ASIA/PACIFIC
Asian stocks ended mixed on Friday as tariff concerns offset investor optimism over China’s artificial intelligence potential. Hong Kong’s Hang Seng Index surged 4.0%, fueled by Alibaba’s significant profit increase in Q4, driven by strong performance in its Cloud Intelligence and e-commerce divisions. Alibaba shares soared 14.6% after its CEO declared that the company’s primary objective is now artificial general intelligence (AGI). Mainland China’s CSI 300 rose 1.26%. Meanwhile, Australian markets ended slightly lower as unemployment rose in January, despite stronger-than-expected hiring data.
EUROPE
European stock indices closed mixed, with investors taking a cautious approach amid key economic updates. UK retail sales grew 1% in January, but business activity slowed in February. Germany’s private sector activity showed improvement, while eurozone business activity remained unchanged. Investors also focused on Germany’s snap election on Sunday.
AMERICAS
The U.S. stock market experienced a sell-off following a series of economic indicators that fueled investor anxiety. The University of Michigan’s consumer sentiment index for February was revised downward to 64.7, with the five-year inflation outlook reaching 3.5%, a level not seen since 1995, indicating potential long term inflation issues. Further, existing home sales fell to 4.08 million units, below projections, and the S&P Global services PMI signaled a contraction, suggesting a slowdown in the service sector. This combination of weaker consumer confidence, elevated inflation expectations, a cooling housing market, and contracting service activity led investors to seek safer investments.
AFRICA
The Central Bank of Egypt kept its benchmark interest rate at 27.25%, marking 11 consecutive months of record-high borrowing costs. The lending rate remains unchanged at 28.25%, in line with expectations from a Reuters poll of ten analysts.
MIDDLE EAST
GCC equity markets are projected to deliver returns between 12% and 13% in 2025, according to First Abu Dhabi Bank’s (FAB) latest global investment outlook report. Growth is expected to be driven by recoveries in petrochemicals, financial markets, and geopolitical stability. Saudi Aramco is not expected to issue a performance-linked dividend this year, following a more balanced 2024 cash cycle, according to JPMorgan’s latest research note.
COMMODITIES
GOLD
Spot gold fell 0.3% to $2,930.85 per ounce, while U.S. gold futures dropped 0.4% to $2,945.20, as investors booked profits after the previous session’s record high.
OIL
Brent crude fell $1.50 (1.96%) to $74.98 per barrel by 11:06 a.m. ET, while U.S. West Texas Intermediate (WTI) crude lost $1.56 (2.15%) to $70.92. Despite the dip, both benchmarks are on track for a weekly gain due to supply disruptions in Russia.
