Wednesday,12 February 2025 08:10:30

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Wednesday,12 February 2025 at 08:05

UK and European markets maintained positive momentum as investors digested the latest raft of tariffs introduced by U.S. President Donald Trump. The European Union said on Tuesday that it plans to retaliate against the United States for new steel and aluminium tariffs: “Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures,”

Asia-Pacific markets traded mixed as investors digested U.S. President Donald Trump’s tariff impact on regional economies. U.S. Federal Reserve Chair Jerome Powell, meanwhile, re-emphasized on Tuesday the central bank’s focus on curbing inflation and signalled that policymakers were not in a rush to push interest rates lower.

Gold prices slipped after rising to an all-time high in the previous session, as Federal Reserve Chair Jerome Powell’s hawkish comment cemented views of slower rate cuts this year, while investors awaited a key U.S. inflation report.

Oil prices fell as an industry report showed an increase in U.S. crude stockpiles and tariff worries weighed on sentiment, paring back three days of gains driven by increasing Middle East tensions and intensifying sanctions.

All eyes are on today’s US inflation update. The US headline inflation is expected to steady near 2.9% year-on-year in January, core inflation may have eased from 3.2% to 3.1%.

"A set of softer-than-expected inflation numbers could help sooth inflation worries and encourage a deeper retreat in the US dollar and a further advance across the major peers. While a stronger-than-expected set of inflation figures could fuel worries, back a further rise in the US yields and the dollar and weigh on risk appetite."

Markets

AT THE OPEN

FTSE 100 8,784 +0.08%

FTSE 250 20,957 +0.18%

DAX 22,037 +0.58%

AT THE CLOSE

Dow Jones 44,593 +0.28%

S&P 500 6,068 +0.03%

NASDAQ 19,6433 (-0.36%)

Fixed Income

UK 10-YR YIELD 4.528

Exchange Rates

GBP/USD 1.246

GBP/EUR 1.200

Commodities

Gold $2,892 (-0.14%)

Brent $76.41 (-0.47%)

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.