Market Summary - February 27, 2026

On February 27, 2026, Asian markets exhibited a cautious tone, influenced by Nvidia's strong earnings which were met with skepticism regarding tech valuations. The FTSE 100 index reached fresh highs, while the STOXX 600 was on track for its eighth consecutive month of gains.

Asian Market Overview

Asian markets showed mixed results, with the Nikkei posting a slight gain of 0.22%, while the CSI300 and Kospi indices fell by 0.34% and 0.6%, respectively. The overall sentiment was cautious, as investors shifted towards safer assets like the Japanese yen and US Treasuries amidst geopolitical tensions and concerns over high technology valuations.

German Import Prices

Germany reported a significant annual decline in import prices of 2.3%, primarily driven by a 21.1% drop in energy costs. Despite this, there was a 1.1% increase in import prices in January, indicating a potential shift in momentum. Agricultural products also saw a notable decline, while intermediate goods prices rose significantly due to increases in precious and non-ferrous metals.

European Market Performance

European equity markets remained stable, with the STOXX 600 index rising 0.1% to 634.16 points, nearing record levels. Strong corporate earnings from companies like HSBC and Nestle supported this upward trend, despite concerns over potential disruptions from AI and new US tariffs. However, Delivery Hero's shares fell by 5.2% due to disappointing performance metrics.

Currency and Commodity Insights

The US dollar was poised for its first monthly gain since October, driven by a flight to safety amid geopolitical tensions. The Australian dollar also performed well, supported by a robust economy. In commodities, oil prices rose due to concerns over US-Iran nuclear talks, with Brent crude increasing by 1.6% to $71.88 per barrel. Gold prices remained high, closing at $5,181.18 per ounce, reflecting a 58% increase over the past seven months.

Economic Outlook

Looking ahead, the US economic calendar is expected to release the Producer Price Index (PPI) report, with projections indicating a 0.3% month-on-month rise. However, significant market volatility is not anticipated unless the data deviates from expectations. Additionally, geopolitical tensions, particularly regarding Iran, could lead to market fluctuations over the weekend.

Technical Analysis

The FTSE 100 index continues to show strength, holding above the 100-day moving average. Immediate support is noted at 10,825, with resistance at 10,911. A close below 10,662 could prompt a reevaluation of the bullish outlook.