Market Update 14/03/2025

U.S. Stock Market:

Wall Street rebounded overnight as weak U.S. inflation data provided a boost. The Nasdaq rose 1.3%, while the S&P 500 gained 0.6%.

Asian Stock Markets:

Asian stocks closed lower again on Wednesday. The Hang Seng Index fell 0.8%, the Shenzhen Index declined 0.4%, while the Nikkei edged up 0.1%. The Australian ASX Index dropped 1.3%, with financial stocks under pressure, falling 1.6%.

European Stock Markets:

After several tough trading sessions, European markets rebounded, with all major indices opening in the green. By the close, the FTSE and CAC indices had gained more than 0.5%, while the DAX rose more than 1.5% for the day.

Foreign Exchange Market:

The Australian dollar gained about 50 pips against the U.S. dollar following the release of U.S. CPI data, reaching a high of 0.6330. By the New York afternoon session, it was fluctuating around 0.6315 in preparation for the Sydney open. The New Zealand dollar rose to 0.5742 after the U.S. CPI data release. The euro hit a high of 1.0933 against the dollar but quickly retreated to a low of 1.0876. By the New York afternoon session, the euro steadily declined to around 1.0880, impacted by news that Russian President Vladimir Putin announced continued Russian military presence in the Kursk region. The USD/JPY pair rose from 148.20 to 149.20.

Economic Data:

U.S. February CPI increased by 0.2% month-over-month and 2.8% year-over-year, both 0.1% below expectations. Core CPI rose 0.2% month-over-month and 3.1% year-over-year, also falling short of expectations by 0.1%.
As widely expected by the market, the Bank of Canada cut interest rates by 25 basis points to 2.75%. The accompanying statement was generally dovish, emphasizing that trade tensions with the U.S. could lead to slower economic activity and increased inflationary pressures.

Top News:

Russian President Vladimir Putin announced that Russian troops remain active in the Kursk region, which had a negative impact on the euro exchange rate.