US President Donald Trump signed an executive order for reciprocal tariffs, but delayed their implementation. The decision boosted stocks as investors focused on positive economic data.
A report on US producer prices showed a 3.5% increase in the past year, exceeding forecasts. However, some components of the price index fell, indicating potential softening in inflation.
Despite concerns over trade tensions, investors rallied behind Trump’s optimism and relief. The president’s plan for reciprocal tariffs will only take effect after studying tariff levels for each affected country.
The US is aiming to double bilateral trade with India to $500 billion by 2030. Trump stated that the US would charge the same tariff rates as India, while addressing trade deficits through oil and gas sales.
Asian markets traded mixed on Friday. Hong Kong’s Hang Seng index rose over 2.6%, while Japan’s Nikkei 225 fell 0.8%.
US producer prices showed a 0.4% increase in January, higher than expected. Some components of the price index decreased, such as physician care and domestic airfares.
Singapore’s economy expanded by 4.4% in 2024, its highest growth rate since 2021. Authorities expect slower GDP growth in 2025 to between 1% and 3%.
Analysts from Piper Sandler identified three major risks to the stock market, including a specific threat that has a high chance of causing stocks to pull back.
US President Trump announced plans for peace talks with Russia, following phone calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy. However, Ukraine may face challenges in participating in these talks, potentially leading to a high price for peace.
Source: https://www.cnbc.com/2025/02/14/cnbc-daily-open-silver-lining-in-markets-amid-hot-ppi-and-tariffs.html