US stocks remain subdued as investors weigh US President Donald Trump’s latest tariff threats, while gold soars to a record high. The dollar remains firm, and oil prices bounce back above $76 per barrel.
In response to Trump’s announcement on Monday that steel and aluminium imports will be raised to 25%, shares of US steelmakers surged. However, investors remain cautious due to the potential for global reciprocal tariffs, including an exemption for Australia, which has sparked uncertainty about the future of trade policies.
The Hang Seng index, a key benchmark in Hong Kong, opened at new four-month highs, driven by investor enthusiasm for artificial intelligence and chip stocks. Meanwhile, Mainland China stock indexes dipped slightly due to retaliatory Chinese duties on US energy and some goods.
Gold prices have surged 63% since October, reaching a record peak of just above $2,942 an ounce. Analysts attribute the gold price rally to central bank buying, safe haven demand, and positive momentum driving more buyers.
The Federal Reserve Chair Jerome Powell is set to speak on Tuesday, with investors closely monitoring his comments on tariffs and inflation. The Canadian dollar and Mexican peso have slipped due to Trump’s metal tariffs, while the Australian dollar remains steady.
In currency markets, the Chinese yuan has weakened past the 7.3 per dollar level, trading at 7.3042. Oil prices have bounced back above $76 per barrel, with Brent crude futures above $76.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-pix-2025-02-10