This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
People are forward-thinking beings. It increases our chances of success and survival by enabling us to plan for the future, but it can also hold us back by causing us to become paralyzed by worry and inaction.
In Thursday’s markets, the two factors were in a delicate tension.
The U.S. producer price index’s January monthly reading was warmer than expected. However, according to Citigroup projections, the price of some PPI components decreased, resulting in a soft personal consumption expenditure prices index report.
In the meantime, U.S. President Donald Trump refrained from immediately imposing duties on nations, even though he signed an executive order for reciprocal tariffs.
Stocks eventually rose as relief and optimism overcame anxieties and concerns. It can be the case that “tomorrow will be better” or “tomorrow we’ll deal with tomorrow’s problems.” Despite our best efforts to forecast and plan for the future, certain things will only become clear tomorrow.
What To Note Today
Reciprocal Tariff Signing
On Thursday, U.S. President Donald Trump issued a presidential memorandum outlining his strategy for enforcing “reciprocal tariffs” on other countries. Trump stated that the plan would see non-tariff policies of other nations, such as value-added taxes, as unfair trade practices that call for retaliatory tariffs. Only when the White House determines the proper tariff levels for each impacted nation will the reciprocal tariffs go into force.
India And The US Aim To Trade $500 Billion
At a joint news conference with Trump on Thursday, Indian Prime Minister Narendra Modi stated that Washington and New Delhi will endeavor to more than double bilateral trade to $500 billion by 2030. Regarding Trump’s reciprocal tariffs, which he signed just hours before he met with Modi, he said that selling petrol and oil might help close the trade deficit with India and that the United States would only impose the same tariff rates as India.
U.S. Markets Are Optimistic
On Thursday, U.S. equities increased due to a surge in tech stocks and relief that Trump’s reciprocal tariffs would not take effect immediately. The Nasdaq Composite increased 1.5%, the Dow Jones Industrial Average increased 0.77%, and the S&P 500 increased 1.04%. Friday saw uneven trading in Asia-Pacific markets. While Japan’s Nikkei 225 sank 0.8%, Hong Kong’s Hang Seng index surged more than 2.6%, maintaining its gains from the day before.
Soft Inside, But High Wholesale Costs
The Bureau of Labour Statistics said Thursday that the U.S. producer price index rose 3.5% for the year in January. Wholesale prices increased by 0.4% for the month, more than the 0.3% increase predicted by the Dow Jones. There are indications in the data that prices may be moderating, even if the figure was higher than anticipated. For example, the cost of physician care decreased by 0.5%, domestic airfares decreased by 0.3%, and the price of broking services decreased by 2.2%.
Singapore’s Economy Is Booming
According to figures released Friday by the Ministry of Trade and Industry in Singapore, the country’s economy grew by 4.4% in 2024, the greatest growth rate since 2021. Nonetheless, officials anticipate that GDP growth will decelerate to 1% to 3% in 2025. On February 18, the nation’s first budget under Prime Minister Lawrence Wong will be unveiled. Analysts anticipate business and household support.
Most Likely Market Threat
According to Piper Sandler, the stock market has three main dangers. After examining 27 S&P 500 corrections over the previous 60 years, the investment firm concluded that one hazard, in particular, has the most potential to trigger a stock market decline this time.
Bottom Line
Ukraine may have to pay a heavy price for peace, but negotiations to end the conflict with Russia are about to start.
U.S. President Donald Trump said on Wednesday that he had phone conversations with Presidents Volodymyr Zelenskyy of Ukraine and Vladimir Putin of Russia, who expressed a desire for peace. Trump claimed to have told American diplomats to start peace negotiations right away. Before Trump’s declaration, U.S. Secretary of Defence Pete Hegseth had scuttled Ukraine’s aspirations to reclaim lost territory during Russia’s 2014 annexation of Crimea and to join the military alliance NATO.
Ukraine is coming to terms with the harsh fact that the United States, its largest ally and supporter, may demand that Ukraine pay a hefty price for peace. Beyond Kyiv, prominent European officials have expressed fear that Ukraine’s allies may be excluded from the peace negotiations due to Trump’s unilateral action, seemingly shocking them.
