Stocks pulled back as President Donald Trump’s Greenland-related tariff threats reignited trade tensions, testing market confidence after a rally fueled by investments in artificial intelligence. Treasuries joined a selloff in global bonds. The MSCI Asia Pacific Index fell 0.5%, with nine of its 11 subgroups declining. Equity-index futures indicated losses for US benchmarks when Wall Street reopens on Tuesday after a holiday. Contracts indicated more losses for European shares after their worst day since mid-November. Treasury yields climbed amid concerns about fiscal pressure, the tariff threat and question marks over the impact that might have on demand for US assets. Attention in Asia was on Japan, where the country’s 40-year bond yield rose to 4% on Tuesday, the highest since its debut in 2007. Also, a 20-year government bond sale saw weaker demand than its 12-month average. Trump’s threat to impose tariffs on eight countries opposing his bid to control Greenland, and pushback from Europe, has reignited volatility and driven investors toward haven assets such as gold and silver. The renewed trade tensions come against a backdrop of concerns over the Federal Reserve’s independence and Trump’s policies such as a cap credit-card rates in the US. The US-Europe standoff comes as resilient earnings and ongoing investment in AI have underpinned risk appetite. Market direction now partly depends on the European Union’s response, with the bloc considering tariffs on €93 billion ($108 billion) of US goods. French President Emmanuel Macron intended to request the activation of the EU’s so-called anti-coercion instrument. German leader Friedrich Merz, however, said Monday his country’s heavier dependence on exports means it’s less willing to unleash the countermeasure. While most stock markets declined, South Korean shares extended their winning run to a record-equaling 13 days. The Kospi — a bellwether for AI investments — is the world’s second best-performing gauge worldwide this year. Taiwanese stocks also edged up moderately. Asian markets have largely shrugged off the US-Europe tussle, said Derek Tay, head of investments at Kamet Capital Partners. In other corners of the market, a gauge of the dollar stabilized following the sharpest decline in a month on Monday. Gold and silver edged lower from record closing highs after a surge in haven buying. Cryptocurrencies also declined, with Bitcoin trading close to $92,500. Treasuries joined the global bond selloff as cash trading of the securities resumed in Asia following a US holiday on Monday. Australian and New Zealand bonds also fell, while German bund futures declined. Global bonds have started the year on the backfoot after rounding off their biggest annual gain since 2020 as investors demand higher yields to compensate for persistent inflation and rising government borrowings. There is lingering uncertainty around threats to Fed’s independence, growing speculation that Rick Rieder may be the next Fed Chair, and a possible Supreme Court ruling against some of Trump’s tariffs that could add to concerns around the budget position, he said. With Wall Street closed on Monday, the markets haven’t had a complete opportunity to discount the fallout from the latest escalation in geopolitical risk, Kyle Rodda, a senior analyst at Capital.com, wrote in a note. Trump is scheduled to address the World Economic Forum in Davos on Wednesday.
Nikkei -1.11% Hang Seng -0.28% CSI -0.37% Shanghai -0.16% Shenzen -1.10%
Eur$ 1.1662 CNH 6.9540 CNY 6.9608 JPY 158 GBP 1.3441 CHF 0.7961 RUB 77.5000 TRY 43.2781 WTI$ 59.58 +0.24% Gold 4,690 +0.40% BTC 91,600 -1.44% ETH 3,160 -1.50% SOL 132.90 -0.85%
S&P -1.37% Nasdaq -1.61% EuroStoxx -0.40% FTSE -0.46% Dax -0.57% SMI -0.18%
Macro :
- Saudi Foreign Minister, Rubio Discuss Regional Developments: SPA
- Citi Downgrades European Stocks on US Friction Over Greenland
- UK Tries to Fix Water Sector With Longer Investment Cycles
- Surrounded by billionaires in Davos, Trump plans to lay out how he'll make housing more affordable
- Trump Wants His Peace Board Signed in Davos. Macron Declines
Keep an eye on :
Keep an eye on :
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- ANTIN FP : Antin Appoints Co-Chief Investment Officers
- ARCAD NA : Arcadis Completes Buyback Program at Average €38.24/Share
- ARDX US : Zydus Life in Talks to Buy US Biopharma Firm Ardelyx: CNBC-TV18
- BHP LN : BHP’s Potash Blowout Overshadows Australia Iron Ore Record
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- 1 HK : CK Hutchison in Talks to Sell Three Ireland to Liberty: FT
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- CSG IPO : CSG Said to Eye Friday Trading Debut at €25 Billion Valuation
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- RF FP : Eurazeo to Divest Ex Nihilo Stake to L Catterton
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- KOMN SW : Komax FY Orders CHF565.0M Vs. CHF577.2M Y/y
- LDO IM : Leonardo Chair Hopes for Eventual Fincantieri Merger: Radiocor
- LBTYA US : CK Hutchison in Talks to Sell Three Ireland to Liberty: FT
- LULU US : Lululemon Founder Seeks Advent’s Ouster in Proxy Fight: Semafor
- MC FP : China Duty Free Unit to Buy DFS HK, Macau Assets For Up To $395m
- NTGY SM : IFM Aims to Boost Naturgy Stake to 29.9%: Cinco Días (from 16.90%)
- NOVOB DC : Novo Holdings Buys 49% Stake in India’s Surya Hospitals: ET
- OCI NA : Dutch Court Blocks Shareholder Vote on OCI-Orascom Merger
- OGN US : Sun Pharma Places Non-Binding Offer for US-Based Organon: ET
- PDD US : *CHINA DEEPENS PROBE INTO PDD AFTER FISTFIGHTS WITH REGULATORS
- RNO FP : Automaker Renault Will Help France Develop Its Drone Industry
- RNO FP : Renault Group 2025 Global Vehicle Sales Rise 3.2% to 2.34m
- RYA ID : Elon Musk Again Floats Buying Ryanair: ‘How Much Would It Cost’
- Stratolaunch : Elliott Invests in Hypersonic-Flight Company Stratolaunch -- WSJ
- UMG NA : NetEase Cloud Music, UMG in Multi-Year Licensing Pact for China
- VLA FP : Valneva Voluntarily Withdraws BLA, IND on Chikungunya Vaccine
- ViiV Healthcare : Shionogi Invests $2.1b to Raise ViiV Healthcare Stake
- VIRF FP : Virbac Sees 2026 Revenue at Constant FX, Scope Up 5.5%-7.5%
- VONN SW : Vontobel, TwentyFour Asset Management to move to City's 'Walkie Talkie' building