With President Donald Trump confirming impending tariffs, US equities continued to decline on Monday, escalating economic worries. Trump announced plans to levy taxes on imported agricultural products beginning 2 April 2025, which further exacerbated the market's slump. While the Dow sank more than 700 points, the S&P 500 fell 1.90%, and the Nasdaq 100 fell 2.60%. The ISM report showed US manufacturing slowed more than expected, with the new orders index seeing its steepest decline since March 2022, while price pressures intensified. New tariffs set to take effect tomorrow include a 25% duty on imports from Mexico and Canada, along with an additional 10% tariff on Chinese goods. The tech sector was hit hard, with Nvidia plunging 7.50% following news that Singapore is investigating whether exports through Malaysia may have illegally bypassed US restrictions on chip sales to China.

In contrast, European markets surged on Monday, buoyed by a consensus among policymakers to increase defence spending and work toward a ceasefire agreement between Ukraine and Russia. The Eurozone's STOXX 50 climbed 1.60% to a record 5 551, while the STOXX 600 advanced 1.20% to an all-time high of 564. Over the weekend, European leaders convened to strategize a potential peace deal for Ukraine, committing to higher military expenditures to support its implementation.

The ALSI gained over 1%, while the rand weakened, trading at R18.41/$ at 18h00. The seasonally adjusted Absa Purchasing Managers’ Index (PMI) dropped to 44.7 in February 2025 from 45.3 the previous month, marking the fourth consecutive contraction in manufacturing activity and the steepest decline since August 2024.

Asian markets had a mixed session. The Hang Seng rose 0.30% to close at 23 006, rebounding from a two-day slump as investors anticipated the start of China’s National People’s Congress. Analysts expect officials to set a 5% growth target and a 4% budget deficit for the year. Some traders remained hopeful that US tariffs on China could be delayed or softened after President Trump confirmed an additional 10% levy on all Chinese imports starting 4 March 2025, following the 10% tariffs implemented on February 4. Meanwhile, Japan’s Nikkei 225 surged 1.7% to 37 785, recovering some of last week’s losses, supported by Wall Street’s strong close on Friday. However, caution persisted ahead of the March 4 deadline for the U.S. to impose a 25% tariff on Mexico and Canada, along with an additional 10% duty on Chinese goods.

Brent crude oil futures fell 1.60% to $71.60 per barrel, their lowest level since 9 December 2025, as reports suggested OPEC+ would proceed with a planned output increase in April, raising concerns about global supply. The decline was further fuelled by worries that new US tariffs on Canada and Mexico could slow economic growth and weaken oil demand.