Equities fell across Asia as concerns over US geopolitical priorities weighed on risk sentiment, with gold prices reaching a record high. The yen and Treasuries rose, while US equity index futures declined. President Trump’s pressure on Ukraine to reach a peace deal with Russia raised concerns among European allies that he may walk back years of support for the Eastern European nation. Meanwhile, Trump also talked about a potential 25% levy on lumber, adding to uncertainty over his tariff plans.
Gold prices surged to an all-time high of $2,947.23 an ounce as traders sought safe-haven assets amid geopolitical tensions. The Bank of Japan is expected to raise interest rates sooner rather than later, driving the yen to its strongest level against the dollar since December. However, the war in Ukraine continues to dominate markets in Europe, with officials in the region fuming after being excluded from US-Russia talks.
In other news, Airbus struck a cautious note for this year’s earnings, while Renault SA forecast roughly stable returns as it continues an overhaul of its lineup. Mercedes-Benz Group AG expects earnings to be significantly lower this year due to muted demand for electric vehicles. Alibaba Group Holding Ltd. shares slid as investors turned their focus to the company’s earnings presentation Thursday.
Key events this week include Eurozone consumer confidence, US initial jobless claims, and the Fed’s Austan Goolsbee and Alberto Musalem speaking on Thursday.
Source: https://finance.yahoo.com/news/asian-equities-fall-fed-minutes-223822005.html