Global Markets Await Trump’s Middle East Decision Amidst Improving Eurozone Data
European stock markets are exhibiting cautious optimism as investors await a decision from U.S. President Donald Trump regarding potential military action in the Middle East. The anticipation follows Trump’s announcement that he will decide within the next ten to fourteen days whether to authorize an attack on Iran if a nuclear agreement cannot be reached . Meanwhile, positive economic data from the Eurozone is providing some support to market sentiment.
Eurozone Economic Data Shows Improvement
February’s Purchasing Managers’ Index (PMI) data indicates an improving Eurozone economy. The Manufacturing PMI Index rose to 50.8 points, up from 49.5 points the previous month, signaling expanding activity . The Composite Index also improved, reaching 51.9 in February, compared to 51.3 in January. S&P Global noted that the growth rate of the Eurozone economy reached its highest level in the last three months, with a particularly strong performance in the manufacturing sector, where production saw the fastest rise since August of the previous year .
German Producer Prices Decline
In Germany, producer prices decreased by 0.6% on a monthly basis and by 3% year-over-year in January .
U.S. Economic Data and Market Performance
U.S. Markets closed lower on Thursday, with the Dow Jones Industrial Average down 0.54%, the S&P 500 down 0.28%, and the Nasdaq Composite down 0.31%. Analysts are scrutinizing data related to the U.S. Deficit, which decreased by only 0.2% from 2024, marking the third-worst data point in history. This suggests that President Trump’s tariffs have not yet achieved their intended effects . Key U.S. Inflation data, specifically the Personal Consumption Expenditures (PCE) index, is due to be released today and will be closely watched by the Federal Reserve.
Corporate News
Walmart, the world’s largest retailer, released data and guidance for the current year that were considered disappointing . However, its stock is currently rising in after-market trading. In Milan, Moncler is performing well following the release of its 2025 results, which exceeded expectations. Unipol is also experiencing gains due to higher-than-expected 2025 numbers. The banking sector is generally positive, with Mediobanca, BPM Bank, MPS Banking, and Banca Popolare dell’Emilia Romagna all showing gains.
Commodity and Currency Markets
Oil prices are weak, influenced by the negative trend in crude oil amid Middle East tensions and negotiations between the U.S. And Iran. WTI crude oil (March delivery) is down 0.1% at $66.35 per barrel, while Brent crude (April contract) is trading at $71.61 . Natural gas prices in Amsterdam are up 1.18% at €33.9 per megawatt-hour. Gold and silver are also rising, with spot contracts at $2,015/ounce (+0.3%) and $78.9/ounce (+0.64%), respectively. The euro is trading at $1.0758, while Bitcoin is recovering at $67,229 (+0.44%).
Asian Market Performance
Asian stock markets are mixed, with concerns about the risks of artificial intelligence and the potential conflict between the United States and Iran weighing on indices. The Tokyo Stock Exchange closed lower, with the Nikkei falling 1.12% to 38,787.42. The yen has weakened to 155.10 against the dollar and 182.30 against the euro. Shares of major banks and financial institutions declined due to concerns about private credit companies exposed to the risks posed by artificial intelligence.
Trump’s Board of Peace
President Trump has convened a “Board of Peace” to address the situation in Gaza and potentially replace the role of the United Nations. The inaugural meeting was held in Washington D.C. With approximately 20 nations participating, primarily from the Middle East and Asia . Italy is participating as an observer, with Foreign Minister Antonio Tajani in attendance . The Board has secured $5 billion in financial commitments .