Global stock markets held near record highs on Friday, with European indexes poised for their eighth weekly gain, following US President Donald Trump’s announcement that reciprocal tariffs would not be immediately imposed.
The news offered a reprieve to markets, which had been concerned about the potential for a trade war. However, analysts remain cautious, saying that the delay does not necessarily mean that tariffs will not be imposed in the future.
“The delay in the immediate imposition of reciprocal tariffs is likely to provide some relief,” said Barclays analysts. “However, it is unclear whether this delay reflects a lower likelihood of eventual imposition.”
Trump’s decision has sparked mixed reactions from markets and experts. Some see an opportunity for negotiations, while others believe that Trump’s actions are a sign of his toughness on trade.
“The situation remains fluid,” said Michael Brown, senior research strategist at Pepperstone. “There is always the possibility that new developments will emerge, which could impact market sentiment.”
European stocks were mixed, with the pan-European STOXX 600 index up 0.1% on the day. Asian markets also saw gains, with Chinese tech stocks rallying, driven by a breakthrough from home-grown start-up DeepSeek.
The US producer prices report showed solid growth in January, bolstering expectations that interest rates will not be cut before the second half of the year. However, some components of the data were soft, adding to hopes that the personal consumption expenditures (PCE) reading may be cooler than expected.
Inflation concerns remain a focus for markets, with the yield on benchmark US 10-year notes steady at 4.5347%. The dollar index was down 0.2% on the day, while the euro hovered near its highest in more than two weeks.
Oil prices rose, poised to end three weeks of losses, buoyed by rising fuel demand.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-02-13