Spreadex Market Update
Gold Nears $3,000 as Markets React to Trump's Tariff Moves
Gold surged towards $3,000 per ounce overnight, driven by concerns over US tariffs and central bank buying. Tesla shares dropped 3% to a two-month low as China's BYD and Leapmotor slashed EV prices, intensifying competition. Investors await Fed Chair Powell's testimony on inflation and tariffs, while markets adjust expectations for US rate cuts.
Equities
London’s FTSE 100 closed at a record high, rising 0.8%, with gains led by BP and mining stocks. BP climbed 7.4% after Elliott Management took a stake in the oil major, raising speculation of potential strategic changes. The energy sector as a whole gained 2.1% as oil prices edged higher following three consecutive weeks of declines. Mining stocks also saw strong demand, with precious metals miners up 3.6% as gold prices surged on safe-haven demand after Donald Trump’s new tariff announcements. Drax shares rose 3.8% after the company secured a deal with the UK government to halve its subsidies over 2027-2031.
In the US, the S&P 500 gained 0.67%, closing at 6,066.44, with AI and steel stocks leading the way. Nvidia climbed 2.9%, and Broadcom rose 4.5%, benefiting from continued interest in AI-related businesses. Amazon added 1.7%. Steelmakers surged after Trump announced a 25% tariff on all steel and aluminium imports. Cleveland-Cliffs jumped 18%, while Century Aluminum and Nucor gained 10% and 4%, respectively. US Steel shares also rose as Japan’s Nippon Steel suggested it might revise its bid for the company.
McDonald’s rose 4.8% after reporting stronger-than-expected global sales in the fourth quarter. Rockwell Automation surged 12.6% after delivering higher-than-expected earnings. Tesla fell 3% after reports emerged that Elon Musk and a group of investors were offering $97.4 billion to buy OpenAI’s controlling nonprofit.
The Nasdaq rose 0.98% to 19,714.27, while the Dow Jones gained 0.38% to 44,470.41.
Forex & Commodities
The US dollar held firm after Donald Trump confirmed new tariffs on steel and aluminium imports, with plans for further trade measures in the coming days. The dollar index remained steady at 108.35, while the pound dipped 0.01% to $1.2363, and the euro edged 0.02% lower to $1.0305. The Canadian dollar weakened slightly, trading at C$1.4333 to the US dollar, as traders assessed the impact of tariffs on steel and aluminium exports to the US.
Gold continued its sharp rise, reaching a record high of $2,942.70 per ounce before settling at $2,917.80, driven by safe-haven demand following the tariff announcement. US gold futures gained 0.3% to $2,944.10. Silver fell 0.5% to $31.87 per ounce, while platinum slipped 0.7% to $986.46.
Oil prices rose as concerns over supply disruptions offset worries about weaker demand from trade restrictions. Brent crude was up 0.32% at $76.11 per barrel, while US West Texas Intermediate crude gained 0.26% to $72.51. Russian oil production fell below its OPEC+ quota in January, and shipping disruptions from sanctions on Iran and Russia added to supply concerns.
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