Tuesday's Markets Update (February 11, 2025)

12 Feb 2025 by rate3

On Tuesday, equities closed marginally higher as Powell remarked on the 'strong economy,' while small business owner optimism tumbled due to the uncertainty of Trump's policies. Steel and aluminum stocks were boosted by tariffs. Tesla's stock dropped following its earnings report. The dollar, oil, gold, and silver continued to rise amidst the trade war. BTC, ETH, and SOL still fluctuate due to traders' lack of decisiveness.

Details

The NFIB Small Business Optimism Index dropped to 102.8 in January from 105.1 in December 2024, missing forecasts of 104.6. Owners remain hopeful but face hiring challenges, inflation concerns, and reduced capital investment plans. 1Y trend: "Up" (Nfib)

Crypto

The Central African Republic's memecoin, CAR, hasplummeted nearly 97% from its peak within 24 hours. Launched on Sunday, it initially surged but quickly collapsed amid skepticism about its legitimacy. Despite the dramatic fall, the country's President continues to promote the token. (source)

World Markets

Mexico’s industrial output fell 2.7% YoY in December, marking the fifth straight decline. Construction, mining, and manufacturing dropped, while utilities grew slower. Monthly production fell 1.4%, missing forecasts. Annual 2024 output rose 0.2%. 1Y trend: "Down" (Inegi)

Currencies

The Indian rupee rose to 86.8/USD, supported by RBI intervention after hitting record lows near 88. Despite recovery, it remains Asia’s worst-performing currency due to foreign outflows and slow growth. Tariffs and RBI rate cuts add pressure. 1Y trend: "Up, Depreciating"
The offshore yuan weakened as the dollar strengthened following the imposition of new tariffs on steel and aluminum imports. This move further escalated trade tensions with China, which retaliated with tariffs on coal, LNG, and crude oil. 1Y trend: "Up, Depreciating"

Commodities

Silver stayed near $32/ounce, close to 3-month highs, driven by safe-haven demand after tariffs on steel and aluminum. Investors await inflation data and Powell's comments, while industrial demand and supply deficits support prices. 1Y trend: "Up"
Brent crude oil prices rose, driven by tighter Russian supply and rising geopolitical risks. New sanctions on Iran and the potential for renewed conflict in the Middle East supported prices. However, gains were limited by concerns over tariffs on steel and aluminum and broader economic uncertainty. 1Y trend: "Side"