U.S. inflation came in lower than expected, with prices rising slowly as the economy displayed signs of moderation while some even called for recession; now the main market is almost 10% lower from the peak. The Federal Reserve will likely scrutinise these figures closely when weighing how President Trump's proposed policies might reignite pricing pressures across the economy. While housing costs keep pushing overall inflation higher, these costs were partially neutralised by falling transportation and energy expenses as oil prices are at multi-month lows. Considering this favourable data, market participants still forecast the Fed will maintain current interest rates at its upcoming March meeting.

EQUITY

Stocks rebound slightly on softer inflation data, with technology stocks leading the gains, mainly by Nvidia and Tesla, following two days of intense sell-offs. However, the market's optimism was limited by growing trade tensions, as retaliatory tariffs were announced by Canada and the European Union, mainly related to consumer goods, in response to President Trump's steel and aluminium duties.

GOLD

Gold prices finally break above $2,930 strong resistance level in conjunction with cooler U.S. inflation data, although prices seem to hit another wall at $2,947. The U.S. consumer price index has strengthened expectations of potential Federal Reserve rate cuts, which supports non-yielding gold. Analysts suggest $3,000 per ounce is the next logical target for gold due to ongoing trade tensions and inflation concerns from tariffs on imports.

OIL

Oil prices consolidated following a recent rally due to a U.S. gasoline stocks drawdown, as macroeconomic concerns, including fears of a U.S. recession and global trade tensions, offset strong near-term demand expectations. Fears over increasing supply from OPEC+ and weakening jet fuel consumption weighed on sentiment, although a price squeeze from the Ukraine war may return with Putin spotted wearing not a suit of diplomacy but the threads of conflict.

CURRENCY

The U.S. dollar has seen a modest rise as escalating trade tensions and newly imposed tariffs are keeping Federal Reserve policies restrictive. The yen and euro showed varied responses to domestic economic factors and trade developments, with the yen gaining on expectations of Bank of Japan rate hikes, while the euro consolidated. Consequently, currency markets remained volatile as investors navigated unpredictable tariff policies and their implications for global economic stability.