Global Market Financial Weekly Report：

Global Market Financial Weekly Report：
 (February 2025, Week 2)
The second week of February 2025 was marked by significant geopolitical and macroeconomic developments, including escalating trade tensions, inflation surprises, and key corporate decisions shaping investor sentiment. Below are the top five events that defined global financial markets:
Citation: BBC News、NASDAQ News
U.S. Escalates Trade War with Tariffs on Steel and Aluminum
1
25% Import Tax
President Donald Trump imposed a 25% import tax on steel and aluminum, sparking global trade tensions.
2
Global Reaction
The move led to retaliation from China and threats of countermeasures from European leaders.
3
Affected Countries
Trade tensions escalated with Canada, Mexico, the EU, and China.
U.S. Inflation Surpasses Expectations
3.0%
CPI Increase
The January U.S. Consumer Price Index (CPI) increased by 3.0%, exceeding forecasts.
3.3%
Core Inflation
Core inflation, excluding food and energy, climbed to 3.3%.
This increase is intensifying concerns that inflation is far from under control, leading investors to reassess the Federal Reserve's monetary policy stance.
Chevron and Blue Origin Announce Large-Scale Workforce Reductions
Chevron
Plans to cut 20% of its workforce by 2026 due to legal battles and energy market shifts.
Blue Origin
Has laid off 1,400 employees in a strategic move to ramp up its New Glenn rocket production.
These actions reflect increasing corporate restructuring efforts in the energy and aerospace sectors.
Honda-Nissan Merger Talks Collapse
1
1
$60 Billion Deal
The anticipated merger between Honda and Nissan fell apart.
2
2
Reasons
Leadership disputes and strategic misalignment led to the collapse.
3
3
Consequences
Nissan left particularly vulnerable to growing competition from Chinese EV manufacturers.
Stock Markets Remain Resilient
1
U.S. Markets
U.S. stock indices closed higher this week despite trade tensions and inflation concerns.
2
Nasdaq 100
Reached an 8-week high, supported by a rally in technology and semiconductor stocks.
3
European Markets
Climbed to a 25-year high, driven by optimism over a potential Ukraine peace agreement.
Trade War: U.S. Tariffs and Global Retaliation
1
U.S. Action
Reinstatement of 25% tariffs on steel and aluminum by the U.S. government.
2
China's Response
China imposed tariffs on crude oil and agricultural machinery.
3
EU Reaction
The EU signaled potential retaliatory tariffs on American agricultural goods and tech products.
Market Impact: Industrial stocks were hit hard, with Ford and General Motors warning of increased production costs, while U.S. steelmakers saw a short-term rally.
U.S. Inflation and Its Effect on Monetary Policy
The unexpected 3.0% CPI increase in January has complicated the Federal Reserve's policy outlook. Rising costs in food, energy, and insurance suggest that inflation is still persistent, despite previous Fed efforts to control it. The 10-year U.S. Treasury yield climbed to 4.63%, reflecting investor concerns that the Fed might delay rate cuts.
Chevron and Blue Origin Layoffs: A Corporate Restructuring Trend?
Chevron
Energy giant Chevron announced it would cut 20% of its workforce over the next two years as it battles legal issues and industry disruptions.
Blue Origin
Blue Origin's layoff of 1,400 employees reflects increased competition with SpaceX and a strategic pivot toward launching New Glenn rockets.
Market Impact: The energy and aerospace sectors are undergoing shifts, with Chevron's announcement raising concerns about oil market stability, while Blue Origin's move highlights intensifying private space competition.
Honda-Nissan Merger Collapse: Future Implications
1
2
3
1
Missed Opportunity
Failed merger seen as a chance for Japan's auto sector to consolidate
2
Nissan's Challenges
Financial difficulties and increased speculation about potential partnerships
3
Chinese Competition
Growing threat from Chinese EV competitors like BYD
Market Impact: Nissan's stock fell, while Honda has indicated alternative expansion plans.
Stock Market Strength Amid Uncertainty
Despite trade war fears and inflationary pressures, global stock markets showed resilience. The Nasdaq 100 reached an 8-week high, European stocks hit a 25-year peak, and Chinese equities rebounded as expectations of government stimulus increased.
Global Market Review
U.S. Equities
The S&P 500 rose 1.04%, the Dow Jones gained 0.77%, and the Nasdaq 100 surged 1.43%, led by AI stocks and chipmakers.
European Markets
The Euro Stoxx 50 jumped 1.75%, marking a multi-decade high.
Asian Markets
China's Shanghai Composite ended the week higher amid government stimulus speculation, while Japan's Nikkei 225 gained 1.28%, supported by strong tech stock performance.
Economic Data Analysis
1
Inflation
The U.S. CPI rose 3.0%, pushing Fed rate cut expectations further into 2025.
2
Labor Market
Weekly jobless claims fell by 7,000 to 213,000, signaling ongoing labor market strength.
3
Commodities
Oil prices dropped to a 6-week low, while gold remained strong as investors sought safe-haven assets.
Market Outlook
Stock Market
Tech stocks and semiconductors are likely to remain strong, supported by AI growth.
Industrials and automakers face headwinds from trade tariffs.
Energy stocks could see further volatility amid corporate restructuring efforts.
Bond Market
The 10-year U.S. Treasury yield remains high at 4.63%, as inflation concerns delay potential Fed rate cuts.
European bond yields remain stable, with markets pricing in a 100% probability of an ECB rate cut in March.
Forex Market
The U.S. Dollar Index weakened as lower bond yields signaled softer rate hike expectations.
The Euro strengthened on rate-cut optimism, while the Japanese Yen gained on risk-off sentiment.
Commodities Market
Gold remains attractive amid inflationary pressures and geopolitical uncertainty.
Oil markets are volatile due to supply concerns and lower demand expectations.
Wheat and corn prices declined, while cotton saw price corrections.
Conclusion
1
2
3
4
1
Trade Tensions
Dominated by escalating global trade conflicts
2
Inflation Concerns
Unexpected rise in U.S. inflation complicating Fed policy
3
Corporate Restructuring
Major companies announcing significant workforce reductions
4
Market Resilience
Global markets showing strength despite uncertainties
The second week of February 2025 was dominated by trade tensions, inflation concerns, and corporate restructuring. Despite these risks, global markets remained resilient, with tech and semiconductor stocks leading gains. The U.S. inflation surprise has put the Federal Reserve in a challenging position, while trade policy uncertainties could weigh on industrial stocks. Going forward, investors will closely monitor the Fed's next moves, upcoming economic data releases, and corporate earnings reports. Markets are at an inflection point, and geopolitical risks will continue to shape investment strategies in the weeks ahead.