ASIA/PACIFIC
Asian markets ended mixed in thin trading on Tuesday, with Japanese markets closed for a public holiday. The Australian market edged higher, despite concerns over U.S. President Donald Trump’s new 25% tariffs on all steel and aluminum imports. However, Trump promised to give Australia’s case “great consideration,” providing some relief to investors.
EUROPE
European markets maintained positive momentum as investors weighed the potential effects of U.S. tariffs on global trade. Bank of England (BoE) Governor Andrew Bailey warned that central banks may be underestimating changes in financial markets, advocating for more dynamic stress tests and a contingent liquidity facility to support non-bank financial institutions and safeguard market stability.
AMERICAS
Major U.S. stocks had a mixed performance Tuesday as investors reacted to Federal Reserve Chair Jerome Powell’s testimony before the Senate Banking Committee. Powell indicated the central bank is in no rush to change its current policy stance. Additionally, traders digested earnings reports and assessed economic developments following Trump’s approval of tariffs on steel and aluminum.
AFRICA
At the upcoming 38th African Union (AU) summit (February 17–18) in Addis Ababa, heads of state are expected to approve the launch of an “African Financing Stability Mechanism”. This initiative could save regional sovereigns $20 billion in interest costs over the next decade and help mitigate refinancing crises, according to IFR. In South Africa, the Johannesburg Stock Exchange (JSE) Voluntary Carbon Market saw its first trades of carbon credits eligible for the South African Carbon Tax. A total of 10,000 credits traded at $8.25 per credit, equivalent to 80% of the current R190 per ton carbon tax rate.
MIDDLE EAST
Most Gulf stock markets continued their gains, supported by strong corporate earnings despite concerns over potential U.S. tariffs. Speaking at the World Governments Summit in Dubai, DP World CEO Sultan Ahmed bin Sulayem stated that Trump’s trade policies aim to ensure “fair trade” rather than halt global trade. On the bond front, Gulf Cooperation Council (GCC) nations are expected to remain top issuers of emerging-market (EM) U.S. dollar debt in 2025 and 2026, according to Fitch Ratings.
COMMODITIES
GOLD
Spot gold fell 0.4% to $2,896.53 per ounce as investors took profits after the recent record high. U.S. gold futures also dropped 0.4% to $2,923.50 per ounce.
OIL
Brent crude futures were up 75 cents, or 0.99%, at $76.62 a barrel, while U.S. West Texas Intermediate crude rose 67 cents or 0.93% to $72.99 amid Russian and Iranian oil supply concerns and potential new sanctions.