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Markets Update: Equity markets in the United States concluded the day on a downtrend, while European stocks experienced gains in anticipation of the upcoming German elections. The benchmark 10-year Treasury yields decreased. Crude oil prices declined by over 2%. Gold retreated from its record high.
Global Markets Roundup: 21 Feb 2025
Equity Markets
Equity markets in the United States closed lower, while European stocks saw gains ahead of the German elections. Oil prices declined by over 2% and gold retreated from its record high. Recent data indicated a significant drop in U.S. business activity, reflecting growing concerns over the Trump administration's policies.
The benchmark S&P 500, Dow Jones Industrial Average, and Nasdaq Composite Index ended lower, driven by losses in industrials, consumer discretionary, technology, and energy stocks. For the week, all three indexes recorded declines.
In Europe, stocks have been volatile due to the forthcoming German elections. The Stoxx 600 climbed 0.52%, reversing two days of declines, and ended the week up 0.26%.
The Dow Jones Industrial Average dropped 1.69% to 43,428.02, the S&P 500 fell 1.71% to 6,013.13, and the Nasdaq Composite slid 2.20% to 19,524.01. MSCI's gauge of global stocks fell 1.03% to 874.59, ending the week down 1.09%.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan gained 1.35% for the day and 1.47% for the week.
Federal Reserve officials indicated that cooling U.S. inflation may allow for further interest rate cuts. The yield on the benchmark U.S. 10-year note fell 7.2 basis points to 4.427%.
Currencies
In the foreign exchange market, the U.S. dollar strengthened against major currencies, partially recovering losses against the Japanese yen. The euro declined following business activity surveys that revealed a sharp contraction in France and only a slight improvement in Germany for early February.
The yen (USDJPY) appreciated by 0.31% to 149.14 per dollar. Meanwhile, against the Swiss franc (USDCHF), the dollar increased by 0.07% to 0.897. The dollar index DXY, which tracks the greenback against a basket of currencies including the yen and euro, rose by 0.25% to 106.62, while the euro EURUSD decreased by 0.38% to $1.046.
Commodities
In the commodities market, oil prices experienced a decline of over 2% due to supply disruptions in Russia and the diminishing Middle East risk premium, compounded by uncertainties surrounding a potential peace agreement in Ukraine. Brent futures decreased by 2.68%, closing at $74.43 per barrel, while U.S. West Texas Intermediate crude fell by 2.87%, settling at $70.40 per barrel. Simultaneously, gold prices decreased as investors sought to capitalize on profits from the previous session's record high. Spot gold declined by 0.16% to $2,934.10 per ounce, and U.S. gold futures closed 0.1% lower at $2,953.20 per ounce.
In the agricultural commodities market, sugar prices continued their month-long rally on Friday, reaching a 2-1/4 month high. This surge was supported by the report that India's sugar production decreased by 12% year-over-year to 19.7 million metric tons from October 1 through February 15, according to the India Sugar and Bio-Energy Manufacturers Association.
Conversely, the cocoa market saw a significant decline, with March ICE New York cocoa dropping by 11.33% and March ICE London cocoa decreasing by 7.64%. Cocoa prices hit a 2-1/2 month low in New York and a 3-month low in London. Meanwhile, corn futures were down 6-1/2 cents at $5.06-1/4 per bushel by 12:45 p.m. CST, despite earlier highs. This marked a 12% increase since the start of the year. Soybean futures fell by 5-1/2 cents to $10.57-1/2 per bushel, while wheat futures rose by 4 cents to $6.04-1/4 per bushel.
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