U.S. Trade Deficit Widened In December and 2024 as Businesses Front Load Shipments

The U.S. international trade deficit soared in December and expanded in 2024 amid growing trade tensions. 

The US trade deficit expanded to $98.4 billion in December 2024, following a revised $78.9 billion gap in November, the U.S. Bureau of Economic Analysis reported Wednesday.

The goods deficit increased by $18.9 billion to $123 billion, and the services surplus shrank by $0.6 billion to $24.5 billion.

Total imports advanced 3.5% to $364.9 billion, while exports declined 2.6% to $266.5 billion, mainly due to crude oil, pharmaceutical preparations, and computers.

For 2024, the deficit increased 17% from 2023 to $918.4 billion.

For 2024, exports rose 3.9% to $3.2 trillion, and imports expanded by 6.6% to $4.1 trillion, resulting in an increase of 17% in deficit to $918.4 billion.

The largest trade deficits were recorded with China, totaling $295.4 billion, with the EU advancing to $235.6 billion, with Mexico expanding to $171.8 billion, and Vietnam increasing to $123.5 billion.

Investor Confidence Shaken After Trump Tariffs Roil Global Markets, AMD and Alphabet Results Weigh

Wall Street indexes meandered in early trading on Wednesday after mixed earnings from AMD and Alphabet overwhelmed market sentiment. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as quarterly earnings announcements gathered pace. 

Investors shifted focus from hollow tariff threats to corporate results and reacted to the latest updates from about 80 companies, including Alphabet, Uber Technologies, AMD, Electronic Arts, Chipotle Mexican Grill, and Walt Disney Co. 

The yield on 10-year U.S. Treasury notes hovered around 4.5% as investors revise inflation expectations higher amid the persistent threat of Trump tariffs. 

Most manufactured goods from China now face a total of 25% tariffs after the latest increase of 10%, and European goods are likely to face at least 10% tariffs as early as the first week in April.

Tariffs are indirect taxes paid by consumers and not by suppliers or manufacturers located outside the U.S., and a key contributor to inflationary forces. 

Moreover, the tariffs on imported goods also disproportionately impact lower-income families, who rely on cheaper goods made in Asia.

The U.S. Postal Service reversed its previously announced plans to process incoming parcels from China and Hong Kong, altering its stance only hours after announcing the measure. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 6,027.73, the Nasdaq Composite edged down 0.5% to 19,547.72, and the Russell 2000 index increased 1.41% to 2,290.21.

The yield on 2-year Treasury notes edged lower to 4.20%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.70%.

WTI crude oil decreased $1.09 to $71.60 a barrel, and natural gas prices edged lower by $0.04 to $3.21 a thermal unit.

Gold rose by $23.38 to $2,864.27 an ounce, and silver edged up by $0.17 to $32.24.

The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.47 to 107.52 and traded at a two-year high.

U.S. Stock Movers 

Uber Technologies declined 5.3% to $66.05 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion. 

AMD dropped 9.8% to $107.80 after the advanced chipmaker reported weaker-than-expected revenue in its data center unit in the fourth quarter. 

Alphabet plunged 7% to $191.70 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Apple decreased 2% to $228.16 on speculation that Chinese regulators are likely to expand its investigation list targeting American companies, which could include the popular smartphone maker. 

Walt Disney Co. increased 1.3% to $114.81 after the media company and theme park operator's fiscal first quarter earnings surpassed market expectations. 

Disney+ subscribers slightly declined, and the company estimated another "modest decline" in the current quarter. 

Chipotle Mexican Grill dropped 5.5% to $56.17 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Investor Confidence Shaken After Trump Tariffs Roil Global Markets, AMD and Alphabet Results Weigh

Wall Street indexes meandered in early trading on Wednesday after mixed earnings from AMD and Alphabet overwhelmed market sentiment. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as quarterly earnings announcements gathered pace. 

Investors shifted focus from hollow tariff threats to corporate results and reacted to the latest updates from about 80 companies, including Alphabet, Uber Technologies, AMD, Electronic Arts, Chipotle Mexican Grill, and Walt Disney Co. 

The yield on 10-year U.S. Treasury notes hovered around 4.5% as investors revise inflation expectations higher amid the persistent threat of Trump tariffs. 

Most manufactured goods from China now face a total of 25% tariffs after the latest increase of 10%, and European goods are likely to face at least 10% tariffs as early as the first week in April.

Tariffs are indirect taxes paid by consumers and not by suppliers or manufacturers located outside the U.S., and a key contributor to inflationary forces. 

Moreover, the tariffs on imported goods also disproportionately impact lower-income families, who rely on cheaper goods made in Asia.

The U.S. Postal Service reversed its previously announced plans to process incoming parcels from China and Hong Kong, altering its stance only hours after announcing the measure. 

U.S. Stock Movers 

Uber Technologies declined 5.3% to $66.05 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion. 

AMD dropped 9.8% to $107.80 after the advanced chipmaker reported weaker-than-expected revenue in its data center unit in the fourth quarter. 

Alphabet plunged 7% to $191.70 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Apple decreased 2% to $228.16 on speculation that Chinese regulators are likely to expand its investigation list targeting American companies, which could include the popular smartphone maker. 

Walt Disney Co. increased 1.3% to $114.81 after the media company and theme park operator's fiscal first quarter earnings surpassed market expectations. 

Disney+ subscribers slightly declined, and the company estimated another "modest decline" in the current quarter. 

Chipotle Mexican Grill dropped 5.5% to $56.17 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Europe Mover: Banco Santander, Diego, Infineon, Ferrari, Pandora, Spotify, Tom Tom, Vodafone

European markets remained under pressure amid economic and international trade uncertainties, and investors shifted focus to the latest batch of earnings. 

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Recent Earnings 

Infineon Technologies AG surged 10.4% to €34.49 despite the German semiconductors manufacturer reporting a decline in first quarter sales by 8%, but earnings improved sequentially from the fourth quarter of 2024.

Revenue dropped to €3.42 billion from €3.70 billion, profit decreased to €246 million from €587 million, and earnings per diluted share fell to 18 cents from 44 cents a year ago.

For the second quarter of fiscal 2025, the company estimated revenue of around €3.6 billion.

Infineon raised its full-year 2025 guidance for a flat to slightly higher revenue, compared to its previous forecast for a slight revenue decline.

In the fourth quarter of fiscal 2024, the company swung to a net loss of €84 million, and a diluted loss per share of 7 cents.

Diageo Plc dropped 1.6% to 2,326 pence after the UK-based alcoholic beverage company posted lower-than-expected earnings for the fiscal half year 2025 ending in December.

With 45% of U.S. sales coming from Canada and Mexico, the company expects a short-term hit with potential downside to its lowered fiscal 2025 profitability, if the proposed U.S. tariffs are implemented.

Net sales declined 0.6% to $10.90 billion from $10.96 billion, operating profit fell 5% to $3.15 billion from $3.32 billion, and earnings per share fell 12% to 86.9 cents from 98.4 cents a year ago.

Profit for the period fell to $2.07 billion from $2.34 billion a year earlier.

Diageo plans to pay an interim dividend of 40.50 cents per share on April 24 to holders of ordinary shares and U.S. ADRs on register as of February 28. 

Vodafone Group Plc slumped 7.1% to €65.08 pence after the British telecom company posted steady revenue growth for the third quarter of fiscal 2025, but sales in Germany declined.

Revenue increased to €9.81 billion from €9.35 billion, and operating profit declined to €1.02 billion from €1.25 billion a year ago.

Group service revenue growth accelerated to 5.2%, supported by a step-up in the U.K. and strong performance in Turkey and Africa, while in Germany is impacted by the TV law change.

During the quarter, Vodafone completed the sale of its Italian business for €8 billion, and agreed to merge with mobile data provider Three in the U.K.

Ferrari NV surged 8% to €448.70 after the Italian racing and sports car manufacturer reported higher revenue in fiscal year 2024, despite declining shipments in mainland China, Hong Kong and Taiwan.

Revenue increased to €6.67 billion from €5.97 billion, net profit rose to €1.53 billion from €1.26 billion, and earnings per diluted share rose to €8.46 from €6.90 a year ago.

For the three months ending in December, revenue jumped to €1.74 billion from €1.52 billion, net profit surged to €386 million from €294 million, and earnings per diluted share rose to €2.14 from €1.62 a year earlier.

For fiscal year 2025, Ferrari estimated a 5% revenue increase to €7 billion, operating profit up 7% to €2.03 billion from €1.89 billion in 2024, and earnings per share above €8.60.

The company proposed a share repurchase program worth €150 million, allocated no later than February 20.

TomTom N.V. plunged 14.2% to €4.30 after the Dutch developer and creator of location technology and consumer electronics estimated lower 2025 sales on automotive market slowdown.

Revenue in the fourth quarter decreased by 1% to €142.2 million from €143.4 million, net loss shrank to €5.7 million from €11.6 million, and diluted loss per share declined to 5 cents from 9 cents a year ago.

For fiscal year 2025, the company estimated revenue between €505 million to €565 million, compared to €574 million last year.

Spotify gained 1.3% to €595.90 after the Swedish music streaming company reported higher earnings for its fourth quarter ending in December.

Revenue increased to €4.24 billion from €3.67 billion, net income jumped to €367 million from a loss of €70 million, and earnings per diluted share rose to €1.76 from a loss of 36 cents a year ago.

For the first quarter of 2025, the company estimated monthly active users of 678 million and premium subscribers of 265 million.

The company revenue in the first quarter is estimated to increase to €4.2 billion from €3.6 billion a year earlier.

NXP Semiconductors N.V. dropped 0.8% to €193.50 after the Dutch company posted a 9% decline in fourth-quarter sales.

Revenue declined to $3.11 billion from $3.42 billion, net income slumped to $505 million from $703 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.

NXP paid $258 million in cash dividends during the quarter, in addition, the company repurchased $455 million of its common shares.

Looking ahead to the first quarter of 2025, NXP estimated revenue between $2.72 billion and $2.69 billion, and earnings per share between $2.29 and $2.79.

Europe Mover: Banco Santander, Diego, Infineon, Ferrari, Pandora, Spotify, Tom Tom, Vodafone

European markets remained under pressure amid economic and international trade uncertainties, and investors shifted focus to the latest batch of earnings. 

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Recent Earnings 

Infineon Technologies AG surged 10.4% to €34.49 despite the German semiconductors manufacturer reporting a decline in first quarter sales by 8%, but earnings improved sequentially from the fourth quarter of 2024.

Revenue dropped to €3.42 billion from €3.70 billion, profit decreased to €246 million from €587 million, and earnings per diluted share fell to 18 cents from 44 cents a year ago.

For the second quarter of fiscal 2025, the company estimated revenue of around €3.6 billion.

Infineon raised its full-year 2025 guidance for a flat to slightly higher revenue, compared to its previous forecast for a slight revenue decline.

In the fourth quarter of fiscal 2024, the company swung to a net loss of €84 million, and a diluted loss per share of 7 cents.

Diageo Plc dropped 1.6% to 2,326 pence after the UK-based alcoholic beverage company posted lower-than-expected earnings for the fiscal half year 2025 ending in December.

With 45% of U.S. sales coming from Canada and Mexico, the company expects a short-term hit with potential downside to its lowered fiscal 2025 profitability, if the proposed U.S. tariffs are implemented.

Net sales declined 0.6% to $10.90 billion from $10.96 billion, operating profit fell 5% to $3.15 billion from $3.32 billion, and earnings per share fell 12% to 86.9 cents from 98.4 cents a year ago.

Profit for the period fell to $2.07 billion from $2.34 billion a year earlier.

Diageo plans to pay an interim dividend of 40.50 cents per share on April 24 to holders of ordinary shares and U.S. ADRs on register as of February 28. 

Vodafone Group Plc slumped 7.1% to €65.08 pence after the British telecom company posted steady revenue growth for the third quarter of fiscal 2025, but sales in Germany declined.

Revenue increased to €9.81 billion from €9.35 billion, and operating profit declined to €1.02 billion from €1.25 billion a year ago.

Group service revenue growth accelerated to 5.2%, supported by a step-up in the U.K. and strong performance in Turkey and Africa, while in Germany is impacted by the TV law change.

During the quarter, Vodafone completed the sale of its Italian business for €8 billion, and agreed to merge with mobile data provider Three in the U.K.

Ferrari NV surged 8% to €448.70 after the Italian racing and sports car manufacturer reported higher revenue in fiscal year 2024, despite declining shipments in mainland China, Hong Kong and Taiwan.

Revenue increased to €6.67 billion from €5.97 billion, net profit rose to €1.53 billion from €1.26 billion, and earnings per diluted share rose to €8.46 from €6.90 a year ago.

For the three months ending in December, revenue jumped to €1.74 billion from €1.52 billion, net profit surged to €386 million from €294 million, and earnings per diluted share rose to €2.14 from €1.62 a year earlier.

For fiscal year 2025, Ferrari estimated a 5% revenue increase to €7 billion, operating profit up 7% to €2.03 billion from €1.89 billion in 2024, and earnings per share above €8.60.

The company proposed a share repurchase program worth €150 million, allocated no later than February 20.

TomTom N.V. plunged 14.2% to €4.30 after the Dutch developer and creator of location technology and consumer electronics estimated lower 2025 sales on automotive market slowdown.

Revenue in the fourth quarter decreased by 1% to €142.2 million from €143.4 million, net loss shrank to €5.7 million from €11.6 million, and diluted loss per share declined to 5 cents from 9 cents a year ago.

For fiscal year 2025, the company estimated revenue between €505 million to €565 million, compared to €574 million last year.

Spotify gained 1.3% to €595.90 after the Swedish music streaming company reported higher earnings for its fourth quarter ending in December.

Revenue increased to €4.24 billion from €3.67 billion, net income jumped to €367 million from a loss of €70 million, and earnings per diluted share rose to €1.76 from a loss of 36 cents a year ago.

For the first quarter of 2025, the company estimated monthly active users of 678 million and premium subscribers of 265 million.

The company revenue in the first quarter is estimated to increase to €4.2 billion from €3.6 billion a year earlier.

NXP Semiconductors N.V. dropped 0.8% to €193.50 after the Dutch company posted a 9% decline in fourth-quarter sales.

Revenue declined to $3.11 billion from $3.42 billion, net income slumped to $505 million from $703 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.

NXP paid $258 million in cash dividends during the quarter, in addition, the company repurchased $455 million of its common shares.

Looking ahead to the first quarter of 2025, NXP estimated revenue between $2.72 billion and $2.69 billion, and earnings per share between $2.29 and $2.79.

European Markets React to Domestic Earnings, Eurozone PPI Accelerates In December

European markets struggled to advance after U.S. trade relations uncertainty added to market anxieties rooted in the ongoing weak economic backdrop. 

Benchmark indexes in Paris, Frankfurt, Milan, and London traded sideways as the European Union and the UK braced for contentious trade discussions with the U.S.

Investor confidence in the Trump administration weakened after the U.S. walked back from threats of aggressive tariffs on goods shipped from Mexico and Canada but increased tariffs by an additional 10% on all imports from China.

The U.S. flip-flop on tariffs stoked speculation in the European Union that the newly appointed presidential administration is more interested in scoring domestic political points rather than confronting structural U.S. economic issues.

Over the last sixty years, the U.S. international trade balance has resulted in an annual deficit, barring a few years, indicating persistent reliance on foreign-made goods from Asia and Europe.

Eurozone PPI Advanced Third Consecutive Month in December 

Closer to home, producer price inflation in the eurozone rose in December, an increase in six of the last seven months. 

Producer price inflation in the Euro Area increased monthly by 0.4% and was unchanged on an annual basis, according to the latest data released by Eurostat on Wednesday.

Prices in the currency union rose for the third consecutive month in December, and among the largest economies of the bloc, prices advanced 1% in France, 0.9% in Spain, and 0.8% in Italy, but fell 0.1% in Germany. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

The euro increased to $1.04; the British pound was higher at $1.25; and the U.S. dollar was lower and traded at 90.21 Swiss cents.

Brent crude decreased $0.69 to $75.51 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

European Markets React to Domestic Earnings, Eurozone PPI Accelerates In December

European markets struggled to advance after U.S. trade relations uncertainty added to market anxieties rooted in the ongoing weak economic backdrop. 

Benchmark indexes in Paris, Frankfurt, Milan, and London traded sideways as the European Union and the UK braced for contentious trade discussions with the U.S.

Investor confidence in the Trump administration weakened after the U.S. walked back from threats of aggressive tariffs on goods shipped from Mexico and Canada but increased tariffs by an additional 10% on all imports from China.

The U.S. flip-flop on tariffs stoked speculation in the European Union that the newly appointed presidential administration is more interested in scoring domestic political points rather than confronting structural U.S. economic issues.

Over the last sixty years, the U.S. international trade balance has resulted in an annual deficit, barring a few years, indicating persistent reliance on foreign-made goods from Asia and Europe.

Eurozone PPI Advanced Third Consecutive Month in December 

Closer to home, producer price inflation in the eurozone rose in December, an increase in six of the last seven months. 

Producer price inflation in the Euro Area increased monthly by 0.4% and was unchanged on an annual basis, according to the latest data released by Eurostat on Wednesday.

Prices in the currency union rose for the third consecutive month in December, and among the largest economies of the bloc, prices advanced 1% in France, 0.9% in Spain, and 0.8% in Italy, but fell 0.1% in Germany. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

The euro increased to $1.04; the British pound was higher at $1.25; and the U.S. dollar was lower and traded at 90.21 Swiss cents.

Brent crude decreased $0.69 to $75.51 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Japan Indexes Extend 2-Day Rally, Panasonic and Isetan Mitsukoshi In Focus

Stock market indexes in Tokyo advanced for the second consecutive day amid a rally in tech stocks and easing of tensions between the U.S. and its two key trading partners. 

The Nikkei 225 stock average and the TOPIX dropped slightly after semiconductor equipment technology recovered following a rally on Wall Street. 

Market sentiment recovered after the U.S. presidential administration caved in and delayed the implementation of tariffs on goods shipped from Mexico and Canada. 

However, the U.S. imposed an additional 10% tariff on goods imported from China, and the U.S. Postal Service temporarily blocked parcels from China and Hong Kong. 

Japan's Real Wages Advanced for the Second Consecutive Month in December

Japan's real wages, adjusted for inflation, advanced for the second consecutive month in December, supported by the rise in winter bonuses. 

Nominal wages increased for the second consecutive month in December, surpassing the market expectations and advancing the most in three decades. 

The annual increase in nominal wages in December accelerated to 4.8% in December from 3.9% in November, and real wages adjusted for inflation advanced 0.6%, marking the second month of increase. 

December month's wage increase was largely driven by a 6.8% rise in winter bonuses, the Ministry of Health, Labour, and Welfare reported Wednesday. 

Despite the surge in wages, the ministry noted wages and base salaries are not "keeping pace with prices."

Real wages declined 0.2% in 2024, after nominal wages rose 2.9% while consumer price inflation in the year was 3.2%. 

Real wages declined for the third year in a row, after falling 2.5% in 2023, 1.0% in 2022, butt rising 0.6% in 2021. 

Japan's Services Sector Growth Accelerated In January

Japan's service sector activities accelerated in January, according to the data released by S&P Global. 

The au Jibun Bank Japan Services PMI increased to 53.0 in January from 50.9 in December. 

A reading above 50 indicates an increase in growth, while below 50 shows contraction.

Japan Indexes and Movers 

The Nikkei 225 Stock Average edged up a fraction to close at 38,831.48, and the TOPIX advanced 0.3% to 2,745.41. 

Panasonic Holdings Corp. soared 13.6% to ¥1,738.50 after the company raised earnings outlook for its battery division and announced its plans to reform management. 

Revenue in the nine months ending in December increased 1.6% to 6.4 trillion yen, but net profit declined 25.4% to 308.7 billion yen, and diluted earnings per share decreased to 123.51 yen from 170.96 yen.

The company said its reforms will begin in the next financial year starting in April and aims to improve profitability by 150 billion yen and an additional 150 billion yen over the next two fiscal years.

Panasonic said in a separate release that its battery unit's operating profit in the fiscal third quarter ending in December rose 39%, and the company raised its full-year outlook by 14% to 124 billion yen, or $799 million.

The company estimated fiscal year 2025 revenue to increase 98% from a year ago to 8.3 trillion yen and operating profit to jump 19% to 380 billion yen.

Isetan Mitsukoshi Holdings dropped 4.8% to ¥2,542.0, despite the department store retailer reporting a higher-than-expected 21% increase in operating profit in the fiscal third quarter. 

Revenue in the nine-month period ending in December increased 3.9% to 417.5 billion yen, ordinary profit surged 47% to 66 billion yen, and diluted earnings per share advanced to 124.72 yen from 81.28 yen a year ago.

Japan Indexes Extend 2-Day Rally, Panasonic and Isetan Mitsukoshi In Focus

Stock market indexes in Tokyo advanced for the second consecutive day amid a rally in tech stocks and easing of tensions between the U.S. and its two key trading partners. 

The Nikkei 225 stock average and the TOPIX dropped slightly after semiconductor equipment technology recovered following a rally on Wall Street. 

Market sentiment recovered after the U.S. presidential administration caved in and delayed the implementation of tariffs on goods shipped from Mexico and Canada. 

However, the U.S. imposed an additional 10% tariff on goods imported from China, and the U.S. Postal Service temporarily blocked parcels from China and Hong Kong. 

Japan's Real Wages Advanced for the Second Consecutive Month in December

Japan's real wages, adjusted for inflation, advanced for the second consecutive month in December, supported by the rise in winter bonuses. 

Nominal wages increased for the second consecutive month in December, surpassing the market expectations and advancing the most in three decades. 

The annual increase in nominal wages in December accelerated to 4.8% in December from 3.9% in November, and real wages adjusted for inflation advanced 0.6%, marking the second month of increase. 

December month's wage increase was largely driven by a 6.8% rise in winter bonuses, the Ministry of Health, Labour, and Welfare reported Wednesday. 

Despite the surge in wages, the ministry noted wages and base salaries are not "keeping pace with prices."

Japan's Services Sector Growth Accelerated In January

Japan's service sector activities accelerated in January, according to the data released by S&P Global. 

The au Jibun Bank Japan Services PMI increased to 53.0 in January from 50.9 in December. 

A reading above 50 indicates an increase in growth, while below 50 shows contraction.

Japan Indexes and Movers 

The Nikkei 225 Stock Average edged up a fraction to close at 38,831.48, and the TOPIX advanced 0.3% to 2,745.41. 

Panasonic Holdings Corp. soared 13.6% to ¥1,738.50 after the company raised earnings outlook for its battery division and announced its plans to reform management. 

Revenue in the nine months ending in December increased 1.6% to 6.4 trillion yen, but net profit declined 25.4% to 308.7 billion yen, and diluted earnings per share decreased to 123.51 yen from 170.96 yen.

The company said its reforms will begin in the next financial year starting in April and aims to improve profitability by 150 billion yen and an additional 150 billion yen over the next two fiscal years.

Panasonic said in a separate release that its battery unit's operating profit in the fiscal third quarter ending in December rose 39%, and the company raised its full-year outlook by 14% to 124 billion yen, or $799 million.

The company estimated fiscal year 2025 revenue to increase 98% from a year ago to 8.3 trillion yen and operating profit to jump 19% to 380 billion yen.

Isetan Mitsukoshi Holdings dropped 4.8% to ¥2,542.0, despite the department store retailer reporting a higher-than-expected 21% increase in operating profit in the fiscal third quarter. 

Revenue in the nine-month period ending in December increased 3.9% to 417.5 billion yen, ordinary profit surged 47% to 66 billion yen, and diluted earnings per share advanced to 124.72 yen from 81.28 yen a year ago.

China and Hong Kong Indexes Turned Lower Following U.S.-China Tariff War

Stock market indexes in China and Hong Kong traded down amid ongoing international trade uncertainties and domestic economic growth worries. 

The Hang Seng index decreased 1%, and the mainland-focused CSI 300 index declined 0.6%. 

Market indexes declined in Shanghai and Shenzhen after investors returned from a weeklong holiday and reviewed the new trade restrictions announced by the U.S. 

China imposed retaliatory tariffs of 15% on the U.S. certain types of coal and natural gas, and 10% on oil, farm equipment, and select automobile imports effective February 10.

China's countermeasures appear to be not as strong as expected, suggesting that policymakers in Beijing are less worried about the new tariffs and trade barriers. 

The 10% tariffs imposed by the U.S. are likely to have a short-term impact on shipments of lithium batteries, home appliances, and electric vehicles to the U.S. 

E-commerce companies traded down after the U.S. Postal Service temporarily blocked parcels from China and Hong Kong after the announcements of new tariffs. 

Despite the tit-for-tat tariffs, the U.S. presidential administration is struggling to stem the rising flow of manufactured goods from China, Asia, and Europe. 

The U.S. international trade balance has generated annual deficits for seven decades, and tariffs are not likely to change the long-term trend. 

U.S. politicians and economists have long promoted free trade, and adherence to that trade policy has saddled the world's largest economy with an annual trade deficit, which has now reached $1.1 trillion. 

China Stock Movers 

The Hang Seng index declined 1.1% to 20,556.82, and the mainland-focused CSI 300 index dropped 0.6% to 3,795.73.

JD.com declined 3.8% to HK $155.90, Alibaba Group Holding decreased 0.3% to HK $97.40, and Trip.com Group fell 5.6% to HK $537.50.

Shipping carriers advanced, despite the announcements of tariffs by the U.S. and China. 

Orient Overseas International rose 2.7% to HK $105.50, COSCO Shipping Holdings gained 2.5% to HK $11.68, and Pacific Basin Shipping gained 1.9% to HK $1.66.

Electric vehicle makers declined amid worries that large investments in factories in Mexico designed to deliver products in the U.S. may not deliver intended results. 

BYD decreased 1.7% to HK $281.40, Li Auto fell 4.2% to HK $90.25, and Xpeng Inc. dropped 1.7% to HK $64.55.

China and Hong Kong Indexes Turned Lower Following U.S.-China Tariff War

Stock market indexes in China and Hong Kong traded down amid ongoing international trade uncertainties and domestic economic growth worries. 

The Hang Seng index decreased 1%, and the mainland-focused CSI 300 index declined 0.6%. 

Market indexes declined in Shanghai and Shenzhen after investors returned from a weeklong holiday and reviewed the new trade restrictions announced by the U.S. 

China imposed retaliatory tariffs on the U.S. coal, oil, natural gas, farm equipment, and select automobile imports effective February 10.

China's countermeasures appear to be not as strong as expected, suggesting that policymakers in Beijing are less worried about the new tariffs and trade barriers. 

The 10% tariffs imposed by the U.S. are likely to have a short-term impact on shipments of lithium batteries, home appliances, and electric vehicles to the U.S. 

E-commerce companies traded down after the U.S. Postal Service temporarily blocked parcels from China and Hong Kong after the announcements of new tariffs. 

Despite the tit-for-tat tariffs, the U.S. presidential administration is struggling to stem the rising flow of manufactured goods from China, Asia, and Europe. 

The U.S. international trade balance has generated annual deficits for seven decades, and tariffs are not likely to change the long-term trend. 

U.S. politicians and economists have long promoted free trade, and adherence to that trade policy has saddled the world's largest economy with an annual trade deficit, which has now reached $1.1 trillion. 

China Stock Movers 

The Hang Seng index declined 1.1% to 20,556.82, and the mainland-focused CSI 300 index dropped 0.6% to 3,795.73.

JD.com declined 3.8% to HK $155.90, Alibaba Group Holding decreased 0.3% to HK $97.40, and Trip.com Group fell 5.6% to HK $537.50.

Shipping carriers advanced, despite the announcements of tariffs by the U.S. and China. 

Orient Overseas International rose 2.7% to HK $105.50, COSCO Shipping Holdings gained 2.5% to HK $11.68, and Pacific Basin Shipping gained 1.9% to HK $1.66.

Electric vehicle makers declined amid worries that large investments in factories in Mexico designed to deliver products in the U.S. may not deliver intended results. 

BYD decreased 1.7% to HK $281.40, Li Auto fell 4.2% to HK $90.25, and Xpeng Inc. dropped 1.7% to HK $64.55.

India Movers: Asian Paints, Godrej Properties, Max Financial, Sterling Tools, Tata Power, Titan Company, Torrent Power, Whirlpool of India

Stock market indexes traded around the flatline, and investors awaited the rate decisions from the Reserve Bank of India later in the week. 

The Sensex index decreased by 0.2% to 78,427.48, and the Nifty index advanced by 0.04% to 23,748.90.

On the Mumbai stock exchange, 18 stocks traded at their 52-week highs, and 30 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.12 against the U.S. dollar.

Whirlpool of India decreased 2.8% to ₹1,118.0 despite the home appliance maker reporting a 57% jump in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,755.3 crore from ₹1,571.2 crore, after-tax profit rose to ₹44.5 crore from ₹29.9 crore, and diluted earnings per share jumped to ₹3.46 from ₹2.21 a year ago.

Titan Company Ltd. dropped 2.5% to ₹3,508.0 after the jewelry retailer reported a 26% rise in sales and a 1% decline in profit in the December quarter.

Consolidated revenue in the December quarter advanced to ₹17,868 crore from ₹14,300 crore, net income fell to ₹1,047 crore from ₹1,053 crore, and diluted earnings per share dropped to ₹11.80 from ₹11.91 a year ago.

Tata Power Company Ltd. rose 2% to ₹369.20 after the electric power company reported a 10% rise in profit in the December quarter.

Max Financial Services advanced 3.2% to ₹1,141.60 after the company's life insurance arm in partnership with Axis Bank planned to raise ₹1,300 crore through a bond offering.

Godrej Properties Ltd. plunged 1.2% to ₹2362 despite the residential real estate developer reporting a sharp jump in its earnings in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,240 crore from ₹548.3 crore, after-tax profit jumped to ₹158.2 crore from ₹62.7 crore, and diluted earnings per share rose to ₹5.70 from ₹2.24 a year ago.

Bajaj Electricals Ltd. declined 1.5% to ₹719.70 after the electric consumer goods provider reported an 11% decline in net income in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,302.5 crore from ₹1,271 crore, net income dropped to ₹33.4 crore from ₹37.4 crore, and diluted earnings per share fell to ₹2.89 from ₹3.24 a year ago.

Sterling Tools Ltd. dropped 3.6% to ₹454.40 despite the automotive fastener maker reporting a marginal rise in revenue in the December quarter.

Consolidated revenue in the December quarter advanced to ₹262.68 crore from ₹234 crore, after-tax profit was flat at ₹13.6 crore, and diluted earnings per share eased to ₹3.73 from ₹3.77 a year ago.

Torrent Power Ltd. increased 3.5% to ₹1,399.65 after the electric power plant company reported a 31% increase in net income in the December quarter.

Consolidated revenue in the December quarter increased to ₹6,671.2 crore from ₹6,419.7 crore, net income advanced to ₹489.3 crore from ₹374.1 crore, and diluted earnings per share rose to ₹9.76 from ₹7.49 a year ago.

PC Jeweller Ltd. jumped 5% to ₹15.71 after the specialty retailer swung to a profit in the December quarter.

Consolidated revenue in the December quarter surged sixteenfold to ₹683.4 crore from ₹43.4 crore, net income swung to a profit of ₹148 crore from a loss of ₹198 crore, and diluted earnings per share jumped to 16 paise from a loss of 43 paise a year ago.

Asian Paints Ltd. fell 4.2% to ₹2,257, and the paint maker reported a 24% plunge in the December quarter.

Consolidated revenue decreased to ₹8,692.4 crore from ₹9,241.7 crore, net income fell to ₹1,128.4 crore from ₹1,475.2 crore, and diluted earnings per share dropped to ₹11.58 from ₹15.10 a year ago.

India Movers: Asian Paints, Godrej Properties, Max Financial, Sterling Tools, Tata Power, Titan Company, Torrent Power, Whirlpool of India

Stock market indexes traded around the flatline, and investors awaited the rate decisions from the Reserve Bank of India later in the week. 

The Sensex index decreased by 0.2% to 78,427.48, and the Nifty index advanced by 0.04% to 23,748.90.

On the Mumbai stock exchange, 18 stocks traded at their 52-week highs, and 30 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.12 against the U.S. dollar.

Whirlpool of India decreased 2.8% to ₹1,118.0 despite the home appliance maker reporting a 57% jump in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,755.3 crore from ₹1,571.2 crore, after-tax profit rose to ₹44.5 crore from ₹29.9 crore, and diluted earnings per share jumped to ₹3.46 from ₹2.21 a year ago.

Titan Company Ltd. dropped 2.5% to ₹3,508.0 after the jewelry retailer reported a 26% rise in sales and a 1% decline in profit in the December quarter.

Consolidated revenue in the December quarter advanced to ₹17,868 crore from ₹14,300 crore, net income fell to ₹1,047 crore from ₹1,053 crore, and diluted earnings per share dropped to ₹11.80 from ₹11.91 a year ago.

Tata Power Company Ltd. rose 2% to ₹369.20 after the electric power company reported a 10% rise in profit in the December quarter.

Max Financial Services advanced 3.2% to ₹1,141.60 after the company's life insurance arm in partnership with Axis Bank planned to raise ₹1,300 crore through a bond offering.

Godrej Properties Ltd. plunged 1.2% to ₹2362 despite the residential real estate developer reporting a sharp jump in its earnings in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,240 crore from ₹548.3 crore, after-tax profit jumped to ₹158.2 crore from ₹62.7 crore, and diluted earnings per share rose to ₹5.70 from ₹2.24 a year ago.

Bajaj Electricals Ltd. declined 1.5% to ₹719.70 after the electric consumer goods provider reported an 11% decline in net income in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,302.5 crore from ₹1,271 crore, net income dropped to ₹33.4 crore from ₹37.4 crore, and diluted earnings per share fell to ₹2.89 from ₹3.24 a year ago.

Sterling Tools Ltd. dropped 3.6% to ₹454.40 despite the automotive fastener maker reporting a marginal rise in revenue in the December quarter.

Consolidated revenue in the December quarter advanced to ₹262.68 crore from ₹234 crore, after-tax profit was flat at ₹13.6 crore, and diluted earnings per share eased to ₹3.73 from ₹3.77 a year ago.

Torrent Power Ltd. increased 3.5% to ₹1,399.65 after the electric power plant company reported a 31% increase in net income in the December quarter.

Consolidated revenue in the December quarter increased to ₹6,671.2 crore from ₹6,419.7 crore, net income advanced to ₹489.3 crore from ₹374.1 crore, and diluted earnings per share rose to ₹9.76 from ₹7.49 a year ago.

PC Jeweller Ltd. jumped 5% to ₹15.71 after the specialty retailer swung to a profit in the December quarter.

Consolidated revenue in the December quarter surged sixteenfold to ₹683.4 crore from ₹43.4 crore, net income swung to a profit of ₹148 crore from a loss of ₹198 crore, and diluted earnings per share jumped to 16 paise from a loss of 43 paise a year ago.

Asian Paints Ltd. fell 4.2% to ₹2,257, and the paint maker reported a 24% plunge in the December quarter.

Consolidated revenue decreased to ₹8,692.4 crore from ₹9,241.7 crore, net income fell to ₹1,128.4 crore from ₹1,475.2 crore, and diluted earnings per share dropped to ₹11.58 from ₹15.10 a year ago.

U.S. and World Markets Refocus On Earnings After Tariff Threats Ring Hollow

Stock market indexes in New York overcame morning jitters and managed to advance as investors overlooked Trump's tariff threats. 

The S&P 500 index advanced 0.5%, and the Nasdaq Composite gained 1%, as focus turned away from the threat of tariffs that appear to be designed for political consumption rather than economic reasons.

Investors are increasingly worried that the Trump administration may not be capable of providing the steady and stable policy backdrop needed to support economic growth and bring down elevated inflation.

The U.S. suspended the threat of 25% tariffs on goods shipped from Mexico and Canada for the next thirty days, with little to show for it in return. 

However, Chinese goods will face an additional 10% tariff, which is most likely to be passed on to consumers and fuel inflation in the weeks ahead. 

China retaliated with its own set of tariffs on U.S. goods effective February 10. 

China slapped tariffs of up to 15% on coal and liquefied natural gas and additional tariffs on crude oil, farm equipment, and selected automobiles and vehicles.

China also opened an investigation into the business practices of Google, and sources in Beijing confirm that the government is likely to expand investigations to other American companies doing business in Greater China. 

Job openings in December declined sharply to a three-month low of 7.6 million, the U.S. Bureau of Labor Statistics reported Tuesday. 

Job openings fell from 8.2 million in November and 7.8 million in October, and the largest decreases were recorded in the South by 286,000 and in the West by 250,000. 

On the earnings front, investors reviewed the latest earnings from Estee Lauder, Palantir, UBS, Dassault Systèmes, PayPal, Pfizer, and PepsiCo.

Estee Lauder plunged 11% after the company swung to a quarterly loss, and PayPal dropped 10% after the company's card business struggled. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.5% to 6,028.71, the Nasdaq Composite edged up 1.1% to 19,604.84, and the Russell 2000 index gained 0.9% to 2,278.90.

The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes increased to 4.58%, and 30-year Treasury bonds advanced to 4.82%.

WTI crude oil decreased $2.31 to $70.86 a barrel, and natural gas prices edged lower by $0.18 to $3.17 a thermal unit.

Gold rose by $19.17 to $2,832.85 an ounce, and silver edged up by $0.41 to $31.89.

The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.13 to 108.29 and traded at a two-year high.

European Markets Struggled to Advance

European market indexes whipsawed as investors reviewed the latest U.S. actions on the international trade policy. 

Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction after the U.S. suspended the threat of 25% tariffs on Mexico and Canada but imposed an additional 10% tariff on Chinese imports. 

Market sentiment has been dampened amid the growing realization that the current U.S. presidential administration is likely to pursue a confrontational trade policy.

The U.S. is targeting the European Union to purchase more goods and reduce its overall trade surplus.

Over the last ten years, the European Union has averaged a goods surplus of 100 billion a year with the U.S.

The latest trade confrontation with the U.S. comes at a critical time for the European Union, and the region's economy has been stagnant for many years, and businesses have been struggling to adjust to high costs of energy.

Spain's Jobless Rate Drops to 17-Year Low

The number of people registered as jobless increased by 38.275 to 2.6 million, the lowest level in 17 years, according to the data released by the Ministry of Labor and Social Welfare Tuesday.

Unemployment among young people under 25 years of age rose by 1.4% to 188,364 people, the lowest on record for January.

Europe Indexes and Yields

The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10. 

The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.

The euro declined to $1.03; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 90.87 Swiss cents.

Brent crude decreased $0.90 to $75.06 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers

UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter. 

BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.

Sensex Rebounds 1% In Cautious Trading After U.S. Walks Away from Tariff Threats

Stock market indexes in Mumbai rebounded, and the rupee recovered from five-day losses amid the possible easing of geopolitical tensions. 

The Sensex and Nifty indexes advanced 0.9%, but caution prevailed as investors shifted their attention to the latest batch of earnings. 

The newly appointed U.S. presidential administration walked away from its threat of imposing tariffs on goods shipped from Mexico and Canada and delayed the additional tax on imported goods by a month. 

The tariffs announced by Donald Trump, which are an indirect tax on consumers, appeared to be designed for political gains and lacked short- or long-term economic goals.

The latest flip-flop by the U.S. president only encourages other leading nations to engage in direct trade negotiations that bypass the U.S. and China. 

Closer to home, Britannia Industries, Nestle India, Hindustan Unilever, and ITC dropped between 1% and 2%, but Tata Motors, ONGC, BEL, and L&T gained more than 1%.

Stock Indexes and Bond Yields

The Sensex index increased by 0.9% to 77,886.38, and the Nifty index advanced by 0.9% to 23,559.10. On the Mumbai stock exchange, 26 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.05 against the U.S. dollar.

The gold price decreased by 0.07% to ₹83,222 per ten grams, and the price fell by 0.02% to ₹94,237 per kilo.

Crude oil declined by 0.51 to ₹6,302 per barrel, and natural gas dropped by 0.07% to ₹291.50 per thermal unit.

India Movers

Trent plunged 6% to ₹5,767.40 and extended losses in 2025 to 19% after investors worried about the stretched valuations.

Zomato declined 3.3% to ₹230.51, and the online app operator and the delivery service provider extended this year's losses to 16% amid a worry of slowing growth in consumer spending. 

ITC Ltd. dropped 1% to ₹449.25, and the company was among the most actively traded stocks after the finance minister did not announce a new tax on cigarette sales. 

U.S. and World Markets Refocus On Earnings After Tariff Threats Ring Hollow

Stock market indexes in New York overcame morning jitters and managed to advance as investors overlooked Trump's tariff threats. 

The S&P 500 index advanced 0.5%, and the Nasdaq Composite gained 1%, as focus turned away from the threat of tariffs that appear to be designed for political consumption rather than economic reasons.

Investors are increasingly worried that the Trump administration may not be capable of providing the steady and stable policy backdrop needed to support economic growth and bring down elevated inflation.

The U.S. suspended the threat of 25% tariffs on goods shipped from Mexico and Canada for the next thirty days, with little to show for it in return. 

However, Chinese goods will face an additional 10% tariff, which is most likely to be passed on to consumers and fuel inflation in the weeks ahead. 

China retaliated with its own set of tariffs on U.S. goods effective February 10. 

China slapped tariffs of up to 15% on coal and liquefied natural gas and additional tariffs on crude oil, farm equipment, and selected automobiles and vehicles.

China also opened an investigation into the business practices of Google, and sources in Beijing confirm that the government is likely to expand investigations to other American companies doing business in Greater China. 

Job openings in December declined sharply to a three-month low of 7.6 million, the U.S. Bureau of Labor Statistics reported Tuesday. 

Job openings fell from 8.2 million in November and 7.8 million in October, and the largest decreases were recorded in the South by 286,000 and in the West by 250,000. 

On the earnings front, investors reviewed the latest earnings from Estee Lauder, Palantir, UBS, Dassault Systèmes, PayPal, Pfizer, and PepsiCo.

Estee Lauder plunged 11% after the company swung to a quarterly loss, and PayPal dropped 10% after the company's card business struggled. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.5% to 6,028.71, the Nasdaq Composite edged up 1.1% to 19,604.84, and the Russell 2000 index gained 0.9% to 2,278.90.

The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes increased to 4.58%, and 30-year Treasury bonds advanced to 4.82%.

WTI crude oil decreased $2.31 to $70.86 a barrel, and natural gas prices edged lower by $0.18 to $3.17 a thermal unit.

Gold rose by $19.17 to $2,832.85 an ounce, and silver edged up by $0.41 to $31.89.

The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.13 to 108.29 and traded at a two-year high.

European Markets Struggled to Advance

European market indexes whipsawed as investors reviewed the latest U.S. actions on the international trade policy. 

Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction after the U.S. suspended the threat of 25% tariffs on Mexico and Canada but imposed an additional 10% tariff on Chinese imports. 

Market sentiment has been dampened amid the growing realization that the current U.S. presidential administration is likely to pursue a confrontational trade policy.

The U.S. is targeting the European Union to purchase more goods and reduce its overall trade surplus.

Over the last ten years, the European Union has averaged a goods surplus of 100 billion a year with the U.S.

The latest trade confrontation with the U.S. comes at a critical time for the European Union, and the region's economy has been stagnant for many years, and businesses have been struggling to adjust to high costs of energy.

Spain's Jobless Rate Drops to 17-Year Low

The number of people registered as jobless increased by 38.275 to 2.6 million, the lowest level in 17 years, according to the data released by the Ministry of Labor and Social Welfare Tuesday.

Unemployment among young people under 25 years of age rose by 1.4% to 188,364 people, the lowest on record for January.

Europe Indexes and Yields

The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10. 

The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.

The euro declined to $1.03; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 90.87 Swiss cents.

Brent crude decreased $0.90 to $75.06 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers

UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter. 

BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.

Sensex Rebounds 1% In Cautious Trading After U.S. Walks Away from Tariff Threats

Stock market indexes in Mumbai rebounded, and the rupee recovered from five-day losses amid the possible easing of geopolitical tensions. 

The Sensex and Nifty indexes advanced 0.9%, but caution prevailed as investors shifted their attention to the latest batch of earnings. 

The newly appointed U.S. presidential administration walked away from its threat of imposing tariffs on goods shipped from Mexico and Canada and delayed the additional tax on imported goods by a month. 

The tariffs announced by Donald Trump, which are an indirect tax on consumers, appeared to be designed for political gains and lacked short- or long-term economic goals.

The latest flip-flop by the U.S. president only encourages other leading nations to engage in direct trade negotiations that bypass the U.S. and China. 

Closer to home, Britannia Industries, Nestle India, Hindustan Unilever, and ITC dropped between 1% and 2%, but Tata Motors, ONGC, BEL, and L&T gained more than 1%.

Stock Indexes and Bond Yields

The Sensex index increased by 0.9% to 77,886.38, and the Nifty index advanced by 0.9% to 23,559.10. On the Mumbai stock exchange, 26 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.05 against the U.S. dollar.

The gold price decreased by 0.07% to ₹83,222 per ten grams, and the price fell by 0.02% to ₹94,237 per kilo.

Crude oil declined by 0.51 to ₹6,302 per barrel, and natural gas dropped by 0.07% to ₹291.50 per thermal unit.

India Movers

Trent plunged 6% to ₹5,767.40 and extended losses in 2025 to 19% after investors worried about the stretched valuations.

Zomato declined 3.3% to ₹230.51, and the online app operator and the delivery service provider extended this year's losses to 16% amid a worry of slowing growth in consumer spending. 

ITC Ltd. dropped 1% to ₹449.25, and the company was among the most actively traded stocks after the finance minister did not announce a new tax on cigarette sales.