Welcome back to another Weekly Market Update, where we break down the most important economic data, corporate news, and geopolitical events shaping global financial markets.
This week, markets were influenced by a combination of economic indicators from the United States and the United Kingdom, along with rising geopolitical tensions in the Middle East.
The UK economy showed modest growth in early 2026, with real GDP expanding by 0.2%, supported mainly by a rebound in production and steady performance in the services sector, while construction activity remained weak. The data suggests a mixed start to the year for the UK economy.
Meanwhile, the U.S. labor market remained relatively stable. Job openings stood at 6.9 million, with 5.3 million hires and 5.1 million separations, indicating a balanced labor market with little change from the previous month.
Looking at broader economic growth, the U.S. economy expanded at an annual rate of 0.7% in Q4 2025, slowing significantly from the 4.4% growth recorded in the third quarter. The slowdown was mainly driven by declines in government spending and exports, although consumer spending and private investment remained resilient.
Inflation data also remained a key focus for investors. U.S. consumer prices increased by 0.3% in February, with shelter, food, and energy contributing to the rise. On a yearly basis, inflation stood at 2.4%, while core inflation excluding food and energy reached 2.5%, suggesting that price pressures remain moderate but persistent.
From the corporate earnings side, several major companies made headlines:
NIO shares moved higher after HSBC upgraded the stock, supported by strong electric vehicle deliveries and continued investment in EV technology.
Meanwhile, Adobe reported strong Q1 earnings that beat expectations, but its stock declined after the CEO announced plans to step down, raising concerns about the company's future strategic direction.
However, the dominant theme for global markets remains the escalating Middle East conflict involving Iran, Israel, and the United States. Rising tensions have disrupted energy markets and global shipping routes, particularly around the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
As a result, oil prices surged above $100 per barrel, increasing concerns about higher energy costs, inflation pressures, and potential disruptions to global trade. The geopolitical uncertainty has also triggered volatility across global equities while boosting demand for safe-haven assets like gold.
Investors are now closely monitoring whether the conflict will escalate further and how it may impact global inflation, central bank policies, and financial markets in the coming months.
