it will lead to structural changes in the Mexican economy... Mexico may fall into a deep recession and take years to recover.&#34;
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The euro fell by more than 1%.
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<h2>Oil Prices Rise</h2>
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Source: Wall Street Watch.

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UVIX

The Euro STOXX 50 index futures and U.S. stock index futures fell sharply. Asian stock markets, bonds, and currencies all declined, with the MSCI Asia-Pacific Index dropping nearly 2%

- On February 1, the U.S. government announced a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on Chinese goods, leading to a significant global market downturn.  
- Analysts predict that these tariffs represent a highly aggressive protectionist policy, prompting a reevaluation of trade war risks, with the dollar strengthening as a direct consequence.  
- Major stock indices, including the Euro STOXX 50 and U.S. futures, experienced sharp declines, while currencies like the Canadian dollar and Mexican peso fell to historic lows, raising concerns about potential long-term economic impacts.

LB Select

Trump starts a trade war, the dollar and oil prices rise, global stock markets plummet, and the Canadian dollar and peso fall sharply