Markets Mixed Trade Tensions and Inflation Worries

Global markets showed mixed performances as trade tensions and inflation concerns weighed on investor sentiment. Key indices fluctuated, and commodities rose.

Global markets experienced mixed performances on Monday as investors reacted to escalating trade tensions and persistent inflation concerns. The latest comments from U.S. President Donald Trump regarding a potential 25% tariff on steel and aluminum imports fueled uncertainty, leading to volatility across major indices.

Asian stock markets showed mixed results as investors weighed economic data and geopolitical risks. Japan’s Nikkei 225 dipped slightly by 0.13% to close at 38,801.17, while the Topix index edged down 0.15% to 2,733.01 amid slowing loan growth, which dropped to 3% in January from December’s 3.1%.

Conversely, China’s markets rebounded, with the Shanghai Composite gaining 0.61% and the Hang Seng Index surging 1.86%. The positive momentum followed a rise in consumer inflation, which hit a five-month high due to increased Lunar New Year spending. The Consumer Price Index (CPI) increased 0.7% monthly and 0.5% annually, exceeding analysts’ expectations. However, the Producer Price Index (PPI) continued to decline, falling 2.3% annually.

South Korea’s Kospi remained flat in the region at 2,521.27, while the Kosdaq gained 0.91%. India’s markets continued their downward trend following an unexpected interest rate cut by the Reserve Bank of India, with the Nifty 50 falling 0.94% and the BSE Sensex dropping 0.83%. Meanwhile, Singapore’s Straits Times Index (STI) hit a record high of 3,910.12, rising 0.68%, led by gains in Singtel and major banks.

Markets Mixed Amid Trade Tensions and Inflation Worries

Australia’s S&P/ASX 200 declined 0.34% to 8,482.80 as investors digested weaker-than-expected retail sales data and ongoing concerns about economic growth.

Gold prices increased by 0.93% to $2,915.35 per ounce, while silver gained 0.38% to $32.75 per ounce. Oil markets also increased, with Brent crude rising 0.69% to $75.19 per barrel and WTI crude up 0.73% to $71.54 per barrel.

U.S. Treasury yields remained elevated in bond markets, with the 10-year yield at 4.487%. The UK 10-year yield stood at 4.476%, while Germany’s 10-year yield was 2.377%, reflecting persistent inflation worries and central bank policies.

Economic data releases provided a mixed picture of the labor market. In Canada, the unemployment rate increased from 6.60% to 6.80%, while employment change figures significantly outperformed expectations at 76.0K versus the projected 25.5K. In the U.S., non-farm employment change came in lower than expected at 143K, compared to the anticipated 169K, raising concerns about slowing job growth.

On Wall Street, markets closed in the red on Friday as inflation concerns and trade-related uncertainties weighed on sentiment. The Dow Jones Industrial Average dropped 444.23 points, or 0.99%, to close at 44,303.40. The S&P 500 fell 0.95% to 6,025.99, and the Nasdaq Composite slid 1.36% to 19,523.40. The losses pushed major indexes into negative territory for the week.

Investors closely monitor upcoming economic events, including a speech from European Central Bank (ECB) President Christine Lagarde at 02:00 PM GMT, which may provide further insight into monetary policy direction amid global inflation concerns. Market participants remain cautious as they navigate ongoing trade developments and central bank actions in response to persistent economic headwinds.

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