This week, the financial markets witnessed significant movements as geopolitical tensions and monetary policy decisions shaped investor sentiment. The report, crafted by Swissquote Bank Ltd for informational purposes, highlights the new all-time highs (ATH) achieved by cybersecurity giants Crowdstrike, Fortinet, and Cloudflare. These gains were propelled largely by fresh developments in the tech sector and evolving market dynamics.
The European Central Bank (ECB) made headlines by cutting policy interest rates by 25 basis points for the fifth time, reflecting growing concerns about euro area growth amidst tariff threats. As a result, the EUR/USD dipped below 1.0400 during Friday's European session. Additionally, regional inflation data from Germany showed signs of cooling in January.
US President Donald Trump's renewed threats to impose 25% tariffs on Canada and Mexico further fueled market volatility. The currencies of both nations depreciated against the US dollar as traders digested these announcements. Trump's aggressive stance has also driven increased demand for safe-haven assets, with gold prices reaching a fresh ATH amid rising geopolitical tensions.
In the tech sector, Meta extended its upward trajectory, setting a new ATH following stronger-than-expected earnings results. Meanwhile, the ongoing chip and digital information conflict between China and the West entered a new phase, creating ripples across global markets.
Traders are now keenly awaiting the release of US Personal Consumption Expenditures (PCE) data, which could further influence market trends. The ECB's rate cut underscores its commitment to supporting economic growth, even as it navigates the challenges posed by external trade pressures.