Markets Today: FTSE 100 prints fresh highs as STOXX 600 nears record streak. US PPI data and US/Iran risk in focus

Ben Graham · 2026-02-27T11:09:00Z

Asian markets are tepid, with Nvidia's strong earnings met with a "priced-to-perfection" reaction, leading to caution over tech valuations.
FTSE 100 prints fresh highs and the STOXX 600 is set for its eighth consecutive month of gains
Oil and Gold prices surge as markets focus on US/Iran nuclear talks risk and the impact of new US tariffs
US PPI and Iran/US tensions now firmly in focus ahead of the weekend

Asia Market Wrap - Nikkei posts marginal gains amid caution

Most Read: Gold (XAU/USD) bulls eye acceptance above $5200/oz, can NVIDIA earnings impact haven demand?

Asian markets experienced a period of instability on Friday, characterized by a shift toward safer assets like the Japanese yen and US Treasuries.

This cautious sentiment was driven by growing skepticism over high technology valuations and escalating geopolitical tensions. Despite a strong earnings report from AI giant Nvidia, which beat expectations and provided a positive outlook, investors remained unimpressed.

This lackluster reception contributed to a decline in Wall Street performance, which subsequently spilled over into Asian markets.

The regional impact was widespread but varied:

China and South Korea: The CSI300 and Kospi both saw declines of 0.34% and 0.6%, respectively.
Japan: The Nikkei managed a marginal gain of 0.22%, even as broader regional indices stayed flat.

The tepid reaction to Nvidia’s success indicates a "priced-to-perfection" environment. Even though the company's performance was objectively strong, the market appears unwilling to push valuations higher, reflecting a broader hesitation to chase stocks at their current elevated levels.

German import prices remain low

Germany’s import prices saw a significant annual decline of 2.3%, maintaining the same rate of decrease seen in December and marking the sharpest drop since early 2024.

This downward trend was largely driven by a massive 21.1% plunge in energy costs, with crude oil, natural gas, and petroleum products all seeing double-digit price cuts. Even when removing volatile energy from the equation, import prices still edged down by 0.1%. Agricultural products also contributed to the decline, falling 6.5% as the costs for raw cocoa, live pigs, and grains cooled significantly compared to the previous year.

While consumer goods including both durable and non-durable items became roughly 2.7% cheaper to import, there was a notable spike in the cost of intermediate goods. These prices rose by 2.8%, fueled primarily by a dramatic 65.2% surge in the cost of precious metals and a 25.9% increase in non-ferrous metals.

Interestingly, while the year-over-year numbers show a decline, the monthly data suggests a shift in momentum; import prices actually climbed 1.1% in January alone, a much stronger rebound than the 0.6% increase analysts had anticipated.

European Session - European shares eye strong monthly close

European equity markets remained steady on Friday, positioning the pan-European STOXX 600 for its eighth consecutive month of growth, the longest winning streak for the benchmark since the 2012–2013 period.

Despite persistent anxieties surrounding potential AI-driven business disruptions and the impact of new global tariffs enacted by US President Donald Trump, investor sentiment was bolstered by a string of resilient corporate earnings.

Early trading saw the STOXX 600 rise 0.1% to 634.16 points, hovering near record territory, with mining stocks spearheading the gains with a 1.7% jump.

The market's upward momentum was largely supported by encouraging updates from major players like HSBC, Nestle, and Capgemini, which helped offset broader macroeconomic concerns. However, the session was not without its laggards:

Delivery Hero: Shares tumbled 5.2% after the company’s annual gross merchandise value missed market estimates, highlighting the intense competition and economic hurdles within the food delivery sector.
Banking Sector: Financial stocks dipped over 0.4% as investors reacted to the insolvency of MFS, a UK mortgage-finance firm, and assessed the potential contagion or exposure risks across the industry.

Overall, while sector-specific challenges like the MFS insolvency and tech-disruption fears remain on the radar, the prevailing trend in February has been one of cautious optimism fueled by strong corporate fundamentals.

On the FX front, the US dollar is on track to secure its first monthly gain since October, bolstered by a flight to safety amid simmering geopolitical tensions.

This resurgence comes as the Chinese yuan lost its upward momentum following government intervention to halt a prolonged currency rally. While the greenback found strength, the Australian dollar emerged as a standout performer, heading for its fourth consecutive monthly gain. The Aussie rose 0.12% to $0.7115, fueled by a robust economy and expectations that the central bank will pivot toward interest rate hikes, making it the top-performing G10 currency this year with a 6% year-to-date increase.

In contrast, other major currencies faced a more complicated landscape:

The Japanese Yen: Despite Governor Kazuo Ueda signaling a potential near-term rate hike, the yen remained weak due to domestic political instability. The dollar has capitalized on this, gaining nearly 0.9% against the yen in February to trade at 156.17.

The Euro and Sterling: Both currencies are staring at monthly losses. The euro held steady near $1.18 but is down 0.4% for the month, while the British pound remained flat at $1.348, snapping a three-month winning streak with a 1.4% decline in February.

Overall, the final Friday of the month highlights a divergence in central bank outlooks, where domestic economic strength in Australia and geopolitical jitters globally are redefining currency hierarchies.

Currency Power Balance

Markets Today: FTSE 100 prints fresh highs as STOXX 600 nears record streak. US PPI data and US/Iran risk in focus - ExpertFX School — Source: OANDA Labs

Oil prices went up by about $1 as markets worried that the ongoing nuclear talks between the US and Iran might lead to problems with the world's oil supply.

Brent crude rose by 1.6% to reach $71.88 per barrel, while US oil (WTI) increased by 1.7% to $66.31. These price jumps happen because there is political tension in oil-producing regions, due to potential supply interruptions.

Gold prices also stayed very high and steady on Friday, finishing a massive seven-month winning streak.

Markets are nervous about new US taxes on imported goods (tariffs) and the friction with Iran, they are buying gold as a "safe-haven" to protect their money.

While the price of gold dropped a tiny 0.1% on Friday to $5,181.18 per ounce, it has actually grown by 6.5% just in February. Even more impressive is that over the last seven months, the value of gold has shot up by a total of 58%.

Read More:

Economic calendar and final thoughts

The day ahead will be quiet in the Euro Area after a barrage of inflation data this morning. Both French and Spanish inflation did come in higher than market expectations which surprisingly is a positive for the EU which had concerns around inflation falling below the 2% target of the ECB.

Looking ahead to the US session, it also lacks any significant high impact data releases. The primary focus for the US economic calendar today is the release of January’s Producer Price Index (PPI) report.

Both headline and core inflation figures are expected to rise by 0.3% month-on-month, which aligns perfectly with market consensus. Unless the data deviates significantly from these projections, I anticipate the release will be a "non-event" with minimal impact on market volatility.

While Federal Reserve officials John Williams and Neel Kashkari are scheduled to speak following yesterday's dovish remarks from Austan Goolsbee, investors are largely ignoring "Fedspeak" for now. This indifference stems from the fact that recent economic data simply does not justify a rate cut in the next two meetings.

There have been some warnings issued by China and other countries warning citizens to leave Iran and Israel respectively. Could this be a precursor for an attack by the US? Keep a close watch ahead of the market close today as any major escalation over the weekend could lead to huge gaps at the market open on Sunday evening.

Chart of the Day - FTSE 100

From a technical perspective, the FTSE 100 index continues to hold comfortably above the 100-day MA and extend its gains.

Having printed fresh highs this morning around the 10911 handle the index may be eyeing further gains..

For now though, bulls remain firmly in control even though a pullback to support around the 10825 and 10735 mark cannot be ruled out.

Only a four-hour candle close below the higher low swing point at 10662 would lead to a change in structure and could lead me to reevaluate my outlook.

Immediate support rests at 10825 before the 10662 handle comes into focus.

Resistance to the upside at 10911 needs to be cleared if bulls are to make a run for the psychological 11000 handle..

FTSE 100 Index Daily Chart, February 27, 2026

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