Midweek trading is set to be driven by key economic data from China, the Eurozone, and the US, with investors focusing on industrial production figures, retail sales, and inflation trends. Market participants will be watching closely for any signs of slowing economic activity or shifts in central bank policy outlooks.
KEY INDICATORS
China industrial production & retail sales (February)
Provides insights into post-holiday economic activity.
A slowdown could trigger concerns about weaker global demand, impacting commodities and Asian markets.
Eurozone industrial production (January)
A key measure of the region’s manufacturing strength.
Weak data may add pressure on the ECB ahead of its next rate decision.
US 10-year Treasury auction
A critical test of investor demand for US government debt.
Higher yields could signal expectations of prolonged Fed tightening, impacting equities and the USD.
MARKET MOVERS
EUR/USD
Possible short preference Short positions below 1.08764 with targets at 1.08545 & 1.08332 in extension. Alternative scenario Above 1.09228 look for further upside with 1.09421 & 1.09692 as targets. The RSI calls for a new downleg.
Euro muted, dollar gains ground amid tariff turmoil and upcoming CPI data
The euro was broadly steady on Wednesday, while the dollar recovered mildly from recent losses as traders assessed the European response to fresh tariffs from US President Donald Trump and positioned for key consumer price index data.
The euro had inched down by 0.1% against the dollar to USD 1.0911 by 10:37 AM GMT. The dollar index, which measures the greenback against a basket of its currency pairs, rose by 0.2% to 103.54.
Brussels also vowed to impose fresh tariffs on US exports from next month in response to new American levies on more than EUR 18 billion in EU exports.
The focus is now on the all-important CPI data for further cues on US inflation and interest rates. The print is due later on Wednesday and is expected to show that inflation remained sticky in February.
European markets rally as US inflation rises less than expected, EU retaliates to Trump’s tariffs
European markets saw broad gains on Wednesday after the European Union announced retaliatory tariffs on a range of US imports.
The regional Stoxx 600 was 0.78% higher during afternoon trade, climbing down from earlier gains, with major bourses remaining in positive territory.
German stocks led gains, with the DAX index up 1.4% at 2:30 p.m. in London.
US markets have been on a roller-coaster ride amid uncertainty around President Donald Trump’s tariffs. A 25% duty on steel and aluminium imports went into effect on Wednesday.
US inflation rate hits 2.8% in February, less than expected.
The consumer price index, a wide-ranging measure of costs across the US economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labour Department.
All-item CPI had increased 0.5% in January.
Crude Oil WTI
Possible long preference Long positions above 67.98 with targets at 68.49 & 69.15 in extension. Alternative scenario Below 66.88 look for further downside with 656.47 & 65.88 as targets. The RSI calls for a new upleg.
TODAY’S NEWS HEADLINES
China to impose retaliatory tariffs on some Canadian products as trade war heats up
China on Saturday announced plans to impose a 100% tariff on Canadian rapeseed oil, oil cakes, and peas, adding that a 25% levy would be placed on aquatic products and pork originating in Canada.
The measures are scheduled to come into force from March 20, according to a statement from China’s Customs Tariff Commission of the State Council.
It is the latest in a series of tariff announcements by the US, China, Canada, and Mexico in recent months.
Beijing said a 100% tariff would be imposed on Canadian rapeseed oil, oil cakes, and peas, while a 25% levy would be placed on aquatic products and pork originating in Canada.
Dow drops 300 points, giving up earlier gain, as trade worries hit stocks once again
The Dow Jones Industrial Average fell again on Wednesday as increasing tensions between the US and key trade partners continued to rattle investors.
The blue-chip index fell 354 points, or 0.9%.
The S&P 500 was trading 0.3% lower.
The Nasdaq Composite advanced 0.3%.
President Donald Trump’s steel and aluminium tariffs took effect on Wednesday, and Canada said it will impose 25% retaliatory duties on more than USD 20 billion worth of US goods.
The European Union also responded swiftly, pledging to impose counter-tariffs on EUR 26 billion (USD 28.33 billion) worth of US imports beginning in April.
Oil up 2% on tighter US supplies but tariff concerns loom
Oil prices rose 2% on Wednesday, as US government data showed tighter oil and fuel inventories than expected, though investors kept an eye on mounting fears of a US economic slowdown and the impact of tariffs on global economic growth.
Brent futures rose USD 1.33, or 1.9%, to USD 70.89 a barrel at 2:55 PM GMT.
US West Texas Intermediate crude futures gained USD 1.45, or 2.2%, to USD 67.70 a barrel.
US crude stockpiles rose by 1.4 million barrels in the latest week, less than an expected 2-million-barrel rise.
US gasoline inventories fell by 5.7 million barrels, versus expectations for a 1.9 million-barrel draw, while distillate stocks also dropped by more than expected.
