Market Highlights ๐ก - 13 February 2025
๐บ๐ธ U.S. Markets Mixed on Higher-than-Expected Inflation Data;
๐จ๐ณ Asian Markets Rally on Optimism
๐ ๐บ๐ธ S&P 500: -0.27%
๐ ๐บ๐ธ Nasdaq Composite: +0.03%
๐ ๐ช๐บ Europe STOXX 600: +0.11%
๐ ๐ฏ๐ต Nikkei 225: +0.42%
๐ ๐ญ๐ฐ Hang Seng Index: +2.64%
๐ ๐จ๐ณ CSI 300: +0.95%
๐ ๐ธ๐ฌ Straits Times Index (STI): +0.36%
Market Highlights
๐บ๐ธ U.S. markets closed mixed on Wednesday, with the S&P 500 down 0.3% and the Nasdaq Composite edging up 0.03%. Market sentiment was dampened by higher-than-expected inflation data, though CVS Health $CVS Health(CVS)$
๐บ๐ธ U.S. inflation rose 3.3% year-over-year, exceeding the market forecast of 2.9%. Meanwhile, core inflation increased 0.4% month-over-month, higher than the expected 0.3%, indicating a resilient labor market.
๐จ๐ณ Asian markets broadly gained, with the Hang Seng Index and CSI 300 rising 2.6% and 1.0%, respectively, driven by enthusiasm around DeepSeek. UBS $UBS Group AG(UBS)$ and Morgan Stanley $Morgan Stanley(MS)$ noted that the market rebound has room to extend further.
Upcoming Events
Thursday:
๐บ๐ธ U.S.: PPI MoM, Core PPI MoM, Jobless Claims
๐ฌ๐ง U.K.: Quarterly GDP
๐ช๐บ EU: Industrial Production MoM
Friday:
๐ช๐บ EU: Preliminary Quarterly GDP
๐บ๐ธ U.S.: Retail Sales MoM, Core Retail Sales MoM, Industrial Production MoM
Things to Know Today
1. ๐บ๐ธ Donald Trump's trade advisors are finalizing a reciprocal tariff plan, which proposes imposing equal tariffs on countries that tax U.S. imports.
Trump Reciprocal Tariff
2. ๐บ๐ธ President Donald Trump has called for interest rate cuts to align with his upcoming tariff policies.
President Donald Trump
3. ๐ธ๐ฆ OPEC maintains a strong outlook for global oil demand growth in 2025, with support from aviation and road transportation.
OPEC
4. ๐ฎ๐ณ U.S. semiconductor equipment maker Lam Research $Lam Research(LRCX)$
Lam Research investment in India
5. ๐บ๐ธ Federal Reserve Chair Jerome Powell stated that despite some banks delaying their quantitative tightening (QT) plans, the Fed's balance sheet reduction will not end soon.
Jerome Powell
Key Takeaways
Markets face high uncertainty due to elevated valuations, earnings guidance concerns.
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Here are some news articles related to the market, inflation, earnings, GDP, oil, semiconductor, interest rate, and tariffs:
"Inflationโs Unwelcome Encore: Will the Fed Keep the Curtains Closed on Rate Cuts?" - This article discusses how knee-jerk selloffs to inflation surprises often fade within days or weeks. It emphasizes the importance of watching corporate earnings to determine the market's direction. Sectors that may be affected include Tech & Growth Stocks, Financials, and Consumer Discretionary. Read more
"Consumer Prices Rise 0.5% in January, Higher Than Expected as Annual Rate Rises to 3%" - This article highlights that inflation perked up more than anticipated in January, putting the annual inflation rate at 3%. The report suggests that this could provide further incentive for the Federal Reserve to hold the line on interest rates. Read more
"Global Market Quick Take: Asia โ February 13, 2025" - This article provides an overview of the market, mentioning that US January CPI rose 0.5% and the annual inflation rate reached 3%. It also notes that the Consumer Discretionary and Communications sectors gained, while other sectors fell. Read more
"The market really doesn't like the latest inflation report" - This article reports that US stocks sold off sharply after the latest inflation report, with all three benchmark indexes trading lower. Read more
Please note that these articles provide different viewpoints on the market and its reaction to inflation data. It is important to consider multiple perspectives and conduct further research before making any investment decisions.