Global markets remain on edge as strikes continue to plague Iran and Gulf countries, sending ripples through economic sentiment. In Europe, the British economy significantly stalled in January, expanding by a mere 0.1% – half the market’s expectation – casting a shadow over the region’s outlook.
Conversely, China’s credit data for February surprised on the upside, with loans to the real economy expanding a robust 6% year-on-year. Despite this bright spot, the escalating Mideast conflict continued to take its toll, pushing European and Emerging Markets stocks to close their second consecutive week of losses. The Euro has consequently sunk to a seven-month low, while the Japanese Yen touched its weakest level since July 2024, reflecting broad currency weakness against the U.S. dollar amid safe-haven flows.
As trading unfolded, European stocks shed an average of 0.3%, while Asian markets also registered declines, with Japan down 0.6% and mainland China 0.4%. U.S. equity futures, however, pointed to modest gains at the open, suggesting a potential divergence. In commodities, gold edged down 0.5% to $5,100, and Brent crude retreated 1.5% to $99 a barrel, following recent spikes.