Stock Market Is Going to Open in a Foul Mood

President Trump warned that his coming tariffs on Canada, Mexico, and China may cause some "pain," and it's showing up on world markets:

• In the US: Dow futures were down more than 600 points before Monday's opening bell, reports CNBC. The broader S&P 500 index and the tech-focused Nasdaq were down by greater percentages of 1.5% and 1.7%. Auto stocks, particularly GM and Ford, were especially hard hit because the penalties on Mexico and Canada will affect their supply chains.
• World: European stocks fell between 1% and 2%, and indexes in Japan, South Korea, and Taiwan fell between 2.5% and 3.5%, per the Wall Street Journal. Chinese markets were closed for the Lunar New Year. Oil prices surged more than 2%. Meanwhile, the US dollar strengthened, while the Canadian dollar and the Mexican peso tumbled, notes the Washington Post. The latter is a continuation of a trend of affected countries weakening their currencies to offset the impact of the tariffs, per Reuters.

• Fear gauge: The VIX volatility index is up 24% since Friday and is now sitting above 20.
• Crypto: Bitcoin slid more than 8% since Friday to below $94,000, and other cryptocurrency coins such as etherium lost more than 20% overnight before rebounding slightly.
• Trump talks Monday: The president says he will speak with leaders in Mexico and Canada on Monday, one day before the tariffs take effect, reports the Hill. "I don't expect anything very dramatic," he said. "We put tariffs on. They owe us a lot of money, and I'm sure they're going to pay."

(More tariffs stories.)