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Markets Update: European indices reached unprecedented highs. Oil prices increased following reports of OPEC+ postponing supply expansion. Market participants remain cautious regarding Russia-Ukraine negotiations and potential tariff developments.
Global Markets Roundup: 17 Feb 2025
Equity Markets
European shares achieved record levels on Monday, spurred by defence stocks, following calls for an emergency summit on the Ukraine conflict amid heightened demands from the U.S. for increased military spending. The pan-European STOXX 600 index rose by 0.4%, while a defence and aerospace stock gauge surged nearly 4% to lifetime highs. This sector has more than doubled in value since Russia's invasion of Ukraine three years ago.
On Monday, French President Emmanuel Macron hosted an emergency summit on Ukraine following U.S. suggestions that Europe would be excluded from talks in Saudi Arabia aimed at resolving the conflict. Britain expressed its readiness to deploy peacekeeping troops to support any agreement, while Russian and U.S. officials prepared for separate talks on Tuesday in Saudi Arabia. Ukrainian President Volodymyr Zelenskiy stated that Ukraine would not recognize any decisions made in discussions that exclude them.
The potential for reciprocal U.S. tariffs, postponed until April, remains a significant concern, particularly those based on value-added taxes in other countries. U.S. markets were closed on Monday for Presidents Day, resulting in lighter trading volumes, though S&P 500 futures and Nasdaq futures rose by 0.2%. The S&P 500 ended Friday up by 1.5% for the week, while the Nasdaq gained 2.6%.
Currencies
In the foreign exchange market, the euro experienced a minor decline to approximately $1.05 EURUSD, while the dollar weakened by nearly 0.6% to 151.46 yen USDJPY. The pound remained stable at around $1.2593 GBPUSD, just below its two-month peak, as market participants anticipated upcoming employment and inflation data. Central banks in Australia and New Zealand are anticipated to reduce interest rates during policy meetings this week.
Commodities
In the commodities market, gold prices declined from Friday's record highs of $2,899 per ounce, following a seven-week rally. Spot silver rose by 0.8% to $32.40 an ounce after reaching its highest level since October 31 on Friday. Platinum fell by 0.1% to $979.07, and palladium increased by 1.4% to $974.99. The OPEC+ group is considering delaying the planned monthly supply increases set to begin in April, despite President Trump's calls for price reductions, as reported by Bloomberg News. Brent crude increased by 9 cents to $74.82 per barrel, while U.S. crude rose by 13 cents to $70.87 per barrel.
In the agricultural commodities sector, as of February 17, 2025, the London market faces a complex environment shaped by supply constraints, shifting demand, and policy changes.
Cocoa prices have reached unprecedented heights, exceeding $12,000 per ton, driven by consecutive poor harvests in West Africa due to climate change and crop diseases. This has resulted in a significant decline in stockpiles at the Intercontinental Exchange's London market, from over 100,000 tonnes to roughly 21,000 tonnes. Consequently, chocolate manufacturers are exploring alternatives, such as compound chocolate, which utilizes substitute fats instead of cocoa butter. As a result, retail chocolate prices have increased by up to 20% compared to the previous year.
For the week ending February 11, 2025, speculative investors became net sellers of Chicago corn and soybeans for the first time in nearly two months. Money managers reduced their net long positions in CBOT corn futures and options to 332,389 contracts from 364,217 the previous week. Similarly, net long positions in CBOT soybean futures and options dropped to 28,475 contracts from 57,029. This cautious stance is influenced by global supply concerns and market volatility.
The sugar market is experiencing a decline in prices due to weak demand following a sharp increase. Prices have decreased by Rs 100-150 per quintal from recent highs, with the London White Sugar #5 front month contract trading at $544.70 per ton as of February 17, 2025. India is struggling to meet its sugar export quota of one million metric tons this season, with exports between 400,000 to 500,000 tons so far, primarily to neighbouring countries and Eastern Africa. Factors such as mill closures in northern India and adverse harvest conditions contribute to this shortfall.
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