Business
Euro Surges to Five-Month High Following Trump’s Tariff Announcement
The euro reached a nearly five-month high against the US dollar after President Donald Trump announced sweeping reciprocal tariffs, leading to a broad decline in the greenback. Global markets reacted sharply to the news, with stock indices plummeting and bond yields dropping amid growing economic uncertainty.
Following Trump’s announcement on Wednesday night, the euro rose 0.5% against the dollar, reaching 1.0915 at 5:17 am, close to its five-month peak of 1.0953. The surge nearly erased losses suffered since Trump’s re-election on November 5. The US president stated that his administration would impose a minimum 10% tariff on all countries, with additional higher levies targeting key trading partners. China, the European Union, and Vietnam topped the list of affected nations, facing tariffs of 34%, 20%, and 46%, respectively. China’s import duties will rise to 54% when combined with existing blanket tariffs.
The US dollar weakened significantly against major currencies, including the euro, Japanese yen, British pound, and Swiss franc, as investors feared economic repercussions. The yield on 10-year US Treasury bonds fell to its lowest level since October 2024, reflecting expectations of a slowdown. Meanwhile, commodity-linked currencies, such as the Australian and Canadian dollars, declined against the US dollar, as falling crude oil and copper prices weighed on their performance.
Global Markets Tumble
The tariff announcement triggered a broad sell-off in global equities, with stock markets across Asia experiencing significant losses on Thursday. Japan’s Nikkei 225 dropped nearly 3%, China’s Hang Seng Index slid 1.5%, while Australia’s ASX 200 and South Korea’s Kospi declined by 1% each. The selloff extended to mining stocks, with Australia’s BHP falling 2.4% and Rio Tinto dropping 2.8%. Weaker copper prices also pressured European equities, particularly those tied to the commodities sector.
Market analyst Josh Gilbert of eToro noted that while Australia has minimal direct trade exposure to the US, the broader impact on China and other Asian economies could weigh heavily on Australia’s export-driven market. The economic fallout could intensify if global demand slows and commodity prices continue to decline.
In the US, stock futures pointed to a sharp downturn, with the Dow Jones Industrial Average losing 2.01%, the S&P 500 falling 2.78%, and the Nasdaq dropping 3.3% in pre-market trading. European markets were also set to open lower, with Germany’s DAX futures down 1.89% as of 5:30 am CET. Tech stocks, particularly the “Magnificent Seven,” suffered heavy losses in after-hours trading, with Tesla down 4.5%, Apple losing 2.3%, and Nvidia declining 2.4%. Analysts warned that companies with significant exposure to China, such as Apple, could face further pressure in the coming weeks.
Gold Reaches Record High Amid Economic Uncertainty
The heightened risk-off sentiment sent gold prices soaring to a new all-time high, as investors sought safe-haven assets. Gold futures surged to $3,195 per ounce on COMEX, while spot gold touched $3,167 before slightly retreating.
Kyle Rodda, a senior market analyst at Capital.com, warned that uncertainties surrounding Trump’s trade policies could drive further demand for gold. “There was no clear indication that the Trump administration will stop here with ‘trade wars.’ That could mean further uncertainty,” Rodda said.
Gold has been one of the top-performing asset classes, rising 20% this year following a 30% surge in 2024. Factors such as increased central bank purchases, concerns over US dollar depreciation, and investor hedging strategies have contributed to gold’s sustained rally.
As markets brace for further volatility, traders remain cautious, with attention focused on potential retaliatory measures from affected trading partners and the broader implications for global trade.
Business
Oil Tanker Attacked in Strait of Hormuz, Crew Evacuated
An oil tanker was attacked off the coast of Musandam in the Strait of Hormuz on Sunday, leaving four people injured and prompting the evacuation of all 20 crew members, according to Oman’s Maritime Security Centre.
The vessel, named Skylight and flying the flag of the Republic of Palau, was targeted around five nautical miles (9.26 km) north of Khasab Port, Oman authorities said. The incident marked the first reported attack on a ship in the strategic Strait of Hormuz on Sunday morning.
Oman’s Maritime Security Centre confirmed that the tanker’s crew included 15 Indian nationals and five Iranian nationals, all of whom were safely evacuated. The four injured crew members were transferred for medical treatment. Authorities did not immediately provide details on the cause of the attack or the identities of the attackers.
The incident has heightened concerns about shipping safety in one of the world’s most important oil transit routes. The Strait of Hormuz handles a significant portion of global crude oil exports, and any disruption to its operations can have major implications for energy markets.
In response to the attack, major shipping companies have suspended operations through the Strait of Hormuz. Danish shipping and logistics giant Maersk announced on Sunday afternoon that it had halted all future transits through the waterway until further notice. Other operators are reportedly reviewing their shipping schedules and implementing additional safety measures.
The attack comes amid ongoing regional tensions, with the Strait of Hormuz often at the center of geopolitical disputes. Analysts say the incident could lead to further disruptions in global oil supplies and push energy prices higher if shipping companies continue to avoid the area.
Maritime security experts emphasize the need for close monitoring of shipping traffic and coordinated responses to ensure the safety of vessels and crews in the region. The rapid evacuation of Skylight’s crew has been described as a positive example of emergency preparedness, but the attack underscores the continuing risks faced by commercial shipping in the Gulf.
Authorities are continuing to investigate the circumstances of the attack and are coordinating with international maritime agencies to prevent further incidents. The situation remains fluid, and the potential impact on shipping and regional security is likely to unfold in the coming days.
Business
EU Household Energy Prices Remain Above Pre-War Levels Despite Stabilisation
Residential electricity and natural gas prices across the European Union remain higher than before Russia’s invasion of Ukraine, even though markets have steadied in recent years.
The war, which began in February 2022 and has now entered its fifth year, reshaped Europe’s energy landscape. According to the European Council, Russia’s share of EU pipeline gas imports fell sharply from around 40 per cent in 2021 to about 6 per cent in 2025, following sanctions, embargoes and efforts to diversify supplies.
New data from Eurostat show that between the first half of 2021 and the first half of 2025, household electricity prices in the EU rose 30 per cent, from 22 cents per kilowatt-hour to 28.7 cents. Over the same period, natural gas prices climbed 79 per cent, from 6.4 cents to 11.4 cents per kilowatt-hour.
The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH and VaasaETT, tracks monthly end-user prices in European capital cities. Its January 2026 figures indicate that electricity prices across EU capitals were 5 per cent higher than in January 2022. However, compared with January 2021, prices were up 38 per cent.
Some cities experienced particularly sharp increases over the five-year period. Electricity prices more than doubled in Vilnius, rising 102 per cent. Other large jumps were recorded in Bucharest (88 per cent), Bern (86 per cent), Kyiv (77 per cent), Amsterdam (75 per cent), Riga (74 per cent), Brussels (67 per cent) and London (64 per cent).
Only Copenhagen and Budapest posted declines over that period, at minus 16 per cent and minus 8 per cent respectively.
Among the capitals of Europe’s five largest economies, London and Rome saw notable increases, while Madrid and Berlin recorded relatively modest rises. Paris remained below the EU average increase.
Energy analysts at the European Energy and Climate Policy (IEECP) say the electricity mix has been a decisive factor. Countries such as Spain benefit from a higher share of wind, solar and hydropower, while Nordic nations rely heavily on hydropower, geothermal and wind energy, reducing exposure to fossil fuel price swings.
Looking only at the period from January 2022 to January 2026 presents a different trend. Copenhagen recorded a 44 per cent fall in electricity prices, while London, Madrid, Berlin and Rome also saw declines. Paris, by contrast, registered a 21 per cent increase. Vilnius showed the largest EU rise at 70 per cent, while Kyiv topped the overall list at 87 per cent.
Natural gas prices across EU capitals edged down by 1 per cent between January 2022 and January 2026. Berlin, Brussels and Athens recorded declines of around 40 per cent, while Riga, Warsaw and Lisbon saw strong increases.
Despite the recent stabilisation, household energy bills across much of Europe remain well above pre-invasion levels, reflecting the lasting impact of the energy crisis.
Business
Transatlantic Tensions on Digital Rules Highlight Need for Cooperation
Discussions between Europe and the United States over digital regulation continue to be marked by miscommunication and frustration, even as competitors observe from the sidelines. Europeans and Americans talk past each other while rivals watch. The European Union can set its own standards, but in an interconnected economy, decoupling fantasies and grandstanding won’t help.
The debate often centres on “free speech” concerns voiced by U.S. tech companies and policymakers in response to the EU’s legislative framework for digital platforms. In Europe, such narratives typically prompt defensive reactions. Some Europeans respond with a blunt message: “This is our land, our Union, our laws, follow them, or leave the EU—we’ll find alternative products to use!” Public awareness of American constitutional amendments is low across Europe, just as Americans pay little attention to European digital acts and regulations.
The transatlantic dialogue is further complicated by the global nature of social media platforms. Any EU legislation affecting user experience inevitably influences the functioning of these platforms worldwide, touching on what Americans see as free speech rights. The EU also seeks to extend its influence through the “Brussels effect,” ensuring that European rules shape global standards, while the U.S. maintains a large trade surplus in services and competes technologically with China. This mix of economic, political, and regulatory factors explains why U.S. attention is sharply focused on Europe’s digital policies.
Europeans argue that their 450-million-consumer market has the right to set rules that reflect local principles and values. Attempts to adjust or simplify regulations are difficult, with efforts often met with political resistance and scrutiny. The regulatory ecosystem in Europe supports industries of lawyers, consultants, and experts whose work depends on maintaining complex rules, making reform a sensitive topic.
On the American side, anti-EU rhetoric by public figures has sometimes compounded the problem, drowning out moderates and reinforcing defensive European responses. Analysts note that both regions have seen productive voices sidelined as grandstanding and negative statements dominate public discourse.
Observers argue that long-term thinking is necessary. By evaluating the EU-U.S. tech partnership in the broader context of global alliances, including China and Russia, policymakers can better assess priorities and avoid unnecessary disruption. Blank-slate decoupling between Europe and the United States is unrealistic, and delaying constructive dialogue risks broader economic consequences.
Experts warn that continued transatlantic infighting benefits other global powers and weakens the ability of both regions to set coherent standards in emerging technologies. The message from analysts is clear: cooperation, not confrontation, will determine whether the EU and U.S. can maintain leadership in digital regulation while safeguarding economic and technological interests.
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