ASIA/PACIFIC
Asian markets closed mixed on Wednesday as investors assessed the escalating trade tensions between the U.S. and its key trading partners. China’s Shanghai Composite Index gained 0.5%, while Hong Kong’s Hang Seng Index rallied 2.8% after Beijing unveiled an annual GDP growth target of around 5%. Authorities also announced measures to boost domestic consumption and safeguard the economy against “changes unseen in a century.” Japan’s Nikkei 225 Index edged up 0.2% as Bank of Japan Deputy Governor Shinichi Uchida signaled the likelihood of further rate hikes, citing inflation and wage growth concerns. In Australia, the S&P/ASX 200 fell 0.70%, despite data showing the economy expanded 1.3% year-on-year in Q4, beating Reuters’ forecast of 1.2%.
EUROPE
European stocks closed higher, rebounding from trade tensions amid hints from U.S. officials that there may be partial relief from the planned 25% tariffs on Canadian and Mexican imports. The Stoxx 600 Index climbed 1%, with Germany’s DAX soaring over 3% after Berlin announced a €500 billion infrastructure fund to stimulate economic growth. Investors also reacted to fresh economic data, including:
Business sector activity reports from Germany, the UK, and the Eurozone. Italy’s GDP figures. Eurozone producer inflation.
AMERICAS
The U.S. stock market’s performance reflected a rebound driven by optimism surrounding potential tariff relief. U.S. Commerce Secretary Howard Lutnick indicated that the government might ease the 25% tariffs for products adhering to the 2020 U.S.-Mexico-Canada Agreement’s rules of origin, primarily benefiting the automotive industry. The S&P 500 increased by 1.1%, the Dow Jones Industrial Average also rose by 1.1%. The Nasdaq Composite advanced by 1.5%. Latin American markets soared with Mexico’s peso regaining more of its tariff-driven losses.
AFRICA
Egypt’s EGX 30 Index rose 0.4%, supported by a 1.6% jump in Commercial International Bank. The country’s foreign reserves climbed to $47.393 billion in February, up from $47.265 billion in January, according to the Central Bank of Egypt. The African Development Bank (AfDB) announced a $230 million trade finance package for Access Bank Plc to enhance forex liquidity and support SMEs in Nigeria.
MIDDLE EAST
Most Gulf stock markets closed lower, pressured by oil sector declines. In Saudi Arabia, the Tadawul index eased 0.3%, weighed down by a 1.3% drop in Saudi Aramco. Reports surfaced about the oil giant’s potential bid for BP’s Castrol lubricants business. Dubai’s index slid 0.8%, led by a 3.7% decline in Emirates NBD. Abu Dhabi’s index dipped 0.4%. Bucking the trend, Qatar’s index gained 0.2%, fueled by a 2.1% rise in Qatar Gas Transport. On the fixed income front, Moody’s projected global sukuk issuance to decline to $210-$220 billion in 2025, following record levels in 2024, as sovereign refinancing needs drop across the GCC, particularly in Saudi Arabia.
COMMODITIES
GOLD
Spot gold edged 0.15% lower to $2,913.15 per ounce by 13:25 GMT, while U.S. gold futures inched up 0.1% to $2,924.30, as uncertainty over U.S. tariffs fueled investor caution.
OIL
Brent crude fell $1.73 (-2.44%) to $69.31 per barrel. WTI crude dropped $2.07 (-3.03%) to $66.19 per barrel, as markets reacted to OPEC+ plans to proceed with production increases in April.
