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Markets Update: The S&P 500 achieved a new record high, while European stocks also reached unprecedented levels, driven by a surge in defence sector stocks. Anticipation of increased fiscal expenditure in the Eurozone contributed to rising borrowing costs. Commodities saw gains, with gold appreciating and Brent crude closing higher. Market participants are attentively observing the upcoming U.S.-Russia discussions.
Global Markets Roundup: 18 Feb 2025
Equity Markets
Global equity markets experienced an uptick on Tuesday, with the S&P 500 and European stocks closing at new peaks as investors processed robust U.S. earnings, trade tariffs, and a significant increase in European defence expenditures. The S&P 500 marginally surpassed its previous record high by the end of the trading session. Wall Street's major indexes fluctuated throughout the day but achieved gains in the final minutes of trading.
European markets concluded at a historic high, bolstered by banking and defence sectors. The pan-European STOXX 600 index reached an unprecedented level of 557.96.
On Wall Street, all three major indexes rose after recovering from earlier losses. Gains were led by sectors such as industrials, consumer discretionary, energy, utilities, consumer staples, and financials, while the technology sector lagged.
The Dow Jones Industrial Average increased by 0.02% to 44,556.34, the S&P 500 rose by 0.24% to 6,129.58, and the Nasdaq Composite gained 0.07% to close at 20,041.26.
China’s stock market also rallied, encouraged by President Xi Jinping’s meeting with domestic business leaders, which enhanced risk-taking sentiment. European leaders committed to reinforcing support for Ukraine should the upcoming U.S.-Russia discussions result in a hasty peace agreement that jeopardizes European security.
European stock indices, which are heavily weighted towards industrial groups, energy producers, and banks, saw their largest weekly investment inflow since January 2023, according to Bank of America. Key U.S. inflation metrics continue to exceed the Federal Reserve’s target by half a percentage point or more, prompting some officials to consider delaying rate cuts. The yield on the benchmark U.S. 10-year note rose by 7.8 basis points to 4.554%.
Currencies
In the foreign exchange market, The U.S. dollar appreciated against major currencies, driven by safe-haven demand amid concerns over tariffs and ongoing peace negotiations concerning the Russia-Ukraine conflict. The dollar increased by 0.35% to 152.03 against the Japanese yen (USD/JPY).
Against the Swiss franc (USD/CHF), the dollar gained 0.28% to reach 0.903. The dollar index DXY, which measures the greenback against a basket of currencies including the yen and the euro, advanced 0.28% to 107.02, with the euro EURUSD declining by 0.31% to $1.0449. The Australian dollar (AUD/USD) decreased by 0.08% to $0.63515, following the central bank's cautious implementation of its first rate cut since 2020.
Commodities
In the commodities market, Brent crude oil increased by 0.82% to $75.84 per barrel, while WTI moved 1.6% higher at $71.85 a barrel, as market participants awaited the outcome of the U.S.-Russia discussions in Riyadh and speculated on potential supply expansions if the U.S. decided to lift sanctions on Russian oil. Spot gold advanced by 1.23% to $2,933.37 per ounce, while U.S. gold futures rose by 1.7% to settle at $2,949.
In the agricultural commodities market, March NY world sugar #11 (SBH25) closed on Tuesday up by +0.10 (+0.49%), while May London ICE white sugar #5 (SWK25) dropped by -5.40 (-0.99%).
NY sugar prices reached a new 2-month high, driven by a -12% year-on-year decline in India's sugar production to 19.7 MMT from October 1 to February 15, according to the India Sugar and Bio-Energy Manufacturers Association. March ICE NY cocoa (CCH25) closed up by +142 (+1.40%), whereas March ICE London cocoa #7 (CAH25) ended down by -23 (-0.29%).
NY cocoa prices rose amid ongoing concerns regarding the West African cocoa crop, with Ivory Coast farmers reporting poor mid-crop harvest prospects due to an extended dry season. March arabica coffee (KCH25) fell by -0.75 (-0.18%), while March ICE robusta coffee (RMH25) increased by +40 (+0.70%).
Arabica coffee prices continued their decline following last Friday's significant -4.36% sell-off, attributed to long liquidation pressure from last Thursday's all-time nearest-futures high. CBOT March corn futures (CH25) closed 5-3/4 cents higher at $5.02 per bushel, reaching the highest price for the most-active contract since October 2023.
CBOT March wheat (WH25) ended up 4-3/4 cents at $6.04-3/4 per bushel, while March soybeans (SH25) rose 2-1/2 cents to $10.38-1/2 per bushel. Corn supplies are anticipated to tighten in the upcoming months, though soybeans are expected to remain abundant.
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