Equity-index futures retreated and Asian shares edged down in a cautious start to the week after President Donald Trump dialed up trade tensions by announcing a 30% tariff on goods from the European Union and Mexico.
Contracts for the S&P 500 fell 0.4% and those for European stocks dipped 0.6%. Asian shares were flat, with small gains in Hong Kong and mainland China.
Silver gained to trade near the highest level since 2011. Bitcoin breached $120,000 for the first time.
The yen rose against the dollar while bond futures dropped after a report that Bank of Japan officials may consider raising at least one of their inflation forecasts at a policy meeting later this month.
Trump’s latest tariff threats are testing the market’s resilience after the US leader ratcheted up trade measures on everyone from Canada to Brazil to Algeria last week.
Despite warnings of complacency, investors have so far behaved as if they’re counting on the president to back down, having seen previous U-turns from his administration. The S&P 500 and the MSCI All Country World Index both hit records this month.
