Top 5 Market Highlights: Global Market Trends Affecting Currencies, Commodities & Stocks

Market Highlights: Key Financial Trends Shaping Global Economies

The past week was packed with major market events, inflation updates, and economic trends shaping global markets. From stock market shifts to central bank decisions, here are the top 5 market highlights impacting global economies and trading strategies.

17/2/2025 – European Stocks Surge on Ukraine Peace Optimism, Yen Strengthens with Strong GDP, and Gold Rises as Dollar Weakens Amid Inflation Concerns

European stocks surged on optimism over Ukraine peace talks, while Russia showed interest in negotiations. Europe remains cautious of early ceasefires with Russia.

The Japanese Yen strengthened and surged following strong Q4 GDP data, which grew by 2.8%, driven by consumption and investment. Meanwhile, the U.S. dollar steadied near two-month lows as wage growth in the U.S. remains above Fed targets, complicating inflation control, while Argentina’s financial scandals hurt investor confidence.

Gold rose as the U.S. dollar weakened, and the Australian and New Zealand dollars neared two-month highs. Oil markets had mixed reactions after the resumption of Iraqi Kurdistan’s exports. 

18/2/2025 – Global Markets Grapple with Fed Rate Cut Speculation, Argentina’s Downgrade, and Geopolitical Tensions

Global markets are facing uncertainty due to potential US Federal Reserve rate cuts and inflation concerns, with Fed official Waller hinting at cuts in 2025 despite recent CPI data. This could affect bond yields, weaken the USD, and increase volatility in equity markets as interest rate and credit risks are reassessed.

Argentina’s S&P rating downgrade to ‘SD’ highlights regional debt challenges, putting pressure on the Argentine peso and raising concerns over capital inflows.

Geopolitical risks remain high as European leaders seek American support for Ukraine and warn against ceasefires without peace deals, potentially impacting defense equities and energy prices. Diplomatic efforts between Ukraine and France continue as both countries work to manage these risks.

19/2/2025 – Global Markets Swing Amid Fed Minutes, Tariff Threats, and Geopolitical Uncertainty; S&P Hits Record While STOXX 600 Faces Year’s Biggest Drop

Global markets fluctuated as investors digested Fed minutes, tariff threats, and political uncertainty. The S&P 500 reached a record high, while the STOXX 600 posted its biggest drop of the year due to tariff concerns

UK inflation surged to 3.0% in January, challenging the Bank of England’s outlook, while New Zealand’s central bank cut rates by 50 basis points to 3.75%. U.S. housing starts fell 9.8%, signaling a slowdown in the housing market. Geopolitical events, including Trump’s tariff threats and Ukraine peace talks, affected market sentiment.

Gold steadied on safe-haven demand, while the U.S. dollar and yen strengthened as risk appetite fell. Oil prices edged up on supply concerns amid geopolitical tensions. 

20/2/2025 – Global Markets Slide Amid Tariff Threats, Inflation Worries, and Geopolitical Tensions as Safe-Haven Demand Rises

Global markets reacted cautiously to Trump’s new tariff threats, with US stocks and commodities hit, while the yen surged on BOJ rate hike speculation. Global economic data showed slowing momentum, with New Zealand’s trade deficit and persistent inflation concerns. The Fed warned of stagflation risks.

Geopolitical tensions added uncertainty, with US-Ukraine friction and Israel’s anti-terror operations affecting defense stocks and oil prices, which rose on fuel stock draws and Russian disruption worries. Gold neared record highs on haven demand, while European markets stayed resilient due to strong corporate earnings.

Central banks focused on inflation, with the Fed addressing stagflation risks, while New Zealand maintained stable exports and France prepared for Ukraine diplomacy. 

21/2/2025 – S&P 500 Drops on Tariff Concerns, Global Markets Volatile as US-Russia Tensions and Weak Economic Data Weigh on Sentiment

Stocks are mixed—S&P 500 fell on tariff concerns, Canadian equities saw sharp declines, and emerging markets weakened on US-Mexico data. European markets remain volatile, while bond yields drop amid shifting rate-cut expectations.  

US business activity is stalling, inflation expectations rose, and Canada’s retail sales surged 2.5%. France’s PMIs fell to 44.5, highlighting diverging economic trends.  

US-Russia tensions rise over Ukraine, Trump hints at Middle East deals, and China warns of ongoing tariff disputes, increasing market uncertainty.  

The dollar edged up, the yen weakened, gold remains on an eight-week rally, and oil fell 2% despite supply concerns.  

What to be on the lookout for next week?

Consumer Confidence (U.S.) 

On 25/2/2025, the U.S’s Consumer Confidence index will be released by the Conference Board, which gauges US consumer sentiment on business conditions and future developments. It covers attitudes on buying, inflation, the labor market, stock prices, and interest rates. High readings are bullish for the US Dollar (USD), low readings bearish.

This is a leading indicator of economic growth and consumer spending, influencing monetary policy and market movements. 

Consumer confidence affects spending behavior, with higher confidence boosting economic growth. Inflation and interest rate policies will shape sentiment and market reactions.The report is key for market expectations on consumer spending amid recent monetary policy and inflation trends.

Unexpected shifts in sentiment from inflation or employment data could cause market volatility if actual readings differ sharply from forecasts.

Consumer Confidence (EU) 

On 27/2/2025, the EU will release The Consumer Confidence index, which measures consumer confidence in economic activity. A high reading is bullish for the EUR, while a low reading is bearish.

This is a key indicator of economic health, influencing consumer spending and growth, and a signal for inflation trends and central bank policy.

The index reflects consumer optimism, affecting spending and investment. Stability is expected, but negative sentiment could signal slower growth.

Markets expect stable consumer confidence, though uncertainties may dampen spending and investment. Significant deviations from forecasts or external economic shocks could cause market volatility and impact growth.

GDP Annualized (U.S.) 

Next week on 27/2/2025, the US will release the real GDP Annualized, which measures the value of goods and services produced in the US. A high reading is bullish for the USD, while a low reading is bearish.

The BEA releases GDP growth estimates, with the first being the most impactful. Positive surprises boost the USD, while disappointing data weakens it. Later revisions typically have less market impact.

The upcoming GDP reading is crucial, reflecting economic growth and guiding monetary policy. The stable forecast of 2.3 suggests economic resilience which indicates stable conditions and cautious investor sentiment.

Unexpected inflation trends or Federal Reserve policy changes could disrupt market stability and affect investor confidence.

Q&A Section: 

Q1: Why did gold prices surge while the U.S. dollar weakened this week? 

Gold prices rose as investors sought safe-haven assets amid geopolitical tensions, including US-Ukraine friction and ongoing tariff disputes. The U.S. dollar weakened due to concerns over inflation, Fed rate cut speculation, and stagflation risks, making gold more attractive as a hedge against economic uncertainty.

Q2: How did Japan’s strong GDP growth impact its currency and markets? 

Japan’s Q4 GDP grew by 2.8%, driven by strong consumption and investment, which boosted confidence in the yen. As a result, the yen surged on expectations that the Bank of Japan may adjust its monetary policy. This, in turn, affected global currency markets, with the U.S. dollar steadying near two-month lows and risk sentiment shifting.