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Markets Update: European stock futures increased by 1%, while Wall Street futures saw an uptick. Oil prices declined for the second consecutive day, and the euro continued its upward trend. The Nikkei index rose by 1.4% due to a weaker yen.
Global Markets Roundup: 13 Feb 2025
Equity Markets
U.S. and European stock futures surged on Thursday amid optimism over a potential peace agreement between Ukraine and Russia. This optimism counterbalanced the rise in Treasury yields, as concerns about inflation dampened expectations for policy easing this year. Trade tensions remained, with U.S. President Donald Trump indicating forthcoming reciprocal tariffs on nations imposing duties on U.S. imports.
EUROSTOXX 50 futures indicated a 1% increase, suggesting a strong opening for European markets. Meanwhile, Nasdaq futures rose 0.4% and S&P 500 futures gained 0.2%. Japan's Nikkei index increased by 1.4%, driven by a sharply weaker yen. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.2%, reaching its highest point since early December. Chinese blue-chip stocks edged up 0.2%, and Hong Kong's Hang Seng index extended its upward trend, rising 2.5% to a new four-month high.
Overnight data revealed the most significant increase in U.S. consumer prices in nearly 18 months for January. The core inflation index, excluding food and energy prices, rose 0.4%, surpassing forecasts. With the Federal Reserve signalling no urgency to reduce rates further, investors adjusted their expectations for additional easing to just 28 basis points, equating to one rate cut. Following the inflation data, Treasury yields rose, with 10-year yields climbing 10 basis points to a three-week high of 4.66%. They subsequently fell 3 basis points to 4.6092% on Thursday.
Currencies
In the foreign exchange market, the USD/JPY pair fell by 0.2% to 154.15 yen, following a significant 1.3% increase the previous night. The yen was notably impacted by the rise in U.S. yields. The euro EURUSD ascended to $1.044025, marking its highest level since February 5, and subsequently rose by 0.33% to $1.0417. The British pound (GBP/USD) reached a one-week peak of $1.25155, registering a 0.3% increase on the day. Economic data revealed an unexpected growth in the British economy during the final quarter of the previous year, providing some relief from an overall pessimistic economic outlook. Consequently, the U.S. dollar index DXY, which evaluates the dollar against a basket of currencies including the yen and euro, hovered near its lowest point since February 5. The index was last recorded at 107.69.
Commodities
In the commodities markets, oil prices continued their decline amid growing optimism for a peace agreement between Russia and Ukraine, which would alleviate the sanctions affecting supply chains. U.S. crude (CL1!) decreased by 1% to $70.64 per barrel, following a 2.7% drop overnight, while Brent (BRN1!) also fell by 1% to $74.43, after a 2.4% decline overnight. Meanwhile, gold (GOLD) increased by 0.5% to $2,918 per ounce, nearing its record high of $2,942.70 reached on Tuesday.
In the agricultural commodities market, Chicago corn futures experienced their second consecutive session of gains on Thursday, driven by tightening global supplies. Soybean prices also increased due to bargain-hunting following a decline caused by weak Chinese demand and a higher supply outlook. Conversely, wheat futures declined for the fifth consecutive session due to a lack of bullish factors, although traders remained vigilant regarding freeze risks to crops in the U.S. Plains and Black Sea regions. The most-active soybean contract on the CBOT rose by 0.27% to $10.31 per bushel, recovering from two days of losses. Corn futures gained 0.05% to $4.90-4/8 per bushel, marking a second straight session of increases. Wheat futures decreased by 0.44% to $5.72 per bushel, despite some support from short-covering activities. Traders are closely monitoring cold fronts affecting wheat crops in key regions.
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