- US delays tariffs on Canada and Mexico, improving market sentiment.
- Dow futures drop 100 points after China announces retaliatory tariffs on US imports.
- Indian stock markets see a boost with Sensex and Nifty rebounding following US tariff news.
Global markets reacted positively to news that the US delayed its planned tariffs on Canada and Mexico, which helped strengthen both currencies and global sentiment.
In India, the delay in tariffs from the US lifted investor optimism, helping the Sensex and Nifty recover from a recent decline. As the Sensex surged over 400 points, the market was buoyed by the announcement, though some sectors like FMCG showed weakness.
Indian Stock Market Rises Amid Global Trade Uncertainty
India’s stock market opened higher on February 4, 2025, as the US delayed tariff hikes on Canada and Mexico. The move provided a temporary boost to investor confidence, with the Sensex and Nifty gaining more than 0.5%. Among the leading sectors, metals performed well, while FMCG struggled. The rally was also fueled by news of President Trump’s decision to freeze tariffs and engage in further negotiations, signaling a less aggressive trade policy.
Despite the positive outlook in India, the global landscape remains uncertain. China has imposed retaliatory tariffs on US goods, including energy products and machinery, and plans to probe Google. These moves have created caution in international markets, with US futures dipping as a result. Additionally, the Indian rupee reached an all-time low against the US dollar, signaling growing currency pressure amidst global trade tensions.
While the delay in US tariffs provides some relief to markets, the ongoing trade tensions with China and other global uncertainties will continue to shape investor sentiment in the short term.
“The delay in US tariffs on Canada and Mexico offers temporary relief, but escalating tensions with China remind us that trade wars are far from over.”
