European equities were mixed on Wednesday, with the STOXX 50 up 0.5% while the broader STOXX 600 slipped 0.2%, as investors awaited major releases including the Eurozone flash CPI and the US ADP jobs report. Markets expect inflation in the bloc to have eased to 1.7% last month, staying comfortably below the ECB’s target, though a sharper downside surprise could fuel concerns among policymakers already wary of the euro’s rapid appreciation. Both the ECB and the Bank of England are widely expected to leave rates unchanged on Thursday. On the corporate front, Credit Agricole fell more than 2% after posting fourth-quarter profit that missed analysts’ forecasts.

The annual inflation rate in the Netherlands eased to 2.4% in January 2026 from 2.8% in the previous month, according to preliminary estimates. This marked the lowest reading since December 2023, as price growth slowed across most product groups, particularly food, beverages, and tobacco (2.0% vs 3.1% in December). Inflation also moderated for industrial goods excluding energy and motor fuels (0.6% vs 0.9%) and for services (3.9% vs 4.1%). On the other hand, energy prices including motor fuels rebounded (0.4% vs -0.4%). Meanwhile, the index for consumption abroad rose 0.2% year-on-year, easing from a 0.5% increase in December. On a monthly basis, consumer prices were expected to fall by 0.7%, following a 0.2% increase in the previous month. HICP-based annual inflation, which excludes owner-occupied housing costs, was estimated at 2.2%, down from 2.7% in December.

The Japanese yen depreciated past 156 per dollar on Wednesday, sliding for the fourth straight session to a near two-week low ahead of this weekend’s snap lower house election. Prime Minister Sanae Takaichi’s ruling LDP is expected to gain more seats in the national election as she seeks voter backing for increased spending, tax cuts and a new security strategy. Japanese bonds and the yen have come under pressure since Takaichi’s election as she pushes for expansionary fiscal policies, raising concerns about Japan’s fiscal outlook on fears of debt-funded spending. Takaichi also said over the weekend that a weak yen could be an opportunity for export industries, before walking back those comments, clarifying that her remarks were intended to promote an economy resilient to currency swings. The yen had rallied as much as 4.5% in late January on speculation of a US-Japan joint currency intervention but has since retraced more than half of those gains.

Gold climbed back above the key $5,000 per ounce level on Wednesday, building on a more than 6% surge in the previous session, the biggest daily gain since 2008, as dip buyers stepped in following a sharp pullback earlier in the week. Geopolitical tensions also lifted the metal’s safe-haven appeal after US forces downed an Iranian drone near an aircraft carrier in the Arabian Sea, although President Donald Trump said diplomacy remains active, with the White House confirming US-Iran talks are still scheduled for Friday. Meanwhile, expectations for rapid Federal Reserve rate cuts eased after Trump nominated Kevin Warsh as Fed chair, though markets still price in two cuts this year, likely around mid-year and later in 2026. Separately, key US labor data, including JOLTS and the monthly jobs report, will be delayed by the partial government shutdown, while House Republicans are set to vote Tuesday on a Senate-approved funding package.

WTI crude oil futures climbed toward $64 per barrel on Wednesday, extending gains from the previous session as geopolitical tensions resurfaced after the US downed an Iranian drone near a US aircraft carrier in the Arabian Sea. The incident unsettled energy markets, though President Donald Trump emphasized that diplomatic channels remain open, with the White House confirming US-Iran talks are still scheduled for Friday. Adding to tensions, Iranian vessels challenged a US-flagged oil tanker transiting the Strait of Hormuz, with US Central Command saying the IRGC harassed the Stena Imperative. Further support came from API data showing US crude inventories fell by 11.1 million barrels last week, the largest draw since June if confirmed by official figures. Meanwhile, OPEC+ expects oil demand to gradually pick up from March or April and will decide on March 1 whether to resume monthly output increases after a first-quarter pause.

Bitcoin dropped to as low as $72,800 in early February, hitting its lowest levels since November 2024 as forced liquidations of leveraged positions intensified and fund outflows accelerated. Industry data showed that nearly 170k leveraged traders were washed out during the selloff, with more than $730 million liquidated over the past 24 hours. Bitwise CIO Matt Hougan said bitcoin has been in a multi-month bear market, arguing that strong institutional adoption and greater regulatory clarity have left investors complacent. Meanwhile, global crypto funds recorded another $1.7 billion in net outflows last week, led by US-listed products, while assets under management have fallen by $73 billion since peaking in October 2025. In other developments, investor Michael Burry warned that bitcoin’s roughly 40% plunge could deepen and inflict lasting damage on companies that have accumulated large holdings over the past year.