NEW YORK: Wall Street stocks followed suit in Europe, posting modest losses on Thursday as mixed economic data and rising tensions between the United States and Iran kept uncertainty and oil prices high.
The U.S. trade balance in goods hit a record high, while new jobless claims fell more than expected, providing some reassurance about the health of the labor market.
Today’s main market movements
*Stocks: US stocks fell due to declines in Nvidia and private equity stocks.
* Sectors/Stocks: Financials and Tech are the biggest decliners among S&P’s 11 major sectors, with Utilities and Energy leading the way. Elsewhere, aerospace/defense stocks have outperformed the broader market, while travel-related airlines and hotels/restaurants/cruise companies have posted significant declines.
* FX: Dollar gains as data suggests economic stability
*Bonds: U.S. Treasury yields are mixed as investors assess expected Fed policy, with the Treasury selling $9 billion in 30-year bonds that are indexed to inflation.
*Commodities/Metals: Gold gains as traders weigh geopolitical tensions against solid economic data.
Today’s important reading
1. European Central Bank President Christine Lagarde told colleagues she remains focused on her job and hinted she has no plans to leave her job early, contrary to a report in the Financial Times on Wednesday.
2. China sees an opportunity to reshape global trade, turn U.S. President Donald Trump’s tariffs to its advantage, and protect its economy from future U.S. pressure.
3. Sources say Netflix has plenty of room to increase its offer in the battle for Warner Bros.
4. A South Korean court has convicted former President Yoon Seok-yeol of masterminding a riot related to the country’s attempt to impose martial law in December 2024 and sentenced him to life in prison.
Today’s topic points
*U.S. trade deficit expands due to rapid increase in imports
December’s goods trade deficit was the largest on record, despite tariffs imposed by President Trump on U.S. trading partners.
*President Trump presses Iran to conclude ‘meaningful deal’
President Trump has warned that “bad things” will happen if Iran fails to reach a deal over its nuclear program, and appears to have set a 10-day deadline for the United States to take action.
*Fed Chairman Kashkari calls recent comments by President Hassett’s economic advisor an attack on the Fed’s independence
Minneapolis Fed President Neel Kashkari said Kevin Hassett’s call for New York Fed officials to be “disciplined” over recent investigations into tariffs represents the latest move by the Trump administration to undermine the central bank’s independence.
*“Peace Committee” convenes its first meeting
President Trump announced that countries have contributed $7 billion to the Gaza Reconstruction Fund, which is intended to rebuild the enclave after Hamas disarms.
What could move tomorrow’s markets?
*U.S. personal consumption expenditure (December)
* US 4th quarter GDP preliminary figures
* US preliminary PMI (February)
*US consumer sentiment (February)
* New home sales in the US (December)
*Canadian producer price (January)
*Canadian retail sales (December)
*UK retail sales (January)
* UK Latest PMI (February)
*German producer prices (January)
* France PMI news (February)
*India’s PMI preliminary figures (February)
*Atlanta Fed President Rafael Bostic will participate in economic outlook discussion
* The U.S. Supreme Court may rule on the legality of President Trump’s tariffs Opinions expressed are those of the author. They do not reflect the views of Reuters News. Reuters News is committed to integrity, independence and freedom from bias, based on the Trust Principles.
(Written by Stephen Culp; Edited by Nia Williams)
