Yahoo Finance UK's Vicky McKeever wites:

Data analytics software firm Palantir (PLTR) is due to release its fourth quarter earnings after the close of US markets on Monday.

Palantir (PLTR) rallied on the back of its third quarter earnings, which were released a day before the US election in November. The stock continued to surged following the election, becoming one of the stocks considered to be part of the "Trump trade", as investors bet on increased defence spending under Trump, which is a key part of Palantir's (PLTR) business.

Stock was around 1.3% lower in premarket, reflecting the broader rout.

The company has guided to revenue of between $767m (£623m) and $771m for the fourth quarter, as well as adjusted income from operations of between $298m and $302m.

In the third quarter results, Palantir (PLTR) raised its full-year revenue guidance to between $2.805bn and $2.809bn. The company also upped its adjusted income from operations estimate to between $1.054bn and $1.058bn.

Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said that the "spotlight will be on Palantir's (PLTR) AI platform, with investors eager to see how it’s driving enterprise adoption and converting pilot programs into full-scale deals".

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The latest PMI from S&P Markit shows output, new orders and employment all saw a further contraction in the UK's manufacturing sector in January. Overall the monthly monitor hit 48.3 — any score below 50 indicates contraction.

"The latest survey also suggests that this retrenchment is being hardest felt among small companies. Largesized manufacturers fared better, seeing output and new orders recover during January," said Rob Dobson, director at S&P Global Market Intelligence.

"There nevertheless seems little scope for any imminent improvement in performance across the board," he added. "Demand conditions remain weak in both domestic and overseas markets, cost pressures are rising and will likely continue to do so as changes to the minimum wage and employer NI announced in last year's Budget feed through.

"Business optimism consequently remains close to December's two-year low, while input price inflation has spiked to a two-year high."

Here are the top lines of the inflation report:

Euro area annual inflation is expected to be 2.5% in January 2025, up from 2.4% in December 2024 according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in January (3.9%, compared with 4.0% in December), followed by food, alcohol & tobacco (2.3%, compared with 2.6% in December), energy (1.8%, compared with 0.1% in December) and non-energy industrial goods (0.5%, stable compared with December).

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Bloomberg is reporting this morning that the Bank of England is expected to deliver both a quarter-point cut to bring its base rate to 4.5%, and a warning about "stagflation" from the government's latest budget.

“It’s clear that growth has materially weakened, meaning the MPC will probably downgrade its growth forecasts for this year,” said Thomas Pugh, economist at accountants RSM told the outlet. “However, inflationary pressures are now rising again.”

The suggestion will come as a blow to chancellor Rachel Reeves, who set out her budget of NI tax increases and other measures for business on a pro-growth agenda.

Markets are currently pricing for three rate cuts this year, which would bring the base rate to 4%.

Yahoo Finance UK's Pedro Goncalves writes:

Gold prices retreated after touching an all-time high of $2,817.22 over the weekend after tariff fears and inflation risks fuelled renewed safe-haven demand.

The spot price of gold rose was muted at $2,800.17 per ounce, while gold futures slipped to $2,830.70.

Despite the pullback, some analysts argue that gold remains an attractive safe haven asset. The recent surge in demand for the precious metal follows fears sparked by Trump’s tariff announcements, which have rattled equity markets and led investors to seek refuge in more stable assets.

Commodity experts have warned that the gold market could experience further volatility in the short term, with the precious metal caught in a balancing act. On one hand, it is seen as a safe haven during periods of geopolitical uncertainty, but on the other, it is negatively correlated with the strength of the dollar and rising US interest rates.

Economists have raised concerns that Trump’s tariffs will push up the cost of imported materials for US manufacturers, increase prices for American consumers, and disrupt global trade flows. Despite these warnings, Trump insisted during a Friday briefing in the Oval Office that "tariffs don't cause inflation”.

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Bitcoin headed to its lowest point since mid-January, dropping as much as 4% in early trade on Monday as market volatility rules.

The pound is 0.6% lower against the dollar so far today, trading at around the $1.23 mark.

The Canadian dollar is now at its lowest level since 2023 and the Mexican peso is down around 3%.

Here's what he said, as reported by the BBC:

US stock futures dived as traders digest Trump tariffs ahead of market open.

From our US team:

US stock futures on Monday pointed to sharp losses for the major indexes, as Wall Street showed the effects of President Donald Trump’s announcement of tariffs on China, Mexico, and Canada.

Nasdaq 100 futures (NQ=F) dived 2.3%, leading the way down. S&P 500 futures (ES=F) spiralled 1.9%, and futures attached to the Dow Jones Industrial Average (YM=F) stumbled 1.5%, or around 650 points.

The tariffs, set to take effect on Tuesday, will include 25% duties on Canada and Mexico, and 10% on China. Energy imports from Canada will be lower with a 10% duty.

The US dollar index (DX-Y.NYB, DX=F) rose to trade near its highest levels in 12 months. Crude oil (BZ=F, CL=F) futures jumped around 2%.

Hello from London. Lucy Harley-McKeown here, gearing up for another volatile week in markets. Over the weekend we've seen Trump tariffs come into play, and threats of more levies on regions other than Canada, Mexico and China.

Coming up:

• EU inflation data

• US car sales data

• OPEC+ meets

Let's get to it.