Global Market Wrap-Up: Rate Cuts, Inflation Surprises & Stock Volatility | DailyForex.pk

The past week was a rollercoaster for financial markets, with central banks adjusting monetary policies, inflation data shaping investor sentiment, and major corporations revealing earnings that moved stock indices. Australia and New Zealand surprised markets with rate cuts, while inflation reports from the UK and Canada fueled discussions on future policy directions. Meanwhile, gold surged toward record highs, the U.S. dollar weakened, and global equities saw mixed performances.

Let’s dive into the key developments that shaped the global financial landscape last week.

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Biggest Economic Events of the Week

📉 Australia’s Interest Rate Cut: AUD Drops Slightly

• Time: 5:30 AM (GMT+2)
• Event: RBA Cash Rate Decision
• Impact: AUDUSD fell by 0.15%

The Reserve Bank of Australia (RBA) cut rates to 4.10%, marking its first reduction since 2020. While inflation eased to 3.2%, the RBA remained cautious about future risks, leading to mixed reactions in currency markets.

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🇨🇦 Canada’s Inflation Inches Higher – CAD Strengthens

• Time: 15:30 (GMT+2)
• Event: Consumer Price Index (CPI)
• Impact: USDCAD increased by 0.04%

Canada’s inflation rate rose to 1.9%, fueled by energy costs. However, food prices saw a rare decline, dropping 0.6% year-over-year, marking the first drop since 2017.

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🇳🇿 New Zealand Cuts Rates to Boost Economy

• Time: 03:00 AM (GMT+2)
• Event: Official Cash Rate (OCR)
• Impact: NZDUSD inched up by 0.01%

New Zealand’s central bank lowered rates by 50 basis points to 3.75%, citing declining inflation and slowing economic growth.

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🇬🇧 UK Inflation Climbs – GBP Struggles to Find Support

• Time: 09:00 AM (GMT+2)
• Event: Consumer Price Index (CPI)
• Impact: GBPUSD dropped 0.15%

UK inflation rose to 3.9%, surpassing forecasts. Higher energy and food prices pushed the index upward, raising questions about future Bank of England (BoE) rate cuts.

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📊 Australia’s Job Market Surprises – AUD Rallies

• Time: 02:30 AM (GMT+2)
• Event: Employment Change
• Impact: AUDUSD surged 0.86%

Australia added 44,000 new jobs, signaling strong labor market resilience. The unemployment rate remained stable at 4.1%, supporting AUD gains.

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🇺🇸 U.S. Jobless Claims Tick Higher – USD Mixed

• Time: 15:30 (GMT+2)
• Event: Unemployment Claims
• Impact: EURUSD climbed 0.74%

U.S. jobless claims increased to 219,000, reflecting slight labor market softening.

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🇬🇧 UK Retail Sales Rebound – GBP Gains

• Time: 09:00 AM (GMT+2)
• Event: Retail Sales m/m
• Impact: GBPUSD dipped 0.32%

Retail sales rose 1.7%, rebounding from a 0.6% decline in December. Stronger consumer spending boosted market optimism.

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🇪🇺 Eurozone: PMI Reports Show Mixed Signals

• France: Services sector under pressure, economic contraction deepens.
• Germany: Modest growth, but inflation concerns persist.
• UK: Job losses rise despite mild economic expansion.

EURUSD slid 0.41% as investors digested the mixed data.

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🇺🇸 U.S. Business Activity Stalls – USD Weakens

• Time: 16:45 (GMT+2)
• Event: Flash PMI
• Impact: USDJPY declined 0.36%

The U.S. business activity index fell to a 17-month low, raising recession fears.

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Gold, Oil & Stock Market Weekly Review

🏆 Gold & Silver Shine Amid Inflation Concerns

• Gold (XAUUSD): +1.85% weekly gain – Safe-haven demand surges.
• Silver (XAGUSD): +0.94% – Following gold’s bullish trend.

🛢️ Crude Oil Dips Slightly

• WTI Crude: -0.44%, reflecting global demand concerns.
• Brent Oil: -0.38%, amid trade war uncertainty.

📉 Wall Street Takes a Hit

• S&P 500: -1.62%
• Dow Jones: -2.50%
• Nasdaq 100: -2.39%

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Top Performing Stocks of the Week

📈 Biggest Gainers

• MicroAlgo Inc. (MLGO): +393.02%
• Jet.AI Inc. (JTAI): +155.43%
• SRM Entertainment (SRM): +121.34%

📉 Biggest Losers

• TEN Holdings (XHLD): -78.68%
• Aspire BioPharma (ASBP): -76.41%
• INLIF Limited (INLF): -73.03%

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Earnings Reports – Winners & Losers

🚀 Alibaba (BABA) Sees Strong Revenue, But Misses Profits

• Earnings per share: $2.77 (missed estimates)
• Revenue: $38.38 billion (beat expectations)
• Stock Performance: +15.25% weekly gain

📊 Devon Energy (DVN) Beats Forecasts

• Earnings per share: $1.16 (above expectations)
• Stock Performance: +8.23% weekly gain

📉 Baidu (BIDU) Faces Revenue Decline

• Revenue: $4.68 billion (-2% YoY)
• Stock Performance: -6.36% weekly decline

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📢 Market Outlook: What’s Next?

🔹 Interest rate expectations – Will central banks continue easing?
🔹 U.S. economic growth – Will GDP data surprise markets?
🔹 Inflation trends – Will price pressures persist in key economies?
🔹 Gold’s trajectory – Will XAUUSD break above $3,000 per ounce?

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