12 February 2026
US stocks ended little changed on Wednesday as investors weighed the outlook for Fed rate cuts after stronger-than-expected payroll data. The S&P 500 closed flat.
US Treasuries fell (yields rose) following the upbeat jobs report and a soft 10-year Treasury debt auction result. 10-year yields climbed 3bp to 4.17%.
European stocks were mixed as investors assessed better-than-expected US jobs data. The Euro Stoxx 50 edged down 0.2%. The German DAX fell 0.5% and the French CAC lost 0.2%. In the UK, the FTSE 100 advanced 1.1%, boosted by commodity prices.
European government bonds rose (yields fell). 10-year German bund yields fell 2bp to 2.79%, as 10-year French bond yields were lower by 3bp to 3.38%. In the UK, 10-year gilt yields dropped 3bp to 4.48%.
Asian stock markets traded mixed but were mostly higher on Wednesday amid a weaker US dollar. Korea’s Kospi extended recent rallies, ending up 1%. Hong Kong’s Hang Seng and China’s Shanghai Composite advanced by 0.3% and 0.1%, respectively. Elsewhere, India’s Sensex was little changed. Japan’s financial market was closed for a holiday.
Crude oil prices rose on Wednesday. WTI for March delivery settled 1.1% higher at USD64.6 a barrel.
China CPI inflation fell to 0.2% yoy in January, down from 0.8% yoy in December. This reflects a higher base due to the timing of the Lunar New Year holidays, with food prices returning to deflation.
In the US, non-farm payrolls surprised on the upside at +130k in January, up from +48k in December. Looking through the monthly volatility, recent payrolls data suggest the labour market is stabilising and may even be showing tentative signs of improvement.
In the UK, a small rise in Q4 GDP is expected, reaching 0.2% qoq, with consumer spending remaining weak.
India's headline inflation rate may rise on a gradual easing of food price deflation to 2.8% yoy in January, from 1.3% yoy in December, but remain below the 4% target in the near-term.
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