In a significant move, US President Donald Trump announced the imposition of a 25% tariff on all steel and aluminum imports. This decision has sent ripples through the global market, as various economic indicators reflect the broader impact of this policy shift. On the same day, China implemented retaliatory tariffs on select US exports, intensifying trade tensions between the two economic giants. As these developments unfold, global financial markets are reacting with changes in commodities, currency pairs, and government bond yields.
Litecoin (LTC) saw a surge in its price, climbing over 8% to trade around $116.00. Meanwhile, aluminum futures have held steady above $2,640 per tonne, indicating resilience in the face of potential market disruptions caused by the new tariffs. The commodities market is witnessing notable movements, with spot gold reaching unprecedented record highs above $2,900/oz amidst global uncertainties.
In Europe, financial instruments are experiencing shifts as well. Germany's 10-year Bund yield stands at 2.38%, while the UK's 10-year Gilts yield has reached 4.48%. Across the Atlantic, the US 10-year Note yield is slightly higher at 4.50%. In the currency market, the GBP/USD pair remains near 1.2400 during the early European session, reflecting cautious trading amid ongoing geopolitical developments.
The Asian markets are responding dynamically to recent economic data and geopolitical events. Japan's 10-year yield edged up to 1.32%, a level not seen since 2011, following the announcement of a record current account surplus for the year 2024. In Hong Kong, the Hang Seng index rose by 1.7%, bolstered by China's stronger-than-expected January Consumer Price Index (CPI) data.
In Sweden, December industrial orders showed positive growth with a month-on-month increase of 2.0% and a year-on-year rise of 5.8%. Turkey similarly reported robust industrial production figures for December, with a month-on-month and year-on-year increase of 7.0%. These numbers highlight ongoing industrial strength in both regions despite broader market volatility.
European gas prices have climbed to a two-year high due to supply concerns, adding another layer of complexity to the evolving economic landscape. As governments and industries adapt to these new tariff measures and shifting economic indicators, the global markets continue to experience volatility and transformation.