Global markets showed mixed movements on Wednesday ahead of the release of US inflation data, with investors closely watching Federal Reserve Chair Jerome Powell’s remarks on monetary policy. Powell stated that the Fed is in no rush to adjust rates, emphasizing that inflation remains high despite significant progress.
Meanwhile, concerns over rising inflationary pressures grew after former President Donald Trump imposed 25% tariffs on steel and aluminum imports, escalating trade war fears. The Fed has cut policy rates by 100 basis points since September 2024, but officials warn that persistent inflation and Trump’s trade policies could limit further adjustments.
Market reactions varied across regions. In the US, stocks closed mixed, with the Dow Jones rising 0.28%, the Nasdaq falling 0.36%, and the S&P 500 remaining flat. American steel companies saw gains, with Century Aluminum surging 5.6% following the tariff announcement. In Europe, stocks trended positively as European Commission President Ursula von der Leyen vowed to respond with countermeasures against the tariffs.
Meanwhile, Asian markets showed resilience, with Japan and South Korea voicing concerns over US trade policies. Chinese tech stocks surged as DeepSeek AI gained global recognition, boosting investor sentiment.
Commodity and currency markets also reacted to global uncertainties. Gold, after reaching a record $2,943, settled at $2,898 per ounce. Brent crude oil dropped 0.3% to $76.5 per barrel, while the US dollar index rose 0.1% to 108. Türkiye’s BIST 100 climbed 0.38% to 9,882.79 points, while the US dollar/Turkish lira exchange rate remained steady.
Analysts warn that market volatility may persist as global economies brace for the impact of Trump’s trade policies and the Fed’s cautious approach to rate adjustments.
