Connect with us

Business

Global Markets React to Trade Tensions as Investors Weigh Trump’s Tariff Moves

Published

on

Global stock markets remained volatile on Tuesday as investors responded to escalating trade tensions and economic uncertainty following recent remarks by US President Donald Trump. Concerns over potential tariffs and economic slowdown have sent Asian, European, and US markets into a downturn, with tech stocks and major indices experiencing sharp losses.

European Markets Open Mixed Amid Tariff Concerns

European markets opened with mixed performances on Tuesday, as investors assessed the potential impact of Trump’s tariff policies on global trade and company earnings.

  • FTSE 100 (UK) dipped 0.10% in early trading.
  • DAX (Germany) rose 0.6%, while CAC 40 (France) gained 0.4%.
  • The pan-European STOXX 600 fell 0.2%, reflecting broader market unease.

Market analysts suggest that Trump’s comments about a “period of transition” have raised fears of an economic slowdown, leading investors to adjust their expectations and pricing strategies.

“Trump’s willingness to endure short-term economic pain for long-term structural gains is being priced into the markets. Investors can no longer assume his policies will always favor stock market performance,” said Kyle Chapman, an FX analyst at Ballinger Group.

Asian Markets See Extended Sell-Off

Asian markets followed Wall Street’s lead, with stock indices experiencing losses overnight amid growing fears of a prolonged US-China trade war.

  • Nikkei 225 (Japan) dropped 0.6% to its lowest level in six months, though it recovered from an earlier 2% decline.
  • Shanghai Composite (China) rose 0.4%, buoyed by government measures aimed at stabilizing the slowing economy.
  • Hang Seng (Hong Kong) remained flat at 23,782.14.
  • S&P/ASX 200 (Australia) declined 0.9%, while Kospi (South Korea) fell 1.2%.
See also  Eurozone Services Rebound in December, but Manufacturing Slump Persists

According to IG analysts, the global market sell-off is being exacerbated by recession fears linked to Trump’s tariff rhetoric.

Wall Street Suffers Steep Decline

The US markets closed sharply lower on Monday, with tech stocks leading the downturn.

  • Nasdaq Composite plummeted 4%, marking its biggest single-day loss since 2022 and wiping out $1.1 trillion (€710 billion) in market value.
  • S&P 500 declined 2.7%.
  • Dow Jones Industrial Average fell 2.1%.

Goldman Sachs also cut its US growth forecast for 2025, revising expectations from 2.4% to 1.7%, adding to investor concerns.

The “Magnificent Seven” tech stocks—including Apple, Microsoft, and Tesla—were among the hardest hit, as analysts warned that higher tariffs could erode profit margins and slow earnings growth.

“Markets are now facing weaker earnings prospects, alongside the added cost burden created by tariffs,” said Kyle Rodd, a senior analyst at Compital.com Australia.

Commodities and Currency Markets React

  • Oil Prices:
    • US crude oil rose 0.42% to $66.31 per barrel.
    • Brent crude climbed 0.3% to $69.50 per barrel.
  • Gold Prices:
    • Gold increased 0.5% to $2,900.4 (€2,661.6) per ounce, hovering near record highs.
  • Currency Markets:
    • EUR/USD pair rose 0.6%.
    • EUR/GBP edged up 0.2%.

Corporate Earnings Updates

Volkswagen shares gained 1.6% on Tuesday morning after the company released its full-year 2024 earnings, despite reporting a 15% drop in annual profits. The German automaker remains optimistic about revenue growth in 2025.

Other major earnings reports expected today include Lego, Persimmon, and Leonardo.

Outlook: Volatility Expected to Continue

With global trade uncertainty, inflation concerns, and weaker growth forecasts, analysts anticipate that market volatility will persist in the coming weeks. Investors will closely watch further developments in US trade policy, corporate earnings reports, and central bank moves for clues on economic stability.

Business

South Korea’s Economy Grows 1% as Semiconductor Boom Drives Exports and Investment

Published

on

South Korea’s economy grew faster than expected in the third quarter, supported by strong semiconductor demand and increased investment in production equipment, although economists warned that the country’s dependence on the chip industry leaves it exposed to a potential slowdown in global artificial intelligence spending.

Gross domestic product rose by 1.0% between July and September compared with the previous quarter, according to preliminary figures released by the Bank of Korea on Tuesday. The expansion was more than three times the central bank’s August forecast of 0.3%.

Exports increased by 2.3% during the quarter, driven by semiconductors, machinery and electrical equipment, the Bank of Korea said. Investment in facilities climbed by 4.1%, largely reflecting spending on machinery used in semiconductor manufacturing.

The figures support the central bank’s assessment that strong demand for chips is sustaining export performance and business investment, according to Kwon Hyo-sung of Bloomberg Economics.

South Korea’s semiconductor exports reached $148 billion (€127 billion) in the third quarter, marking a 218.7% increase from the same period a year earlier, government figures showed. Rising chip demand has provided a significant boost to the country’s trade performance and broader economic activity.

On an annual basis, South Korea’s economy expanded by 3.4% in the third quarter, compared with 3.7% growth in the previous three months.

Real gross domestic income, a measure of the purchasing power generated by economic activity, increased by 18.8% year-on-year. The rise was the strongest in nearly 49 years and was supported by higher semiconductor prices.

The latest figures follow a strong start to the year. South Korea’s economy expanded by 1.7% quarter-on-quarter in the first three months of the year, its fastest growth in more than five years, as demand for semiconductors strengthened.

See also  Oil jumps above $100 after Iranian strikes on Omani energy facilities

However, economists warned that the recovery remains concentrated in one major industry, creating risks if demand weakens.

“The risk is that growth stays heavily concentrated in the semiconductor sector, leaving South Korea exposed to a slowdown in global AI spending,” said John Bromhead, a senior economist at Moody’s Analytics.

The warning reflects concerns that the current wave of investment in AI infrastructure may not continue at the same pace. A reduction in spending by technology companies could weaken demand for advanced chips, affecting South Korea’s exports, manufacturing investment and economic growth.

The semiconductor boom has also helped strengthen the country’s external finances. South Korea recorded a current account surplus of $116.6 billion (€100 billion) in the second quarter, reaching a record high.

While robust chip exports have supported growth and income, the latest data highlights the challenge facing policymakers as they seek to sustain economic momentum while limiting exposure to shifts in the global technology market.

Continue Reading

Business

Russia and Kazakhstan Sell Gold Reserves as Poland Continues Buying

Published

on

Russia and Kazakhstan are reducing their gold holdings while Poland continues to expand its reserves, highlighting differing strategies among central banks as gold prices remain elevated. Analysts say the sales are unlikely to trigger a major decline in global prices, although they raise questions about whether other countries could follow the same path.

Russia has been selling gold throughout 2026. In September, its reserves fell by approximately 6.2 tonnes, taking the total reduction since January to around 62 tonnes. A comparable pace of selling has rarely been seen in Russia’s modern history. In 1998, the country sold 118 tonnes of gold over three months.

Adam Stroniawski, managing director of Polish precious metals dealer Mennica Skarbowa, told Euronews that Russia’s sales were linked to a budget shortfall caused by the war in Ukraine and increased defence spending.

He said Russia was selling gold outside the London bullion market, with transactions taking place through Hong Kong and China’s central bank emerging as the main buyer. Hong Kong trade data showed that about 100 tonnes of Russian gold arrived between January and July, nearly three times the volume recorded during the same period last year.

Stroniawski expects the transactions to have a limited effect on international prices. He also said Russia could eventually return to buying gold and rebuilding its reserves, as it did after its 1998 sell-off.

Kazakhstan has also announced plans to reduce its gold holdings. The country was among the world’s largest gold buyers during the first eight months of 2026, but intends to bring gold’s share of its total reserves down from around 78% to 75% by the end of the year.

See also  Oil Prices Slide as US–Iran Accord Eases Supply Fears While Markets React to Fed Policy Shift

Stroniawski said the move could be temporary, reflecting budget pressures or an opportunity to realise profits after years of buying. The planned reduction is relatively modest and sales are expected to be spread over time, limiting the likely effect on global markets.

Poland, meanwhile, is not expected to follow the same course. The National Bank of Poland has steadily increased its gold holdings and is approaching its target of 700 tonnes. Stroniawski said the country’s substantial reserves support its credit standing and help stabilise its currency. Poland currently ranks 10th globally in gold reserves, he added, and reaching the target would not necessarily mark the end of purchases.

Gold’s performance has been mixed in 2026 following substantial gains in previous years. According to the World Gold Council, prices rose 25.5% in 2024 and 67.4% in 2025 in US dollar terms, before declining 4.4% during the first nine months of 2026.

Stroniawski believes temporary price corrections do not necessarily undermine gold’s longer-term outlook. Central-bank purchases and demand from investors seeking a safe-haven asset could continue to support prices.

He cautioned, however, that investors should not expect guaranteed short-term returns. Gold, he said, is more likely to deliver reliable gains over an extended period.

Continue Reading

Business

San Francisco Startup Claims Breakthrough in Turning Mercury Into Gold

Published

on

San Francisco-based fusion energy startup Marathon Fusion says it has converted mercury into stable gold at a rate 10 times higher than a record previously reported by CERN, reviving questions about whether laboratory-produced gold could eventually affect the precious metal’s market.

The company announced on Wednesday that it had achieved the transmutation last month. However, the claim has not been independently verified, and details about the quantity produced, production costs and the process’s commercial viability remain unclear.

Founded in 2023 by Kyle Schiller and Adam Rutkowski, a former SpaceX engineer, Marathon Fusion develops fuel systems for future fusion power plants. These facilities aim to generate electricity by fusing atomic nuclei, a process that also powers the sun.

The company lists the US Department of Energy as a partner on its website and received a 2023 award from the department’s Advanced Research Projects Agency-Energy. Its backers include Breakthrough Energy, founded by Bill Gates, and mining group Anglo American, which owns diamond company De Beers.

Marathon said its process uses neutrons generated by fusion reactions to bombard mercury. This produces an unstable isotope that subsequently decays into gold.

The company said it had exceeded a record reported by CERN, the Geneva-based organisation operating the world’s largest particle physics laboratory. In 2025, CERN reported that its Large Hadron Collider had produced approximately 29 picograms of gold during operations between 2015 and 2018. The gold nuclei existed for only a fraction of a second before being destroyed in collisions with accelerator equipment.

Marathon also claims to have broken a 40-year-old Soviet record using its plasma centrifuge, a machine designed to separate isotopes used in fusion fuel. It is developing a reactor in San Francisco intended to achieve record power density.

See also  Record-Breaking Bluefin Tuna Sells for €2.78 Million at Tokyo New Year Auction

The announcement has drawn attention because of the impact laboratory-grown diamonds have had on the natural diamond industry. Lab-grown diamonds are chemically identical to mined stones but can be produced at substantially lower prices. Industry analyst Paul Zimnisky said wholesale prices for laboratory-grown diamonds fell by 90% to 95% from their 2015 levels.

De Beers introduced its Lightbox laboratory-grown diamond brand in 2018 but discontinued it in 2025 to concentrate on natural diamonds. Anglo American is now in talks to sell its 85% stake in De Beers for about $1 billion, according to Bloomberg.

Gold presents a different challenge. Unlike diamonds, it is also widely held by central banks as a reserve asset. The World Gold Council reported that mines produced 3,672 tonnes in 2025, while approximately 222,600 tonnes have been mined throughout history.

Marathon estimated in a 2025 study that a fusion plant could potentially produce about five tonnes of gold annually per gigawatt of electricity. One hundred plants operating at that level could add around 500 tonnes to annual supply, equivalent to roughly 14% of 2025 mine production.

However, commercial fusion power plants are not yet generating electricity for sale, and widespread deployment remains years away. Marathon has also said the resulting gold could contain radioactive isotopes and might require storage for up to 18 years before being sold.

No public plans have been announced to commercialise the process. While the claim remains unverified, the prospect of producing gold through nuclear reactions has raised questions about how future technological advances could affect the precious metal market.

Continue Reading

Trending