By Dow Jones Newswires Staff
Global market sentiment lifted following a recovery in U.S. equities and President Trump's relatively uneventful State of the Union address.
Trump in his address to Congress redoubled his commitment to tariffs, but the president didn't announce new policy, and market reaction to the speech was muted. U.S. futures nudged higher, looking set to extend a tech-driven rebound Tuesday that helped push stocks in Asia and Europe higher. Whether that recovery continues will depend in part on earnings announced after the close by Nvidia, the world's largest company by market capitalization.
Meanwhile, tensions between the U.S. and Iran remain an active concern for investors. Gold held above $5,200 a troy ounce and Brent crude oil edged above $70 a barrel ahead of talks between the two powers in Geneva on Thursday.
--U.S. futures were mixed during Trump's address to Congress, during which the president said tariffs are here to stay despite the Supreme Court's ruling, and that countries want to stick with their original trade deals regardless.
By early morning European trade, U.S. equity futures broadly nudged higher. The tech-heavy Nasdaq was up 0.15% ahead of Nvidia's earnings premarket, while the S&P 500 edged 0.1% higher. Futures tied to the Dow Jones Industrial Average were flat.
Nvidia and Paramount report earnings after the New York market close.
--Asian markets rebounded Wednesday, tracking U.S. indexes' gains overnight. Japan's Nikkei Stock Average closed 2.2% higher, recording yet another fresh closing high as metal- and tech-related names gained. South Korea's Kospi ended 1.9% higher after breaking above the 6000 level for the first time, powered again by chipmakers and auto stocks. China indexes finished in the green too, with the Shanghai Composite Index up 0.7% and the tech-heavy ChiNext index adding 1.4%.
Chinese property stocks shone in Hong Kong after Shanghai eased home-buying curbs--a likely sign that other major cities will follow suit as Beijing looks to roll out some policies ahead of the National People's Congress meeting. Hong Kong was mixed, with the HSI index up 0.4% but the gauge of tech counters down 0.3%.
--European indexes rode a boost in market sentiment at the opening bell. Positive earnings for financials HSBC and St. James's Place saw the pair rise 5.5% and 4.5%, respectively, helping the FTSE 100 to gain 0.8%. Banks recovering from declines Tuesday helped push the Italian FTSE MIB up 0.7%, while the same dynamic nudged the IBEX 35 up 0.5% in Madrid. Construction group Acciona--up 3.5%--led the Spanish index. Energy stocks and banks lifted the DAX 0.2%--Siemens Energy gained 2.5% while Commerzbank climbed 2.25%--while Societe Generale led the CAC 40 up 0.3%, even as Pernod Ricard dropped 3.6%.
--The dollar edged lower against a basket of currencies as a recovery in risk sentiment drove investors away from safe-haven assets. The DXY dollar index fell 0.2% to 97.692.
The yen softened after Prime Minister Takaichi's Bank of Japan board picks suggested a more dovish leaning for the central bank, though the overall board mix is likely to stay much the same.
Risk-sensitive currencies, including the Norwegian krone, Australian dollar and New Zealand dollar, could fall if Nvidia's earnings later miss expectations, ING's Francesco Pesole said in a note.
--U.S. Treasury yields traded slightly higher, with the curve steepening modestly in Asian trade. Moves were muted following President Trump's speech. The two-year Treasury yield rose 0.7 basis points to 3.461% and the 10-year yield was up 1.3 bps 4.045%, according to Tradeweb.
German Bunds and other eurozone government bonds should remain well supported amid geopolitical concerns, tariff uncertainty and a favorable flow pattern, Commerzbank's Rainer Guntermann said in a note. "While uncertainty over tariffs lingers on, Trump's latest comments add to the notion that he remains committed to finding ways to maintain broad-based tariffs on different legal grounds," the rates strategist said. German Bunds and eurozone bond yield spreads remained stuck in narrow ranges, but Bunds start "flirting" with 10-year yields below 2.7%, he said. The German Finance Agency will auction a combined 2 billion euros in May 2038- and May 2041-dated Bunds. The 10-year Bund yield rose 0.5 basis points to 2.713%.
--Bitcoin rose slightly, leading other cryptocurrencies higher, following a tech-driven recovery in U.S. equities overnight. Bitcoin rose 1.4% to $64,975 after hitting a two-and-a-half-week low of $62,646 Tuesday, LSEG data show. Ether rose 1.9% to $1,889 after reaching a two-and-a-half-week low of $1,806 Tuesday.
--Oil prices edged higher in early trading as markets remained highly sensitive to developments in the Middle East, continuing to factor in a sizable risk premium ahead of upcoming U.S.-Iran talks. Brent crude rose 0.3% to $70.79 a barrel, while WTI was up 0.3% to $65.59 a barrel, after both benchmarks settled lower in the previous session. "Oil prices weakened yesterday amid hopes that the U.S. and Iran will find a diplomatic solution to their standoff," ING analysts said. "However, the build-up of U.S. military assets in the Middle East means the risk of action remains very real." In his State of the Union address, President Trump said he would prefer a diplomatic resolution to the crisis with Iran, but made clear he would never allow Tehran to obtain a nuclear weapon.
--Gold prices rose back above $5,200, as uncertainty over U.S. trade policy and geopolitical risks in the Middle East continue to support safe-haven demand. In early trading, futures in New York are up 0.7% to $5,212.10 a troy ounce. "Gold has stabilized above $5,000/oz, regaining more than half of the losses from its sharp correction earlier this month," said Soojin Kim from MUFG. "However, expectations that U.S. interest rates may remain elevated for longer following stronger labour market data and cautious signals from Fed officials, could limit further upside for non-yielding gold." Meanwhile, silver futures gained 3.8%, climbing above $90 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
February 25, 2026 04:49 ET (09:49 GMT)
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