February was a more tense month for global markets.
Geopolitical risks increased as tensions in Iran escalated following reports of a military strike. The situation added uncertainty and reminded investors how quickly global events can affect sentiment.
In the United States, the Supreme Court blocked the use of emergency powers for broad tariffs. Soon after, President Trump signaled that he is considering a 15% global tariff under different legal grounds. This keeps trade policy uncertain and adds potential inflation risks going forward.
In Europe, the ECB kept interest rates unchanged at 2.15%, choosing to wait for more data before making any moves.
Inflation data in the U.S. showed mixed signals. January CPI slowed to 2.4%, down from 2.7%, and Core CPI eased slightly to 2.5%. However, the Fed’s preferred measure, PCE, moved higher. PCE rose to 2.9% and Core PCE increased to 3.0%, showing that underlying inflation pressures are still present.
Overall, markets are balancing cooling headline inflation against persistent core pressures, while also navigating rising geopolitical and trade risks. In this environment, risk management remains important.
Looking ahead to March, new inflation data and both the Fed and ECB meetings will likely provide clearer direction for markets.
Staying patient and disciplined as we move further into 2026.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Wed Aug 12 2026 02:45:09 GMT+0000 (Coordinated Universal Time)
