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Markets Update: Euro retreats from five-month high; European stocks edge higher. U.S. CPI softer than expected, but tariff concerns dominate sentiment. Oil gains for a second day as supply tightens.
Global Markets Roundup: 26 Feb 2025
Global markets remained largely unchanged on Wednesday, as cooler-than-expected U.S. inflation data provided some relief, but investor sentiment was clouded by ongoing trade war uncertainty.
Inflation Data Provides Relief, But Tariff Fears Linger
The U.S. Consumer Price Index (CPI) rose 2.8% year-over-year in February, below the 2.9% forecast, according to Labor Department data. Monthly inflation slowed to 0.2%, following January’s 0.5% spike, easing concerns about persistent price pressures.
Markets struggled to digest another day of shifting U.S. trade policies. On Tuesday, Trump threatened to double tariffs on Canadian steel and aluminum to 50%, only to reverse the decision hours later, adding to investor uncertainty.
Wall Street Mixed, Global Stocks Flat
U.S. markets showed mixed performance:
Dow Jones Industrial Average fell 351.23 points (0.84%) to 41,082.25
S&P 500 dipped 7.98 points (0.16%) to 5,563.75
Nasdaq Composite rose 74.74 points (0.43%) to 17,510.84
The MSCI global stock index edged 0.01% lower to 826.56, while the pan-European STOXX 600 climbed 0.39%, though it remained below session highs.
Tariffs Take Effect, EU Plans Countermeasures
Markets initially rallied on Tuesday after Kyiv signaled willingness to accept a U.S.-brokered ceasefire, prompting Washington to restore military aid and intelligence-sharing with Ukraine.
However, sentiment soured on Wednesday as Trump’s tariffs on all U.S. steel and aluminum imports officially took effect. The European Commission responded by announcing counter-tariffs on $28.4 billion (€26 billion) worth of U.S. goods, set to begin next month.
Bonds and Currency Markets React
U.S. Treasury yields climbed as traders balanced lower inflation with heightened trade risks:
10-year yield rose 0.5 basis points to 4.293%
2-year yield increased 1.9 basis points to 3.96%
Amid concerns over a global economic slowdown, the yield spread between corporate bonds and Treasuries widened to its largest gap since September.
In foreign exchange, the euro EURUSD slipped 0.05% to $1.0913, while the U.S. dollar strengthened 0.36% against the yen USDJPY to 148.3. The Russian ruble, which hit a six-month high on Tuesday, pulled back 1.64% to 87.046 per dollar.
Oil Gains on Tightening Supply, Gold Nears Record High
Crude oil prices rose for a second straight day as U.S. government data revealed lower-than-expected stockpile builds, outweighing concerns over the trade war’s impact on demand:
U.S. crude climbed 2.13% to $67.66 per barrel
Brent crude advanced 1.83% to $70.83 per barrel
Gold edged higher as investors sought safety, with spot prices rising 0.22% to $2,922.34 per ounce. However, U.S. gold futures (GCc1) dipped 0.1% to $2,910.00 per ounce.
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