Morning wrap (13.03.2025)

U.S. stock indices recovered part of their recent losses yesterday after a lower-than-expected CPI inflation reading for February. The Nasdaq led the gains (+1.2%), followed by the S&P 500 (+0.5%) and the Russell 2000 (+0.14%), while the Dow Jones was the only index to close in the red, down 0.2%.

However, U.S. index futures indicate losses at the open due to ongoing concerns about weaker economic growth, with Bloomberg expecting higher PPI data to offset the positive CPI impact.

Asian markets are experiencing losses, with the HSCEI down 1.1%, flattening its rally since Donald Trump's inauguration in January, while the Shanghai SE Composite (-0.66%) and South Korea’s Kospi (-0.43%) are also declining. Japan's Nikkei 225 shows modest optimism, up 0.13%.

Forex market volatility remains relatively limited amid uncertainty over the next stages of the U.S. trade war with its partners. The U.S. dollar index (USDIDX) is trading flat, paring losses after a rise in U.S. bond yields. The strongest G10 currency is the Japanese yen (USDJPY: -0.4%), gaining after comments from Bank of Japan Governor Kazuo Ueda, who expects further wage and consumer spending improvements. The Canadian dollar is giving up some gains against the USD from recent retaliatory tariffs on the U.S. (USDCAD: +0.19%), while the Australian dollar is the biggest loser so far due to its exposure to U.S. steel and aluminum tariffs (AUDUSD: -0.4%). The EURUSD is down 0.06%.

Brent and WTI crude oil are correcting after their recent rebound (-0.25% and -0.33%, respectively), while NATGAS contracts are up 1.6%. Gold extends its gains, rising nearly 0.1% to $2,937 per ounce, while silver is giving up some of its recent bullish gains, down 0.6% to $33.05 per ounce.

Cryptocurrencies are slowing down after two days of gains, with corrections in Ethereum (-2.45%), Solana (-2.4%), Dogecoin (-2.8%), Chainlink (-2.8%), and Bitcoin (-0.7% to $83,200).

Key macroeconomic data releases today include Eurozone industrial production and U.S. producer price index (PPI) inflation.