
Markets Update: The STOXX 600 has increased by 0.4%, reaching a new record high. The Euro STOXX 50 is on track for its best month in two years. Both the FTSE and DAX have touched record levels. Meanwhile, Wall Street futures are trending higher.
Global Markets Roundup: 31 January 2025
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Equity Markets
The S&P 500 SPX and the Nasdaq IXIC were set for weekly losses as tech shares suffered a rout after Chinese startup DeepSeek unveiled a breakthrough in low-cost artificial-intelligence models, triggering a bloodbath in AI-linked stocks. Japan's Nikkei index registered a modest gain on Friday, driven by advancements in technology stocks aligning with Wall Street's performance. However, a stronger yen and concerns over U.S. tariffs tempered market sentiment. The Nikkei NI225 closed up 0.15% at 39,572.49, marking its third consecutive session of gains, though it experienced a 1% decline over the week. The broader Topix TOPIX increased by 0.24% to 2,788.66.
European markets, including the STOXX 600 SXXP, DAX DAX, and FTSE CURRENCYCOM:UK100, achieved new highs this week, contrasting with the Nasdaq 100 NDX, which saw a 3% drop following the release of a cost-effective AI platform, DeepSeek. For the week, the STOXX 600 SXXP rose by over 2%, while the S&P 500 SPX saw a 0.5% decline. In the U.S., Dow E-minis YM1! gained 150 points (0.33%), S&P 500 E-minis ES1! increased by 28 points (0.46%), and Nasdaq 100 E-minis NQ1! advanced by 173.25 points (0.8%). Despite this, the S&P 500 SPX and Nasdaq IXIC are poised for weekly losses, primarily due to the impact on technology shares from the introduction of DeepSeek, significantly affecting AI-related stocks.
Â
Currencies
The euro EURUSD declined to session lows following data indicating that German regional inflation decelerated more than anticipated in December, last trading down 0.24% at $1.0367. The Canadian dollar USDCAD near a five-year low at C$1.4477, poised for a weekly loss of almost 1%, while the Mexican peso USDMXN recovered from its previous session's steep drop, standing at 20.6643 per dollar. However, it remained set for its worst weekly performance since October with a 1.85% decline. The U.S. dollar index DXY rose 0.2% to 108.33 against a basket of currencies, on course for a slight monthly loss of 0.3%.
The British pound GBPUSD was last down 0.1% at $1.2403, headed for a 0.7% monthly drop. In Japan, the yen USDJPY weakened, last 0.34% lower at 154.84, following comments from BOJ Governor Kazuo Ueda, affirming the necessity of maintaining a loose monetary policy to ensure underlying inflation gradually approaches the 2% target. Meanwhile, the Australian dollar AUDUSD rose 0.2% to $0.622 but was set for a weekly decline of 1.4%, its steepest in more than a month. The New Zealand dollar NZDUSD increased 0.26% to $0.565, yet it was also on track to lose 1.3% for the week.
Commodities
In commodities, Brent crude futures for March, expiring on Friday, decreased by 17 cents to $76.70 per barrel. U.S. West Texas Intermediate crude slipped 11 cents to $72.62. Gold prices surged to a new record high on Thursday following President Trump's announcement of a 25% tariff on imports from Canada and Mexico, excluding oil. The tariffs will take effect on Saturday, February 1. Gold reached an unprecedented $2,800 per ounce, up 1.5% from Thursday's session low of $2,757. Early Friday prices stabilized around $2,790, surpassing the previous record of $2,790 set in late October.
In soft commodities, the most active soybean contract on the Chicago Board of Trade (CBOT) declined by 0.6% to $10.37-3/4 per bushel, while CBOT corn fell by 1.8% to $4.81-1/2 per bushel. Corn retreated from a 15-month peak reached on Wednesday, and soybeans moved away from a six-month high hit last week. CBOT wheat decreased by 1.9% to $5.55-3/4 per bushel after achieving a two-month high on Thursday.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team