At the end of Wednesday, the Dow Jones Index (US30) rose by 0.71%. The S&P 500 Index (US500) was up 0.39%. The Nasdaq Technology Index (US100) was up 0.42%. The US stock indices rebounded from early losses on Wednesday, helped by a sharp decline in long-dated Treasury yields as markets priced in a series of mixed earnings releases and economic data. Shares of Broadcom and Nvidia soared 6% and 4.5%, respectively, setting a strong pace for chip makers. Defensive stocks also performed well, with banks, healthcare and consumer staples rising after a weaker-than-expected ISM Services PMI strengthened bets on multiple Fed rate cuts this year. On the other hand, the ADP report showed that the private sector added more jobs than expected, underscoring the resilience of the labor market. For its part, Alphabet shares fell by 7.5% after the company missed cloud revenue expectations and announced higher-than-expected spending plans for AI. In addition, AMD fell more than 10% due to lower data center revenue and Uber fell 7% after weak first-quarter guidance.

The Mexican peso weakened to 20.58 per US dollar amid lingering concerns over US tariffs and heightened expectations of a dovish Banxico stance in response to disappointing data on the country’s economy. Meanwhile, Mexico’s manufacturing PMI fell to 49.1 in January, the steepest decline in factory activity in three months, with low Business Confidence indicating a slowdown in the economy. Weak data continues to weigh on the peso, while downward revisions to growth and inflation expectations reinforce expectations of a rate cut by the Bank of Mexico, putting further pressure on the currency.

The Canadian dollar strengthened to 1.43 per US dollar in February, hitting a seven-week high, as investors welcomed signs of economic growth and easing trade tensions with the US. Despite a second consecutive month of contraction, the PMI Index improved to 49.5 in January from 49, with services continuing to contract and manufacturing rising for a fourth month.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE40) rose by 0.37%, France’s CAC 40 (FR40) closed down 0.19%, Spain’s IBEX 35 (ES35) added 1.35%, and the UK’s FTSE 100 (UK100) closed positive 0.61%. European markets recovered losses and closed higher on Wednesday thanks to strong earnings performance across sectors.

WTI crude oil prices fell to $71.20 per barrel on Wednesday following the release of an EIA report that showed a larger-than-expected increase in US crude inventories. Inventories rose by 8.664 million barrels last week, the biggest increase in almost a year, exceeding market projections for a 2.6 million barrel rise and a 5.025 million barrel increase reported by API.

Asian markets traded mostly flat yesterday. Japan’s Nikkei 225 (JP225) was up 0.08%, China’s FTSE China A50 (CHA50) was down 1.31%, Hong Kong’s Hang Seng (HK50) decreased by 0.93%, and Australia’s ASX 200 (AU200) was positive 0.51%.

The Australian dollar held near $0.628 on Thursday after rising for three consecutive sessions, helped by a weaker US dollar. The dollar’s decline was driven by easing fears of a global trade war following cautious tariff measures from the US and China. US President Donald Trump and Chinese President Xi Jinping are expected to discuss developments in trade relations during an upcoming phone call, raising hopes that further escalation will be avoided and tariffs may even be lifted. On the domestic front, data showed Australia’s trade surplus narrowed in December as export growth slowed and import growth accelerated. Market sentiment is increasingly shifting towards expectations that the Reserve Bank of Australia may cut interest rates this month amid weakening inflation and signs of slowing economic activity.

Vietnam’s annual inflation rate rose to 3.63% in January 2025, the highest since July last year, up from 2.94% in December. The main upward pressure came from faster price increases in food and medical services. The annualized core inflation rate, which excludes volatile goods, rose to 3.07%, the highest since November 2023, up from 2.85% in December.