3 March 2025 – Asian equity markets jumped today in response to strong Chinese PMI data. Stainless steel scrap prices and nickel are rising. And once again, the European child needs to grow up!
Asian stock markets jump upwards
After the Asian stock markets initially suffered a setback on Monday, most of the major markets were able to recoup their losses over the course of the trading day, while others even closed significantly higher. The Jakarta Stock Exchange Composite Index (+4.1%), Nikkei 225 (+1.8%) and TOPIX (+1.77%) in particular jumped significantly.
The turnaround in equities came after the official Chinese Caixin Production Manager Index (PMI) for February 2025 climbed back into the expansion zone. The upturn in February was led by a strong recovery in the new orders index, which rose from 49.2 to 51.1. The production index also recovered from 49.8 to 52.5, marking the highest level in 10 months for both sub-indices.
Stainless steel scrap prices and nickel on the rise
Scrap prices for stainless steel in China rose significantly today, Monday. Prices for nickel grades 201, 316L and 304 in particular rose by up to 1.7%.
Nickel contracts on the SHFE were stable today. Prices on the LME have improved by around 1.4% so far.
Comment: The European child must finally grow up
Enough is enough once again. And it is high time for a political commentary. The scandal between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy was and still is hard to miss in the media.
But while the European Union once again seem to be lapsing into blind actionism or shock paralysis and spreading the tale of the demise of Western values, the political storm from Washington is distracting from an issue that is at least as pressing.
No European solutions in sight in the trade dispute?
Only if an economy is doing well, growing and prospering, will there be enough money to be able to afford solutions to its problems. With the threat of trade barriers, such as the announced punitive tariffs on an unknown number of products from Europe and a strong dependency on exports from the EU economy to the United States, taxpayers’ money is becoming scarcer rather than being able to plan for other important projects in Brussels or Berlin.
Canada and Mexico already on the way to solutions
Supposed side notes, such as the statement by US Commerce Secretary Howard Lutnick yesterday (Sunday): ‘There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate,’ are completely drowned out by supposed scare stories about a diplomatic dispute.
Crisis summit in trade dispute not in sight
It is astonishing how quickly the European states can advance a crisis summit on defence by three days. A crisis summit to avoid US tariffs or serious talks with the US administration are being sought in vain in the media – the European Union seems to be making more threatening gestures than finding real solutions.
EU bureaucrats rebuffed in Washington
The EU has sent its trade commissioner to Washington relatively unsuccessfully. Von der Leyen’s confidant Björn Seibert was also unable to announce an agreement the days before. Why Ursula von der Leyen, as the EU’s highest representative, has not yet made an appearance in Washington remains highly questionable. Is the European Union not interested in reaching an agreement?
As the largest US trading partner in Europe, Germany must finally take action
It would be more than desirable for the future German Chancellor Friedrich Merz, CDU, to get on a plane as quickly as possible and make his way to Washington. Whether in the German ‘Airforce One’ or not is simply irrelevant. In any case, Mr Merz should be personally blamed if he hesitates to the detriment of Europe and Germany instead of negotiating an urgently needed deal in Washington.
If two new special funds in the German budget of up to 900 billion euros for infrastructure and defence are suddenly being discussed and want to be chased through the Bundestag before the change of government, Mr Merz should probably also be able to make representations in Washington.
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