Friday's Markets Update (February 28, 2025)

01 Mar 2025 by rate3

On Friday, major indexes rebounded on technical buying as the core PCE index eased, but consumer spending dropped for the first time in two years. Meanwhile, the trade deficit ballooned to new records due to increased purchases of industrial supplies ahead of tariffs.

World's Markets:

EU stocks are slightly down, with tech declining while manufacturers gained a bit on good reports and a decrease in inflationary expectations.
The Brazilian market closed in negative territory ahead of the Carnival holiday's slowdown, and government bonds traded at a 10-year high amid budgetary concerns.
Indian stocks dropped, led by tech and FMCG, as foreign investors exited, expecting a trade war despite the economy accelerating and becoming the fastest growing in the G20, bolstered by increasing consumption and government expenditure.
Chinese equities declined as tariffs continued to weigh on the market while the AI rally took a pause.
Commodities and Currencies:

The dollar strengthened while gold ticked down as the number of expected Fed rate cuts reduced.
Crypto:

BTC rebounded slightly after hitting 80K, but the overall crypto market still remained in the red.
The State Of Markets: Mostly down, investors continued to risk-off, faced with the looming trade war, rising inflation, and slowing consumer spending.

On Week 9, investors will watch the labor report, trade tariffs, ISM PMI, factory orders, and Fed speeches. Euro Area highlights include ECB rates, inflation, and unemployment. Key data on rates, inflation, GDP, and trade will emerge globally.