25% tariffs on imports of steel and aluminum in the US provoke the growth of metals

At the end of Monday, the Dow Jones Index (US30) rose by 0.38%. The S&P 500 Index (US500) gained 0.67%. The Nasdaq Technology Index (US100) was up 1.24%. Stock indices rose moderately on Monday thanks to gains in US metals and mining stocks after President Trump imposed 25% tariffs on US steel and aluminum imports. The tariff hike also drove gold prices to a record high and copper to a four-month high. Strengthening shares of chip companies also supported the broader market’s gains.

Shares of Uber Technologies (UBER) closed higher by more than 5%, adding to last Friday’s 6% rally after Pershing Square Capital Management announced it had acquired 30.3 million shares of the company. McDonald’s (MCD) is up more than 4% and led the Dow Jones Industrials after reporting an unexpected 0.5% increase in fourth-quarter comparable sales, which was better than the consensus expectations of a 0.93% decline. Illumina (ILMN) was down more than 5% after Barclays downgraded the stock to “underweight” from “equal weight” with a $100 price target.

Equity markets in Europe were mostly up on Monday. Germany’s DAX (DE40) rose by 0.57%, France’s CAC 40 (FR40) closed 0.42% higher, Spain’s IBEX 35 (ES35) added 0.16%, and the UK’s FTSE 100 (UK100) closed 0.77% higher. The FTSE 100 index rose to a record high of 8749, thanks to a 7.3% rise in BP shares after it was revealed that activist investor Elliott Management had increased its stake in the company in a bid to address its underperformance. On the news, BP shares closed at their highest level since July. Across sectors, oil and gas stocks rose more than 2%, while precious metals miners gained about 3.6% thanks to higher oil and gold prices.

ECB Vice President Guindos warned that the imposition of tariffs by the US would cause a “supply shock” that would “fundamentally” affect the expansion of the global economy.

WTI crude prices held above $72 a barrel on Tuesday, maintaining a nearly 2% gain from the previous session, helped by signs of declining Russian supply and rising supply risks. Russian oil production in January was reportedly even lower than the OPEC+ quota, and new US sanctions are targeting individuals and tankers carrying Iranian oil to China to put pressure on Tehran. In addition, Trump called on Israel to end its truce with Hamas if hostages are not returned this weekend, raising the threat of renewed conflict as both sides accuse each other of violating the agreement.

The price of silver (XAG/USD) remained just below $32 an ounce on Tuesday, holding near three-month highs amid rising demand for the precious metal following the imposition of the latest US tariffs. The US President Donald Trump signed an executive order imposing 25% tariffs on steel and aluminum imports “without exceptions or exemptions,” sparking concerns over inflation and a potential escalation of the global trade war. In addition, silver prices were supported by expectations of stronger industrial demand, particularly from the renewable energy sector, as well as prognoses of continued supply shortages.

Platinum (XPT/USD) prices rose to $1,020 per ounce, approaching the three-month high of $1,032 reached on January 31 and up more than 12% YTD. The rally in the precious metals market is being driven by rising demand for safe-haven commodities and monetary easing by major central banks, temporarily offsetting the slowdown in demand.

Asian markets were predominantly rising yesterday. Japan’s Nikkei 225 (JP225) rose by 0.05%, China’s FTSE China A50 (CHA50) gained 1.30%, Hong Kong’s Hang Seng (HK50) rose 1.84%, and Australia’s ASX 200 (AU200) was negative 0.34%.

The Australian dollar held near two-week highs on Tuesday, supported by rising commodity prices. In Australia, a private survey showed a small rise in Consumer Confidence in February, although it remained in pessimistic territory due to concerns over household shortfalls and continued cost of living pressures. Markets are keeping a close eye on the possible start of the Reserve Bank of Australia’s easing cycle this month as domestic inflation weakens and signs of slowing economic growth emerge.