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Major stock markets mostly rose Thursday on hopes for an end to the war in Ukraine and as US President Trump announced a trade policy shake-up but held off on specific new levies. London was a rare faller owing to sharp losses to share prices of big companies, including Unilever, Barclays and British American Tobacco, on mixed earnings. That overshadowed news that the UK economy surprisingly grew in late 2024.US President Donald Trump’s talks with Russian leader Vladimir Putin to start negotiating an end to the war in Ukraine “has fostered a risk-on attitude among investors”, said Naeem Aslam, chief investment officer at Zaye Capital Markets.The positive showing “is a result of the potential reduction in geopolitical risks”, he added.Paris and Frankfurt won solid gains. Major US indices joined them, with the S&P 500 winning one percent.Trump unveiled a “fair and reciprocal plan” for trade, ordering a review of tariffs on US goods and directing officials to propose remedies, a step towards potentially wide-ranging tariffs on allies and competitors.But Wall Street was encouraged that the plan did not include immediate levies.Investors are “taking comfort” in the “idea that it’s negotiable and not coming into effect immediately,” said Tom Cahill of Ventura Wealth Management.US investors also shrugged off data showing a bigger than expected uptick in US wholesale prices in January, adding to concerns about worsening pricing pressure after Wednesday’s consumer price data also exceeded estimates. Some analysts also noted that the details of Thursday’s US inflation report were less troubling than the headline figures.But the dollar weakened after traders concluded the reciprocal tariffs will “either be tolerable for partners, negotiated away or never implemented,” said Adam Button, currency analyst at ForexLive.Among individual stocks, Nestle surged more than six percent in Zurich after the Swiss food giant posted better-than-expected annual sales.But Deere & Company fell 2.2 percent as it navigates a tough agriculture market with the depressed state of farm income and higher interest rates that make equipment purchases difficult.The company’s revenues fell more than 30 percent last year, while it projected broad-based decline again in 2025.- Key figures around 2150 GMT -New York – Dow: UP 0.8 percent at 44,711.43 (close)New York – S&P 500: UP 1.0 percent at 6,115.07 (close)New York – Nasdaq Composite: UP 1.5 percent at 19,945.64 (close)London – FTSE 100: DOWN 0.5 percent at 8,764.72 (close) Paris – CAC 40: UP 1.5 percent at 8,164.11 (close)Frankfurt – DAX: UP 2.1 percent at 22,612.02 (close)Tokyo – Nikkei 225: UP 1.3 percent at 39,461.47 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,814.37 (close)Shanghai – Composite: DOWN 0.4 percent at 3,332.48 (close)Euro/dollar: UP at $1.0467 from $1.0383 on WednesdayPound/dollar: UP at $1.2586 from $1.2446Dollar/yen: DOWN at 152.76 yen from 154.42 yenEuro/pound: DOWN at 83.28 pence from 83.42 penceWest Texas Intermediate: DOWN 0.1 percent at $71.29 per barrelBrent North Sea Crude: DOWN 0.2 percent at $75.02 per barrelburs-jmb

Major stock markets mostly rallied and oil prices retreated Thursday on hopes for an end to the war in Ukraine and despite fresh tariff threats.London was a rare faller owing to sharp losses to share prices of big companies, including Unilever, Barclays and British American Tobacco, on mixed earnings. That overshadowed news that the UK economy surprisingly grew in late 2024.US President Donald Trump’s talks with Russian leader Vladimir Putin to start negotiating an end to the war in Ukraine “has fostered a risk-on attitude among investors”, said Naeem Aslam, chief investment officer at Zaye Capital Markets.The positive showing “is a result of the potential reduction in geopolitical risks”, he added.With Russia a major producer of oil, crude futures fell heavily on easing supply concerns, while the dollar lost some of its safe-haven support.The development surrounding Ukraine helped ease fears over high US inflation — a situation that risks worsening because of Trump’s tariffs according to analysts.”Tariffs and inflation remain the only two themes that investors care about,” said Chris Beauchamp, chief market analyst at online trading platform IG.”Despite stronger CPI and PPI readings, stocks have avoided a selloff, with US markets demonstrating remarkable resilience,” he added.- Nestle surge -Data released Wednesday showed annual consumer inflation (CPI) rose to three percent in January, while wholesale inflation data (PPI) also came in hotter than expected.The data dealt a blow to hopes that the US Federal Reserve would continue to lower rates this year, having cut three times in 2024, with traders now pricing in just one.The figures came after Fed chief Jerome Powell on Tuesday warned that policymakers were in no hurry to loosen monetary policy further.”In our view, the bottom line is clear: the Fed has no reason to cut further. Inflation seems to be stuck above target,” wrote analysts at BoA Global Research.Meanwhile, Trump’s announcing he plans to unveil further tariffs Thursday failed to spook markets, with IG’s Beauchamp noting they won’t go into force until the beginning of April.”Investors have been strengthened in their belief that the tough talk on this front is more of a negotiating tactic,” he said.Among individual stocks, Nestle surged more than six percent in Zurich after the Swiss food giant posted better-than-expected annual sales.- Key figures around 1630 GMT -New York – Dow: UP 0.4 percent at 44,529.33 pointsNew York – S&P 500: UP 0.6 percent at 6,089.57 New York – Nasdaq Composite: UP 1.0 percent at 19,851.00London – FTSE 100: DOWN 0.5 percent at 8,764.72 (close) Paris – CAC 40: UP 1.5 percent at 8,164.11 (close)Frankfurt – DAX: UP 2.1 percent at 22,612.02 (close)Tokyo – Nikkei 225: UP 1.3 percent at 39,461.47 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,814.37 (close)Shanghai – Composite: DOWN 0.4 percent at 3,332.48 (close)Euro/dollar: UP at $1.0443 from $1.0387 on WednesdayPound/dollar: UP at $1.2537 from $1.2446Dollar/yen: DOWN at 153.03 yen from 154.39 yenEuro/pound: DOWN at 83.31 pence from 83.40 penceWest Texas Intermediate: DOWN 0.4 percent at $71.06 per barrelBrent North Sea Crude: DOWN 0.6 percent at $74.76 per barrelburs-rl/jj

Honda and Nissan on Thursday announced the scrapping of merger talks that would have created the world’s third-biggest auto company by unit sales behind Toyota and Volkswagen.Here are some key points about why the Japanese companies explored a tie-up, the reasons for their failure, and where this leaves them in a difficult global auto industry.- What is their history? -Honda was founded in 1948 as a small factory making motorcycles and is now the world’s biggest producer of the two-wheelers. It also makes 3.7 million four-wheel vehicles annually. More than 40 percent of these were sold in North America last year, roughly 20 percent in China, 18 percent in Japan and three percent in Europe.Nissan, founded in 1933, produced 3.1 million cars last year. North America accounts for 38 percent of its global sales, China 20 percent, Japan 14 percent and Europe 10 percent.French automaker Renault took a 36.8 percent stake in the then loss-making firm in 1999 and Mitsubishi Motors joined the alliance 17 years later, with Nissan taking a 34-percent stake in its struggling Japanese rival.But tensions emerged, stoked by the French state increasing its stake in Renault in 2015, followed by the 2018 arrest of Nissan boss Carlos Ghosn in Japan on suspicion of financial misconduct and his subsequent flight from the country.In 2023, Renault sold part of its stake in Nissan as part of an alliance overhaul that saw them retain 15 percent cross-holdings.- Why did they try to merge? -Nissan has been struggling, last year reporting a 93-percent plunge in first-half net profit and axeing 9,000 jobs in November. It is also saddled with billions of dollars of debt.For both companies, achieving economies of scale would have served to “enhance R&D capabilities, and better compete” in the areas of “advanced technologies including electrification and software-defined vehicles”, said Tatsuo Yoshida, senior auto analyst at Bloomberg Intelligence.Japanese carmakers have long lagged in the electric vehicle sector, especially against Chinese firms, with the country’s leading EV-maker BYD last year selling more vehicles globally than Honda and Nissan.The pair had already agreed on talks over partnership in electrification technologies and software development, and were later joined by Mitsubishi Motors.- Why did merger talks fail? -When the merger talks were announced in December the plan was that the two automakers along with Mitsubishi Motors would integrate their businesses under a new holding company.But local media reports have said Honda, frustrated by its rival’s slow decision-making on restructuring, wanted to make it a subsidiary, which Nissan’s leadership found unacceptable.”Nissan appears to be stressing its independence and freedom of (decision-making on) its strategy,” which “for Honda’s eyes may not maximise benefit of economy of scale,” Mizuho Securities analyst Yoshitaka Ishiyama said.- What happens next? -In the long term at least, both firms will need to seek alternative partners as they look to get a leg-up in the technology race, analysts say.”For Honda, there remains a concern about how to beef up its four-wheel vehicle business,” said Seiji Sugiura, auto analyst at Tokai Tokyo Intelligence Laboratory.”The fact that Honda executives had wanted to merge with Nissan means that they needed a close collaboration in R&D at a deeper level than an alliance, (which) involves sharing confidential company information,” he added.Nissan’s position is worse, as it “faces significant challenges, including financial instability and the need to strengthen its position in the advanced technology battlefield”, said Bloomberg’s Yoshida. Sugiura added that tech firm Foxconn “remains to be an option for Nissan”.Recent reports have said the Taiwanese giant, also known as Hon Hai, had been in talks with Renault over buying the French automaker’s stake in the Japanese firm.However, Sugiura added that a Foxconn-Honda tie-up was also possible “as it has technologies Honda wants”.And he added: “If Honda really wants Nissan’s technology, it can launch a hostile takeover bid of Nissan.”

Japanese auto giants Honda and Nissan confirmed on Thursday they had scrapped merger talks that would have created the world’s third-largest automaker by unit sales.The bid to join forces had been seen as an effort to catch up with US titan Tesla and Chinese firms in the electric vehicle market, as well as providing a lifeline to struggling Nissan.The firms said in a joint statement that they “agreed to terminate the MOU (memorandum of understanding) signed on December 23 last year for consideration of a business integration between the two companies”.”That the both companies were not able to reach an agreement is very regrettable,” Honda’s CEO and president Toshihiro Mibe told reporters.Mibe insisted in December that any merger would not be a bailout for Nissan, which announced last year thousands of job cuts after reporting a 93 percent plunge in first-half net profit.Further illustrating its problems, Nissan said on Thursday that it was now expecting an annual loss of $518 million owing to slumping sales.Japanese media reports have said the discussions unravelled after Honda proposed making its struggling rival a subsidiary instead of the plan, announced in December, to integrate under a new holding company.The automakers confirmed in the joint statement that Honda “proposed changing the structure from establishing a joint holding company… to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange”.Under a joint board, “the decision-making speed may slow when a tough decision is required,” Mibe said.Nissan’s CEO Makoto Uchida said “given the performance of the company, there is a difficulty to stand alone” and Honda’s proposal was “carefully discussed”.But, he said, “We could not accept this proposal as we were not sure how much our autonomy would be kept and if Nissan’s potential would be maximised” under the proposal.- Partnership -The automakers, however, will continue to seek “synergy effects” through a strategic partnership announced in August last year that also includes Nissan’s junior partner Mitsubishi Motors, Mibe said.Within the partnership agreement, the companies will collaborate to thrive in “the era of intelligence and electrified vehicles, striving to create new value and maximise the corporate value of both companies”, the joint statement said.The cancellation of the merger talks would have no impact on the earnings of both automakers, it said.Following the announcement, French automaker Renault, which holds about 35 percent of shares in Nissan, said it welcomed “Nissan’s intention to focus first and foremost on the execution of its turnaround plan”.It said it would “continue to support Nissan in its ongoing projects.”The head of Taiwanese tech giant Foxconn said this week it was open to buying Renault’s stake in Nissan after reports last year said it had made an approach for the company.Analysts have said both firms will need to seek alternative partners in the long term, to strengthen competitiveness in the technology race, and Foxconn could be an option.- Nissan loss -Nissan said Thursday it expected a net loss of 80 billion yen ($520 million) for the 12 months to March, sharply down from 426.6 billion yen profit achieved in the previous year.Honda separately reported a net profit of 805.3 billion yen for the nine months to December.This was a 7.4 percent decline on-year chiefly due to a decline in sales in China, even though overall sales increased 8.9 percent to 16.3 trillion yen.Honda made a slight change in its sales forecast for the full year to March, to 21.6 trillion yen from 21.0 trillion yen in the previous estimate, but kept its operating and net profit forecasts at 1.42 trillion yen and 950 billion yen, respectively.

China began construction last year on projects with the greatest combined coal power capacity since 2015, jeopardising its goal to peak carbon emissions by 2030, according to a report published on Thursday.The world’s second-largest economy is the biggest emitter of the greenhouse gases that drive climate change but is also a renewable energy powerhouse. It plans to reach net zero by 2060.Coal has been a pivotal energy source in China for decades but explosive growth in wind and solar installations in recent years has raised hopes that the country can wean itself off the dirty fossil fuel.However, according to a report from the Finland-based Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) in the United States, China began construction on 94.5 gigawatts of coal power projects in 2024 — 93 percent of the global total. Although China also added a record 356 gigawatts of wind and solar capacity — 4.5 times the European Union’s additions — the uptick in coal power risks solidifying its role in its energy mix, the report said.”China’s rapid expansion of renewable energy has the potential to reshape its power system, but this opportunity is being undermined by the simultaneous large-scale expansion of coal power,” said Qi Qin, lead author of the report and China analyst at CREA. The rise comes despite a pledge by Chinese President Xi Jinping in 2021 to “strictly control” coal power projects and increases in coal consumption before “phasing it down” between 2026 and 2030.Coal production has risen steadily in recent years, from 3.9 billion tons in 2020 to 4.8 billion tons in 2024.”Without urgent policy shifts, China risks reinforcing a pattern of energy addition rather than transition, limiting the full potential of its clean energy boom,” the report said.- Coal prioritised -New permits for coal power projects fell 83 percent in the first half of 2024, prompting optimism that China’s clean energy transition was gathering pace.In November, a survey of experts by CREA and the Australian think tank International Society for Energy Transition Studies (ISETS) found 52 percent thought China’s coal consumption would peak in 2025.But coal power remained high in the latter months of 2024 despite China adding enough power from clean energy sources to cover its growth in electricity demand.That suggested coal power was being prioritised over renewable sources in some regions, the report said.”Chinese coal power and mining companies are sponsoring and building new coal plants beyond what is needed,” said Christine Shearer, research analyst at GEM.”The continued pursuit of coal is crowding out the country’s use of lower-cost clean energy.”Analyst David Fishman agreed with much of the report but said he was “more optimistic” that coal would be phased out in the coming years.The surge in coal power late last year may be “a short-term symptom of a market transitioning to true economic offtake… and not a sign of a system designed to benefit coal generators”, Fishman, senior manager at the Lantau Group, told AFP.- New targets -China is due to announce details of its 15th Five-Year Plan — for 2026 to 2030 — in the coming months, likely including updated emissions and energy goals.This month it was also due to submit new emissions targets, known as Nationally Determined Contributions (NDCs), under the 2015 Paris Agreement.Only a handful of countries have submitted new NDCs so far.China should “establish a total cap on coal-fired power generation” and formulate “a clear timetable for phasing out coal power”, Gao Yuhe, Beijing-based project lead at Greenpeace East Asia, told AFP.”The 2030 target for installed renewable energy capacity should be raised to expedite the replacement of coal power with renewable energy, aiming to achieve peak carbon emissions in the power sector before 2025,” she said.

Japanese entertainment and electronics giant Sony upgraded its annual net profit forecast to $7.0 billion on Thursday thanks to its strong gaming business.The conglomerate said it now expects a net profit of 1.08 trillion yen in the year ending March 31, compared with an earlier projection of 980 billion yen.It also lifted its annual sales forecast to 13.2 trillion yen, from an earlier estimate of 12.7 trillion yen. The change came after Sony saw robust sales of its games, music and financial products in October-December, a key holiday shopping season, with the yen’s weakness against the dollar and euro also providing a boost.Sales reached 4.41 trillion yen in the quarter, up 18 percent on-year, giving a net profit of 373.7 billion yen, which was an increase of three percent.The firm also announced a share buyback worth up to 50 billion yen. During the three months, Sony sold 9.5 million of its PlayStation5 consoles, a healthy jump from the 8.2 million units sold in the same period the year before.Chief operating officer Hiroki Totoki, who is set to take over as chief executive officer in April, said the game business will see more strong titles in the next fiscal year as the segment continues to see active user numbers rise.”We saw a kind of momentum that went beyond our expectations,” he told a news conference.”During the third quarter, we saw high-quality third-party (game) soft titles, which created synergy effects” and drove up overall sales in the game business, he said.He added that the segment may see a drop during the three months to the end of March. “In the next fiscal year (from April), we plan to introduce strong titles… and should see even stronger momentum in that year,” he said. “I have high hopes.”Sony said its music business also enjoyed surging sales, thanks to “higher revenues from streaming services”.Music streaming is a key money-spinner for Sony, which has an impressive back catalogue and whose current roster includes major artists such as Beyonce.The firm is expanding its content businesses and in December paid $320 million for 10 percent of Kadokawa, a Japanese media conglomerate behind the smash-hit game “Elden Ring”, making it the firm’s biggest shareholder.The deal expanded Sony’s games and anime portfolio, after its 2021 purchase of Crunchyroll, a once semi-legal US-based sharing site that is now a streaming giant for Japanese anime.

Asian markets mostly rose Thursday and oil prices extended losses as forecast-topping US inflation was overshadowed by hopes for an end to the Ukraine war after news Donald Trump and Russia’s Vladimir Putin had discussed peace talks.The US president said he expected to meet his Russian counterpart in Saudi Arabia “in the not too distant future” to find a route to ending the three-year conflict, which has fanned geopolitical fears and energy costs.Trump said the two had held a “lengthy and highly productive” telephone conversation and added that he expected they would visit each other’s countries.The Kremlin said the call lasted nearly one-and-a-half hours and the leaders had agreed that the “time has come to work together”.Ukrainian President Volodymyr Zelensky said he had a “meaningful conversation” with Trump and that the leaders discussed ways to end the war.News of the apparent thaw between the nuclear-armed powers provided a boost to risk appetite, with the euro and pound both rallying against the dollar. Oil prices fell again Thursday, having shed more than two percent on Wednesday.”If this push for peace gains traction, expect an even bigger unwind in war-premium assets and a fresh bid for riskier plays,” said Stephen Innes at SPI Asset Management.Tokyo climbed more than one percent on a weaker yen, while Sydney, Seoul, Taipei, Mumbai, Bangkok and Manila were also higher.However, Hong Kong reversed early advances to end in negative territory following a recent AI-led rally, with losses also seen in Shanghai, Wellington and Jakarta. Singapore was flat.London, which ended at a record high for the third straight day Wednesday, fell even as data showed the UK economy expanded 0.1 percent in the final three months of 2024, beating forecasts for a contraction.Paris and Frankfurt were both up in early trade. The gains came despite losses on Wall Street where investors were jolted by data on Wednesday showing consumer prices rose three percent last month, above expectations and faster than December.Core prices, excluding food and energy, also came in hotter than estimates.The readings dealt a blow to hopes that the Fed would continue to lower rates this year, having cut three times in 2024, with traders now pricing in just one, according to Bloomberg.The figures came a day after bank chief Jerome Powell warned that policymakers were in no hurry to loosen monetary policy further, remarks echoed by other officials.”In our view, the bottom line is clear: the Fed has no reason to cut further. Inflation seems to be stuck above target,” analysts at BoA Global Research said in a note.”The bar for hikes is still high, but they should be part of the conversation after today’s data.”Soon after the data was released, Trump hit out at predecessor Joe Biden for fanning prices.He also called for rates to be lowered, adding they would “go hand in hand” with his plans to impose tariffs on major US trading partners — despite many economists arguing that both measures would boost inflation. – Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 1.3 percent at 39,461.47 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,814.37 (close)Shanghai – Composite: DOWN 0.4 percent at 3,332.48 (close)London – FTSE 100: DOWN 0.3 percent at 8,778.31Euro/dollar: UP at $1.0419 from $1.0387 on WednesdayPound/dollar: UP at $1.2496 from $1.2446Dollar/yen: DOWN at 154.30 yen from 154.39 yenEuro/pound: DOWN at 83.38 pence from 83.40 penceWest Texas Intermediate: DOWN 0.8 percent at $70.80 per barrelBrent North Sea Crude: DOWN 0.8 percent at $74.61 per barrelNew York – Dow: DOWN 0.5 percent at 44,368.56 (close)

China last year began construction on projects with the greatest combined coal power capacity since 2015, jeopardising the country’s goal to peak carbon emissions by 2030, according to a report published Thursday.The world’s second-largest economy is the biggest emitter of the greenhouse gases that drive climate change, but also a renewable energy powerhouse. It plans to reach net zero by 2060.While coal has been a pivotal energy source in China for decades, explosive growth in wind and solar installations in recent years has raised hopes that the country can wean itself off the dirty fossil fuel.But according to a report from the Finland-based Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) in the United States, China began construction on 94.5 gigawatts of coal power projects in 2024 — 93 percent of the global total. Although the country also added a record 356 gigawatts of wind and solar capacity — 4.5 times the European Union’s additions — the uptick in coal power risks solidifying its role in China’s energy mix, the report said.”China’s rapid expansion of renewable energy has the potential to reshape its power system, but this opportunity is being undermined by the simultaneous large-scale expansion of coal power,” said Qi Qin, lead author of the report and China analyst at CREA. The rise comes despite a pledge by Chinese President Xi Jinping in 2021 to “strictly control” coal power projects and increases in coal consumption before “phasing it down” between 2026 and 2030.Coal production has risen steadily in recent years, from 3.9 billion tons in 2020 to 4.8 billion tons in 2024.”Without urgent policy shifts, China risks reinforcing a pattern of energy addition rather than transition, limiting the full potential of its clean energy boom,” the report said.- Coal prioritised -New permits for coal power projects fell 83 percent in the first half of 2024, prompting optimism that China’s clean energy transition was gathering pace.In November, a survey of experts by CREA and the Australian think tank International Society for Energy Transition Studies (ISETS) found 52 percent thought China’s coal consumption would peak in 2025.But coal power surged in the latter months of 2024, despite the country adding enough power from clean energy sources to cover its growth in electricity demand.That suggested coal power was being prioritised over renewable sources in some regions, the report said.”Chinese coal power and mining companies are sponsoring and building new coal plants beyond what is needed,” said Christine Shearer, research analyst at GEM.”The continued pursuit of coal is crowding out the country’s use of lower-cost clean energy.”China is due to announce details of its 15th Five-Year Plan — for 2026 to 2030 — in the coming months, likely including updated emissions and energy goals.This month it was also due to submit new emissions targets, known as Nationally Determined Contributions (NDCs), under the 2015 Paris Agreement.So far only a handful of countries have submitted new NDCs.In October, CREA urged China to set a “strong but achievable” target of slashing emissions by at least 30 percent by 2035.

Wall Street stocks mostly fell Wednesday after US inflation data exceeded expectations, while the euro strengthened on signs Russia and Ukraine could be closer to a peace agreement.Major US indices began the day firmly in the red after January US consumer price index data showed inflation grew, raising questions about whether the Federal Reserve’s progress on bringing down prices was reversing.While both the Dow and S&P 500 dropped, they finished well above session lows. The Nasdaq mustered a small gain.”Equities were a lot more resilient than I would have expected given the news we had this morning,” said Jack Ablin of Cresset Capital.Still, US Treasury yields advanced, a sign investors see lower odds for Fed interest rate cuts.”Investors were looking for reassurance in this morning’s inflation report — and they didn’t get it,” said Bret Kenwell, US investment analyst at the trading platform eToro.He said the “higher-than-expected print further lowers the odds of rate cuts from the Fed this year and stokes investors’ reflationary fears.”Analysts warn that US President Donald Trump’s tariffs — and plans to slash taxes, regulations and immigration — risked reigniting inflation.”What makes today’s rise in CPI inflation data so precarious is that many believe this is just the beginning, as tariffs could push inflation even higher,” said Jochen Stanzl, chief market analyst at financial services firm CMC Markets.The dollar initially strengthened after the inflation report, but weakened later against the euro following news that Trump held talks with Russian President Vladimir Putin about immediately starting Ukraine peace talks.Later Wednesday, Ukrainian President Volodymyr Zelensky said he had had a “meaningful conversation” with Trump and that the leaders discussed ways to end Russia’s nearly three-year invasion of Ukraine.However, crude oil prices finished down more than two percent due in part to expectations for increased Russian oil output.- Heineken fizzes -In Asian markets, Hong Kong led gains thanks to another tech rally. In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as positive company earnings. Shares in Dutch brewer Heineken fizzed as traders cheered better-than-expected beer sales. The stock surged 14 percent, making it the biggest gainer on the Amsterdam market.But Chevron fell 1.6 percent after announcing it will cut 15 to 20 percent of its workforce as part of a reorganization to save money and to position the oil giant for the long-term.- Key figures around 2150 GMT -New York – Dow: DOWN 0.5 percent at 44,368.56 (close)New York – S&P 500: DOWN 0.3 percent at 6,051.97 (close)New York – Nasdaq: UP less than 0.1 points at 19,649.95 (close)London – FTSE 100: UP 0.3 percent at 8,807.44 (close)Paris – CAC 40: UP 0.2 percent at 8,042.19 (close)Frankfurt – DAX: UP 0.5 percent at 22,148.03 (close)Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)Euro/dollar: UP at $1.0387 from $1.0307 on TuesdayPound/dollar: UP at $1.2446 from $1.2368Dollar/yen: UP at 154.39 yen from 152.00 yenEuro/pound: UP at 83.40 pence from 83.33 penceWest Texas Intermediate: DOWN 2.7 percent at $71.37 per barrelBrent North Sea Crude: DOWN 2.4 percent at $75.18 per barrelburs-jmb/jgc

US stock markets tumbled on Wednesday as an inflation reading came in hotter than expected, fanning fears that the Federal Reserve will keep interest rates higher for longer. Following days of attention on US President Donald Trump’s tariff moves, traders were focusing on the January consumer inflation data, which is set to play a role in the Fed’s next interest rate decision.”Investors were looking for reassurance in this morning’s inflation report — and they didn’t get it,” said Bret Kenwell, US investment analyst at eToro trading platform.He said the “higher-than-expected print further lowers the odds of rate cuts from the Fed this year and stokes investors’ reflationary fears”.The consumer price index (CPI) edged up to 3.0 percent in January from a year ago, after hitting 2.9 percent in December, official data showed. Analysts had expected inflation to ease to 2.8 percent.Wall Street’s three main indexes opened sharply in the red following the data’s release and only barely recovered some ground in morning trading.US President Donald Trump, who made tackling inflation and the cost of living a priority during his election campaign, blamed his predecessor Joe Biden for the unexpected uptick.He also reiterated his call for the Fed to cut rates, saying on his Truth Social platform that it “would go hand in hand with upcoming Tariffs!!!”- ‘Market volatility’ -Fed boss Jerome Powell on Tuesday repeated that the US central bank was in no hurry to lower borrowing costs further.The Fed, whose inflation target is at two percent, kept rates unchanged last month after three consecutive cuts. At the end of 2024, Fed policymakers pared back the number of rate cuts they expect this year to two, some citing concerns about trade uncertainty following Trump’s election victory.Analysts warn that Trump’s tariffs — and plans to slash taxes, regulations and immigration — risked reigniting inflation.”What makes today’s rise in CPI inflation data so precarious is that many believe this is just the beginning, as tariffs could push inflation even higher,” said Jochen Stanzl, chief market analyst at financial services firm CMC Markets.”Market volatility is set for a perfect storm as the mix of higher inflation and the threat of tariffs serve to scare investors,” Stanzl said.”Given today’s inflation numbers, it is questionable whether the Fed will be able to deliver on its two rate cuts planned for 2025.” – Heineken fizzes -In Asian markets, Hong Kong led gains thanks to another tech rally. In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as positive company earnings. Shares in Dutch brewer Heineken fizzed as traders cheered better-than-expected beer sales. The stock surged 14 percent, making it the biggest gainer on the Amsterdam market.Oil prices slumped after data confirmed a large increase in US inventories. City Index and FOREX.com market analyst Fawad Razaqzada said an upward revision by the US Energy Information Agency to its US crude production forecast reinforced concerns about the market being oversupplied.There were worries too that trade tensions were weighing on sentiment, he added.”If trade conflicts escalate further, the prospect of slower economic expansion could weigh heavily on energy markets, adding another layer of uncertainty to crude oil forecast,” he said.- Key figures around 1630 GMT -New York – Dow: DOWN 0.9 percent at 44,180.71 pointsNew York – S&P 500: DOWN 0.7 percent at 6,025.74New York – Nasdaq: DOWN 0.5 points at 19,546.00London – FTSE 100: UP 0.3 percent at 8,807.44 (close)Paris – CAC 40: UP 0.2 percent at 8,042.19 (close)Frankfurt – DAX: UP 0.5 percent at 22,148.03 (close)Tokyo – Nikkei 225: UP 0.4 percent at 38,963.70 (close)Hong Kong – Hang Seng Index: UP 2.6 percent at 21,857.92 (close)Shanghai – Composite: UP 0.9 percent at 3,346.39 (close)Euro/dollar: UP at $1.0361 from $1.0360 on TuesdayPound/dollar: DOWN at $1.2412 from $1.2446Dollar/yen: UP at 154.77 yen from 152.45 yenEuro/pound: UP at 83.48 pence from 83.24 penceWest Texas Intermediate: DOWN 1.7 percent at $72.11 per barrelBrent North Sea Crude: DOWN 1.5 percent at $75.85 per barrelburs-rl/jj