Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
U.S. manufacturing grew for the first time in over two years in January, with the ISM Manufacturing PMI rising to 50.9 from 49.2 in December, signaling expansion. However, concerns remain after President Donald Trump announced tariffs on key trade partners. While he later paused 25% tariffs on Mexican and Canadian goods, a 10% levy on Chinese imports is set to proceed, raising fears of supply chain disruptions and inflation.
Economists warn that tariffs could strengthen the dollar, making U.S. exports less competitive. Kathy Bostjancic of Nationwide noted that tariffs act as a supply shock, increasing costs and slowing production, potentially hurting GDP growth. Meanwhile, Citigroup’s Veronica Clark pointed out that a stronger dollar would weigh on manufacturing, given that nearly half of U.S. manufactured goods are exported.
The ISM survey showed rising prices for the fourth straight month, with the prices-paid index jumping to 54.9. New orders also surged to 55.1 from 52.1, while supplier deliveries slowed. Factory employment expanded for the first time since May, and imports increased as manufacturers stocked up before tariffs took effect.
Despite some positive momentum, manufacturing output fell 0.4% year-over-year. Supply chain issues resurfaced, with transportation equipment manufacturers citing worsening shortages. The construction sector also faces headwinds, as higher tariffs could drive up the cost of lumber and other materials, potentially slowing homebuilding.
Stocks initially tumbled before rebounding, while the dollar weakened but remained supported by trade policies. U.S. Treasury yields declined as investors sought safer assets. With economic uncertainty persisting, analysts remain cautious about the sustainability of the manufacturing recovery amid ongoing trade tensions and policy shifts.
