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%.

ADX

9,619

+0.7% (YTD: +2.1%)

DFM

5,375

-0.2% (YTD: +4.2%)

Nasdaq Dubai UAE20

4,441

+1.1% (YTD: +6.7%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.1% o/n

4.4% 1 yr

TASI

12,334

+0.6% (YTD: +2.5%)

EGX30

30,588

+0.5% (YTD: +2.9%)

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-

The DFM fell 0.2% yesterday on turnover of AED 703.2 mn. The index is up 4.2% YTD.

In the green: National International Holding Company (+10.7%), Emirates Islamic Bank (+5.7%) and National Industries Group (+3.9%).

In the red: Depa (-10%), Salik Company (-5.2%) and Orascom Construction (-3.8%).

Over on the ADX, the index rose 0.7% on turnover of AED 1 bn. Meanwhile Nasdaq Dubai closed up 1.1%.

CORPORATE ACTIONS-

Amlak’s board greenlit plans to sell select investment properties, including plots in Dubai’s Ras Al Khor area, pending regulatory and shareholder approvals, according to a DFM disclosure (pdf). The board will convene a shareholders’ meeting to finalize the divestment.

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