Stay up to date with the latest market trends, economic shifts and key financial developments across the UK, US, and Asia – giving you clear insights to support client conversations.
This week's headlines:
- Trump tariffs struck down by Supreme Court – the court ruled that he exceeded his authority when taking advantage of powers reserved only for national emergencies. Trump responded by introducing a new tariff program at 10%, governed by alternative legislation. However, this can only run for 150 days, at which point congressional approval is needed to continue.
- Green party wins Gorton and Denton by-election – after a hotly contested election between the Greens, Labour and Reform, the Greens managed to take the Manchester seat. This was a big disappointment for Labour, who won by a large majority in the general election, and intensifies talks of ousting Starmer.
- Eurozone consumer sentiment weakens – the Eurozone Economic Sentiment Indicator weakened in February, falling below January’s three year high. This was led by drops in sentiment in France and Italy, while Spain and Germany remained stable.
- UK consumer confidence falls – UK GfK Consumer Confidence Index fell to -19 in February, undershooting market expectations as rising unemployment figures and concerns over job security weighed on sentiment
- Netflix drops bid for Warner Brothers – Netflix dropped out of the bidding war for Warner Bros. Discovery Inc after rival bidder Paramount increased its offer to around $11bn. This clears the way for Paramount to merge with the Hollywood studio once shareholder approval is given
What this means for financial advisers and clients
While the Supreme Court’s momentous ruling on tariffs is certainly a set-back for the Trump administration, plenty of other avenues exist. Evidenced by Trump’s immediate announcement of a replacement 10% global tariff under Section 122 of the 1974 Trade Act. However, this route comes with further complications – notably that the president can only impose it for 150 days without congressional approval. It’s also a very blunt instrument, meaning Trump loses some ability to chop and change rates frequently to suit his deal making agenda. Or his mood. Earlier in the week the administration had stated a 15%, not 10%, global tariff would be brought in, but the levy has since gone live at 10% with no reference to this higher rate.
Another thorny issue not yet resolved is the issue of tariff refunds, this could prove extremely complicated (and costly) and is something Trump will be very keen to avoid.
Chart of the week - China’s falling US exposure
Source: Apollo; China General Administration of Customs (GAC), Macrobond. Data is six-month moving average.
Why this matters
Within the US, the costs of tariffs are largely being shouldered by US firms who’ve yet to pass the full cost onto domestic consumers. However, it’s also worth a look at one of the main targets of these trade barriers – China. While tariffs undoubtedly have a negative impact on the Chinese economy, the country has spent the last few years working to lower its dependence on the US. As shown above, while total Chinese exports have remained steady, the share of exports going to the US has halved from 20% in 2018 to just 10% today. Meaning any tariff blows cause a much lower impact than they would have done 8 years ago. China also has the upper hand elsewhere, most notably over control of its vast supply of rare earths, something increasing vital for US AI and tech development.
While significant risks remain for China (internally and externally) the country is certainly negotiating with the US from a position of strength and has shown a willingness to fight rather than roll-over on their demands.
The Markets
FTSE 100 storms ahead
The FTSE 100 hit a new record high this week following gains from heavyweights like HSBC and mining companies like Glencore and Anglo American. Rolls-Royce and LSE group also rose on announcements of planned share buyback programs.
US tech concerns linger
US markets remained flat following Nvidia’s earnings results, as strong numbers failed to quell ongoing AI spending concerns, with other tech giants seeing marginal falls.
Emerging Markets stay positive
While support from smaller markets like Korea kept emerging market indices in positive territory this week, China remained broadly flat. This was driven by spreading tech fears fighting against investors rebuilding positions following Lunar New Year holiday
Gold continues to rise
Gold prices rose again this week thanks to renewed trade uncertainty and continued geopolitical tensions.
| | Weekly Change | YtD Change |
|---|---|---|
| FTSE 100 | 1.53% | 9.59% |
| FTSE 250 | -0.13% | 5.91% |
| S&P 500 | -0.09% | 0.59% |
| NASDAQ | -0.01% | -1.22% |
| FTSE Developed Europe Ex-UK | 0.12% | 6.49% |
| FTSE Emerging Markets | 1.54% | 8.04% |
| FTSE Japan | 1.56% | 13.96% |
| Brent Crude | -1.15% | 16.40% |
| Gold Spot | 1.46% | 20.06% |
| UK 10yr Gilt yield | -9bp | -23bps |
| US 10yr Treasury yield | -6bps | -18bps |
Source: FE FundInfo, goldprice.org, exchangerates.org.uk, investing.com and finance.yahoo.com. GBP returns as at close of business on Thursday 26th February 2026.
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