Lots of activity in the global economic sector over night.In...

Lots of activity in the global economic sector over night.

In Europe, the markets were all in the red.

The FTSE fell 104 points (1.21%), the DAX fell 304 points (1.34%) and the CAC fell 105 points (1.31%).

Increased European fiscal spending (particularly in Germany) is off-setting potential US tariff related effects. Europe has a more diverse trading network than just being US orientated.

European industrial production data is due on Thursday.

US markets were well down in early trade (DOW over 700 points down). Strong comeback in later trade and the NASDAQ reversed a 200 point drop to end up just in the red.

The DOW fell 478 points (1.14%), the NBI fell 44 points (1.00%), the NASDAQ Composite fell 32 points (.18%) and the Russell small cap index managed a small rise of 4 points (.22%).

Markets are being spooked by the prospect of a "Trumpcession".

Trump announced a 50% tariff on Canadian Steel and Aluminium imports in retaliation for Ontario's 25% charge on exports of electricity to the US.

In addition, Trump said he would "substantially increase" duties on cars coming from Canada and that these tariffs "will essentially permanently shut down the automobile manufacturing business in Canada. These cars can be made in the USA".

DOGE is adversely affecting the US economy - less government travel and less server sales are in evidence.

7.74 mil job openings in January - up from 7.51 mil in December. Hirings were flat. This may indicate that businesses are putting off investment.

US CPI data out tomorrow.

US PPI initial jobless claims out on Thursday.

Canadian interest rate decision is out tomorrow.

US Treasury 10 year bond yield rose to 4.293%

Oil prices edged up - Brent crude is at US$69.82 per barrel.

Precious metal prices rose - gold is at 2,918 per oz.

BITCOIN staged a small recovery and is at US$83,105.