- US indices spend the session in the green. The Nasdaq (+0.77%), S&P500 (+0.42%), DJIA (+0.36%) and Russell 2000 (+0.25%) are gaining.
- US producer inflation confirms the Fed's announcement of a price spike in late 2024 and early 2025. PPI unexpectedly rose to 3.5% y/y (forecast: 3.2%, previous: 3.3%) and 0.4% m/m (forecast: 0.3%, previous: 0.5%).
- US President Donald Trump announced that the United States will impose further tariffs. Countries applying the value-added tax system (VAT) will be subject to the tariffs. The sectors to be affected are expected to be primarily automotive, pharmaceuticals, metallurgy and semiconductors.
- The European market had a euphoric session, fueled by expectations of an end to the war in Ukraine after yesterday's Putin-Trump talks. Germany's DAX (+2.09%) posted record highs, while France's CAC40 (+1.52%), Italy's FTSE MIB (+1%), Spain's IBX35 (+0.19%) and Switzerland's SMI (+1.85%) were also in the green. In contrast, the UK's FTSE 100 (-0.5%) posted a loss.
- CPI inflation in Switzerland fell in January as expected from 0.6% to 0.4%.
- Preliminary data from the UK showed better-than-forecast GDP growth (1.4% y/y vs. forecast: 1.1%) and improved industrial production (+0.5% m/m, forecast: +0.1%, previous: -0.4%). The better data did not inspire the stock market, but strengthened the pound (GBPUSD: +0.5%).
- In the FX market, the USD (Dollar Spot Index: -0.34%) lost most of its ground following CNBC's report that Donald Trump's key tariffs will be postponed by an additional month (to April). The strongest G10 currency today is the Swiss franc (CHFUSD: +0.98%), followed closely by the Japanese yen (USDJPY: -0.8%). The euro continues its recovery, strengthening against the USD by 0.28% (EURUSD: 1.0413).
- Gold held the psychological barrier of $2900 per ounce and today broke above $2915, thus gaining 0.5%.
- NATGAS is gaining nearly 2% today in the face of a larger-than-expected decline in US stocks of the commodity. What's worth adding, however, is that the earlier scale of the increases was larger, but it has now been largely capped.
- Despite the sizable increases we saw at the end of Thursday's session on stock markets, the cryptocurrency sector is lagging behind and seeing relatively large sell-offs.Bitcoin is currently losing 2% and Ethereum nearly 4.3%.
