US Dollar Rises Sharply on Fresh Tariff Threats

The dollar index jumped to 108.2 on Friday, supported by the possibility of lower dollar outflows from the US amid fresh tariff threats from President Trump.

The President stated that the US will impose retaliatory tariffs on all countries that have trade levies against the US next week, building on new barriers against Chinese goods recent threats against Canada and Mexico, which were eventually delayed.

The new reciprocal tariffs would particularly impact imports from the European Union, which currently has levies on the US, and would raise prices for US imports of pharmaceutical goods, chemicals, and machinery and vehicles.

In the meantime, expectations of a Fed rate cut were delayed amid sharper-than-expected wage growth and a softer-than-expected unemployment rate in January, offsetting the slowdown for payrolls.

Looking ahead, next week's CPI and PPI reports will provide further insight into inflation trends.

Americans Jittery Over Inflation, University of Michigan Survey Suggests

Economists polled by The Wall Street Journal had expected sentiment to improve after dropping in January. But it instead deteriorated.

Hiring Slows but Remains Solid, With Economy Adding 143,000 Jobs

The gain in jobs was lower than expected, but the job counts for November and December were revised upward by a combined 100,000.

U.S. Wholesale Inventories Fell Back in December

Stocks at U.S. wholesalers contracted in December, with the fall driven by inventories of longer-lasting goods, government data said.

S&P 500 Edges Up After Nonfarm Payrolls

U.S. stock indexes were steady to modestly higher after data showed the economy added fewer jobs than expected in January and unemployment eased.

Gold Has Smashed Record After Record. It Is Set to Continue Glittering in 2025

Gold's record-breaking rally isn't likely to slow down any time soon, as the market casts about for economic safe-havens.

Food Prices Fell in January on Cheaper Sugar, Vegetable Oils, UN Says

An index tracking global prices for a basket of staple foods dropped 1.6%, driven by significantly cheaper sugar and vegetable oils.

German Industrial Production Ends 2024 on Weak Note

Output declined 2.4% on month in December, driven by a fall in auto production, as the industrial sector faces the threat of a further slowdown from U.S. tariffs.

India Central Bank Kicks Off Easing Cycle to Boost Economy

The Reserve Bank of India cut its policy rate for the first time in nearly five years as economic growth slows and inflation cools.

ECB Updates Estimate of Neutral Rate as Policymakers Question Its Worth

The neutral rate of interest that neither spurs nor slows growth in the eurozone is between 1.75% and 2.25%, according to the European Central Bank.

The Drug Industry Is Having Its Own DeepSeek Moment

It isn't just artificial intelligence. Chinese biotech companies are now developing drugs faster and cheaper than their U.S. counterparts.

Stocks in the US were lower in the afternoon session as investors grappled with renewed tariff concerns, inflation fears, and the latest jobs report.

The S&P 500 and Nasdaq lost 0.8% and 1%, respectively, while the Dow Jones dropped 343 points.

Markets took a sharp downturn after reports suggested President Trump was considering reciprocal tariffs, which could lead to higher rates on US trading partners.

Adding to investor anxiety, the University of Michigan’s consumer sentiment report revealed that one-year inflation expectations surged to 4.3%, the highest since November 2023.

Meanwhile, the January jobs report showed the US economy added 143K jobs, slightly below expectations, but the unemployment rate ticked down to 4.0%.

Amazon shares slumped 4% after issuing weak revenue guidance, overshadowing its strong quarterly earnings.

Despite the volatility, major indices remained on track for modest weekly gains.

Stocks in the US were lower in the afternoon session as investors grappled with renewed tariff concerns, inflation fears, and the latest jobs report.

The S&P 500 and Nasdaq lost 0.8% and 1%, respectively, while the Dow Jones dropped 343 points.

Markets took a sharp downturn after reports suggested President Trump was considering reciprocal tariffs, which could lead to higher rates on US trading partners.

Adding to investor anxiety, the University of Michigan’s consumer sentiment report revealed that one-year inflation expectations surged to 4.3%, the highest since November 2023.

Meanwhile, the January jobs report showed the US economy added 143K jobs, slightly below expectations, but the unemployment rate ticked down to 4.0%.

Amazon shares slumped 4% after issuing weak revenue guidance, overshadowing its strong quarterly earnings.

Despite the volatility, major indices remained on track for modest weekly gains.

The STOXX Europe 600 Index is up 3.22 points or 0.60% this week to 542.75

• Up for seven consecutive weeks
• Up 40.56 points or 8.08% over the last seven weeks
• Largest seven week point and percentage gain since the week ending Dec. 15, 2023
• Longest winning streak since the week ending March 28, 2024 when the market rose for 10 straight weeks
• Up 10 of the past 12 weeks
• Today it is down 2.09 points or 0.38%
• Second highest close in history
• Largest one day point and percentage decline since Monday, Feb. 3, 2025
• Snaps a three trading day winning streak
• Off 0.38% from its record close of 544.84 hit Thursday, Feb. 6, 2025
• Today's closing value is the second highest this year
• Off 0.38% from its 52-week high of 544.84 hit Thursday, Feb. 6, 2025
• Up 12.41% from its 52-week low of 482.83 hit Tuesday, Feb. 13, 2024
• Rose 11.95% from 52 weeks ago
• Off 0.38% from its 2025 closing high of 544.84 hit Thursday, Feb. 6, 2025
• Up 6.80% from its 2025 closing low of 508.19 hit Friday, Jan. 3, 2025
• Year-to-date it is up 35.13 points or 6.92%

Source: Dow Jones Market Data, FactSet

The FTSE 100 Index is up 26.57 points or 0.31% this week to 8700.53

• Up for two consecutive weeks
• Up 198.18 points or 2.33% over the last two weeks
• Largest two week point and percentage gain since the week ending Jan 24, 2025
• Up six of the past seven weeks
• Today it is down 26.75 points or 0.31%
• Second highest close in history
• Largest one day point and percentage decline since Monday, Feb. 3, 2025
• Snaps a two trading day winning streak
• Off 0.31% from its record close of 8727.28 hit Thursday, Feb. 6, 2025
• Up 37.27% since the pre-Brexit vote level of 6338.10 hit Thursday, June 23, 2016
• Today's closing value is the second highest this year
• Off 0.31% from its 52-week high of 8727.28 hit Thursday, Feb. 6, 2025
• Up 15.82% from its 52-week low of 7512.28 hit Tuesday, Feb. 13, 2024
• Rose 14.90% from 52 weeks ago
• Off 0.31% from its 2025 closing high of 8727.28 hit Thursday, Feb. 6, 2025
• Up 6.08% from its 2025 closing low of 8201.54 hit Tuesday, Jan. 14, 2025
• Year-to-date it is up 527.51 points or 6.45%

Source: Dow Jones Market Data, FactSet