📆 Tuesday, February 11
► European markets were muted as traders digested Trump’s new steel and aluminum tariffs and braced for Federal Reserve Chair Jerome Powell’s congressional testimony. The Stoxx 600 slipped 0.1%, pulling back from its all-time high, as Germany’s DAX and France’s CAC 40 also remained relatively flat. The UK’s FTSE 100 held steady despite the British pound weakening after BOE’s Catherine Mann warned that weak demand was curbing inflation risks. The European Union vowed to retaliate against any US tariffs, raising fears of an escalating trade conflict. Despite posting earnings below forecast, BP briefly surged after a $1.75 billion buyback plan but is now trading flat. On the other hand, luxury giant Kering rose (+2.5%) after posting better-than-feared results.
► US stock futures dipped, with S&P 500 (-0.35%) and Nasdaq (-0.55%) retreating slightly ahead of Powell’s testimony and the US Consumer Price Index (CPI) report (due Wednesday) . Investors remain focused on Trump’s latest trade moves, including his plan to impose reciprocal tariffs on countries taxing US imports. Meanwhile, Treasury yields ticked higher, with the 10-year yield rising to 4.54% (+4 basis points), reflecting expectations that rate cuts may not come until mid-year.
► Asian markets mostly declined as Trump’s global tariffs rattled investors. China’s Shanghai Composite fell 0.12%, with the offshore CNY weakening to 7.31/USD, pressured by tariff concerns and a stronger USD. Hong Kong’s Hang Seng (-1.06%) fell after a three-day winning streak, as Chinese tech stocks cooled off following a 17% rally this year. Australia’s ASX 200 (+0.01%) managed a tiny gain, supported by commodity prices and new tax incentives for green industries. Japan’s Nikkei was closed for a holiday.
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