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Markets Update: A resurgent rally in Chinese tech stocks falters, the safe-haven yen surges to a two-month peak, and gold skyrockets to a new record high, as global markets brace for uncertainty.
Global Markets Roundup: 20 Feb 2025
Equity Markets: Risk Aversion Takes Hold Amid Tariff Fears
Global stocks approached Thursday with caution, rattled by President Donald Trump’s escalating tariff threats, growing geopolitical tensions, and a cautious stance from the Federal Reserve, which dampened risk sentiment.
Investors sought refuge in gold, propelling it to another record high, while the Japanese yen surged to its strongest level since early December. European futures hinted at a sluggish start, following the STOXX 600’s near 1% plunge, its worst single-day drop in two months. S&P 500 and Nasdaq futures dipped 0.3%, signaling further pressure ahead.
Trump's tariff proposals—targeting pharmaceuticals, semiconductors, and lumber, with automotive tariffs set for April 2—have rekindled fears of a full-blown trade war. While some analysts interpret the moves as bargaining tactics, investor anxiety is mounting.
The uncertainty deepened after Trump shocked European leaders by branding Ukrainian President Volodymyr Zelenskiy a "dictator", while engaging in U.S.-Russia discussions to end the Ukraine war. In Asia, the Nikkei tumbled 1.5% as the yen’s strength pressured Japanese exporters, while Chinese tech stocks stalled after a strong rally. Hong Kong’s Hang Seng Index slid 1.3%, retreating from a four-month high boosted by DeepSeek’s AI breakthrough.
At the Federal Reserve, Trump's initial policy proposals raised inflation concerns, as businesses signaled price hikes to offset import tariffs. Fed minutes from January revealed growing apprehension over inflationary risks. Traders now expect 39 basis points of rate cuts this year, with the first move projected for September, according to LSEG data.
Currencies: Yen Surges, Dollar Dips on Trade Uncertainty
In currency markets, the yen USDJPY soared 0.9% to 150.065 per dollar, reaching its strongest level in over two months, as expectations grew for another Bank of Japan rate hike in 2025. The yen has already gained 4% this year. The U.S. dollar index DXY slipped 0.16% to 107.06, while the euro remained steady at $1.0428.
Commodities: Gold Hits Historic Peak as Oil and Wheat Rally
Gold surged to a record $2,947.11 per ounce, marking its 10th all-time high this year. The metal has soared 12% in 2025, following last year’s 27% gain—its strongest annual performance in over a decade.
Oil prices pulled back from a one-week high, as markets digested supply risks in Russia and the U.S..
Wheat extended its rally for a fifth consecutive session, nearing its highest close since October, fueled by concerns over crop damage from extreme cold in Russia and the U.S.
Agricultural Markets: Corn and Soybeans Climb on Strong Demand
Corn (CBOT): +0.6% to $5.01 per bushel, supported by strong U.S. export demand.
Soybeans: +0.53% to $10.37 per bushel.
Wheat: +0.33% to $6.08 per bushel.
As global markets navigate mounting trade tensions and geopolitical uncertainty, investors remain on edge—seeking shelter in safe-haven assets while bracing for volatile swings ahead.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team