Market Analysis Summary - February 23, 2026
The trading week commenced on a risk-off note, primarily driven by political developments. Over the weekend, former President Donald Trump announced a significant increase in global tariffs from 10% to 15%. This decision has injected further uncertainty into an already delicate trade environment, exacerbating existing legal and political disputes surrounding tariff policies.
Market Reactions
Equity futures opened lower, indicating a bearish sentiment in the market. The prevailing tone suggests that unless there is a reversal in news headlines, the market may continue to face downward pressure. Notably, the trading day is devoid of major economic data releases, leading to a focus on risk repricing rather than macroeconomic indicators.
Foreign Exchange (FX) Market
In the FX market, traditional safe-haven currencies such as the Japanese yen and Swiss franc have strengthened, while risk-sensitive currencies like the Australian and Canadian dollars have weakened. The British pound is also under pressure. Interestingly, the US dollar is not acting as a typical safe haven in this scenario, trading softer due to the domestic implications of the tariff increase.
Commodity Market Divergence
Commodity markets are displaying a mixed response. Oil prices have opened lower, creating a bearish gap despite ongoing geopolitical tensions between the United States and Iran. This decline is attributed more to risk aversion and concerns about economic growth rather than supply issues.
Conversely, precious metals are experiencing gains amid the uncertainty. Gold and silver prices are rising, with silver up approximately 5% at the start of the week. Gold is trading at its highest levels for February, while silver is nearing monthly highs, indicating a strong technical position. Copper prices are also firm, suggesting a demand for hard assets despite the weakness in equity markets.
Outlook
With no significant macroeconomic releases scheduled for the day, market direction is likely to remain influenced by headlines related to tariffs and geopolitical tensions. The absence of fresh economic data may lead to continued volatility as traders adjust their positions in response to the evolving global trade landscape.