Global Markets Steady as Tariffs, Inflation Concerns Linger

Equities and bonds exhibited limited fluctuations at the close of a week dominated by headlines on trade tariffs, Ukraine peace efforts, earnings reports, and persistent inflation data in the United States.

European Markets

European markets, as measured by the Stoxx 600 index, experienced a modest dip. Luxury stocks, however, shone brightly, with Hermès reaching a record high in Paris following strong holiday season sales.

US Markets

S&P 500 futures remained stable after Wall Street's near-record close on Thursday.

Asian Markets

Asian markets performed stronger. Hong Kong's Hang Seng index surged over 4%, its highest level in three years, fueled by optimism surrounding China's advancements in artificial intelligence.

Trade Tariff Concerns

Investors have been reassured by speculation that negotiations over U.S. President Donald Trump's proposed trade tariffs may mitigate their impact. The Bloomberg Dollar Spot Index has declined by approximately 2.5% since February's peak.

Dollar and Currencies

The U.S. dollar weakened on Friday. The yen and the British pound strengthened, with the latter reaching its highest level against the dollar this year.

Treasuries and Gold

U.S. Treasury yields remained stable after Thursday's rally. Gold traded near a record high, driven by haven demand and potentially testing $3,000 an ounce.

Commodities

Crude oil prices stabilized following the announcement of Trump's potential reciprocal tariffs on U.S. trading partners.

Key Upcoming Events

* Eurozone GDP, Friday
* U.S. retail sales, industrial production, business inventories, Friday
* Fed's Lorie Logan speaks, Friday

Market Highlights

* Stocks:
* Stoxx Europe 600: -0.1%
* S&P 500 futures: Unchanged
* MSCI Asia Pacific Index: +0.7%
* Currencies:
* Bloomberg Dollar Spot Index: -0.2%
* Euro: +0.2%
* Japanese yen: +0.1%
* Cryptocurrencies:
* Bitcoin: +0.5%
* Ether: +1.6%
* Bonds:
* 10-year Treasury yield: +1 basis point to 4.54%
* Commodities:
* Brent crude: +0.5% to $75.42 a barrel
* Spot gold: +0.2% to $2,935.10 an ounce