Tuesday was a good day for global markets, with both the S&P 500 and the Euro Stoxx 600 closing at all-time highs following a turbulent few weeks triggered by US President Donald Trump introducing new tariffs. The benchmark S&P 500 closed up 0.2% at a record 6,130 and the Euro Stoxx 600 closed at 558.

The rationale: “I think people are still trying to digest everything going on with not only tariffs and how that could impact things but also general valuations … We feel like the market is pretty expensive,” Villere & Co’s Sandy Villere told Reuters.

Investors are keeping an eye out for: The Federal Reserve’s next move. The odds of a rate cut took another hit after inflation came in hotter than expected in January, with the consumer price index rising 3% y-o-y, the highest increase since June.

“You've got not only the tariff situation, which I think is going to be more sabre-rattling and negotiating than anything long-term; the other thing is inflation that could be a little more stubborn than people think and I don't think the Fed can cut interest rates as fast as originally expected,” Villere added.

What about European markets? It wasn’t just the pan-European index that hit a fresh record yesterday, German’s benchmark index also hit a new record high after rising 0.2% — banking and defence stocks drove the rally, Reuters writes, adding that investors are hopeful peace talks between Russia and Ukraine will likely increase military spending.

MARKETS THIS MORNING-

It’s another morning with Asian markets mixed in early trading — Japan’s Nikkei is down 0.4%, the Hang Seng is down 0.4%, meanwhile the Kospi is looking at gains of 1.8% and the Shanghai Composite is up 0.5%.

TASI

12,334

+0.6% (YTD: +2.5%)

MSCI Tadawul 30

1,536

+0.9% (YTD: +1.7%)

NomuC

31,380

-0.8% (YTD: -0.3%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

30,588

+0.5% (YTD: +2.9%)

ADX

9,619

+0.7% (YTD: +2.1%)

DFM

5,375

-0.2% (YTD: +4.2%)

S&P 500

6,130

+0.2% (YTD: +4.2%)

FTSE 100

8,767

0.0% (YTD: +7.3%)

Euro Stoxx 50

5,534

+0.3% (YTD: +13.0%)

Brent crude

USD 75.82

+0.8%

Natural gas (Nymex)

USD 4.01

+7.6%

Gold

USD 2,955

+1.9%

BTC

USD 94,942

-1.6% (YTD: +1.5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.6% yesterday on turnover of SAR 5.8 bn. The index is up 2.5% YTD.

In the green: Shaker (+5.8%), Nice One (+5.2%) and Zain KSA (+5.1%).

In the red: Anaam Holding (-5.1%), Almajed Oud (-3.6%) and Naseej (-3.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.8% yesterday on turnover of SAR 39 mn. The index is down 0.3% YTD.

In the green: NGDC (+9.3%), Sama Water (+7.3%) and Alrazi (+6.6%).

In the red: TMC (-8.7%), FAD (-8.7%) and Mobi Industry (-5.6%).

CORPORATE ACTIONS-

Al Wasatah Al Maliah (Wasatah Capital) will distribute SAR 5.3 mn in dividends for 2H 2024 at SAR 0.4 per share, it said in a disclosure to Tadawul. Eligible unitholders registered by the end of Wednesday, February 26, 2025 will receive their payments within 15 working days.

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