On February 12, 2025, global financial markets exhibited a cautious stance as investors awaited the release of U.S. inflation data. Federal Reserve Chair Jerome Powell, in his recent testimony to Congress, emphasized the current stability of the U.S. economy and indicated that existing monetary policies are appropriately calibrated to navigate prevailing uncertainties. The forthcoming Consumer Price Index (CPI) report is anticipated to confirm that core inflation remains slightly above 3%. Market participants are adopting a 'wait and see' approach, considering potential policy shifts, including trade tariffs and federal workforce adjustments. The S&P 500 index remained relatively unchanged, while the bond market experienced eased concerns, evidenced by strong demand for recent Treasury note issuances.

Asia Pacific Markets

In the Asia Pacific region, markets displayed mixed performances. Chinese and Hong Kong stocks faced downward pressure, influenced by ongoing trade tensions and a decline in car sales. The recent imposition of a 25% flat-rate tariff on steel and aluminum imports by the U.S. has notably impacted countries such as Canada, Brazil, and Mexico. This development led to gains in U.S. steelmakers' stocks, while their overseas counterparts experienced declines. Additionally, the artificial intelligence sector garnered significant attention, with companies like Nvidia and Broadcom at the forefront. Speculation surrounding potential acquisitions, including Elon Musk's interest in OpenAI, further fueled market discussions. Investors are closely monitoring Federal Reserve Chair Jerome Powell's upcoming testimony for insights into future monetary policy directions, especially in light of strong corporate earnings and positive economic indicators.

European Markets

European equities reached new record highs. The pan-European STOXX 600 index advanced by 0.2%, building upon its previous record close. Germany's DAX index also achieved an all-time peak. Investors are anticipating U.S. inflation data and its potential impact on Federal Reserve policy, as well as possible European Union responses to proposed U.S. tariffs on steel and aluminum imports. 
The EUR/USD currency pair is still trading within a range. A rise in volatility can be expected.

American Markets

In the United States, stock index futures remained subdued as investors awaited the data release. The CPI data is expected to show a 0.3% month-on-month rise, with annual headline inflation steady at 2.9%. Core inflation, excluding food and energy, is anticipated to increase by 0.3% monthly and decrease to 3.1% annually. Federal Reserve Chair Jerome Powell, in his testimony to Congress, refrained from commenting on the impact of recent tariff policies but emphasized that the U.S. economy remains strong. Market volatility is expected due to a combination of tariffs, inflation data, and Powell's testimony.