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Global Markets Enter a High-Stakes Week

Global markets enter a high-stakes week, with key central bank rate decisions—including the Federal Reserve, Swiss National Bank, and Bank of England—alongside critical economic data releases. Asian equities began on a positive note, supported by strong Chinese consumption data, though mixed signals from China’s property market tempered optimism.

Oil prices extended gains on hopes of rising Chinese demand, while gold surged past $3,000/oz for the first time, reflecting safe-haven demand amid economic uncertainty. Meanwhile, South Korea’s chip exports plunged as US tech curbs bite, and Switzerland faces a tough rate decision with limited policy space. Investors brace for heightened volatility and shifting sentiment.

Asian Markets Gain Amid Mixed Signals From China; US Futures Dip

Asian equities climbed Monday, buoyed by stronger-than-expected Chinese consumption data, while US stock futures edged lower following remarks from Treasury Secretary Scott Bessent, who dismissed recent market declines as a healthy correction.

Key Chinese indices showed mixed performance as optimism around consumption clashed with concerns over a deepening property slump. Oil prices extended gains on hopes for rising Chinese demand, while Treasuries inched higher with the 10-year yield easing to 4.30%. European futures saw a modest uptick, supported by Germany’s new spending plan, which also lifted the euro.

Meanwhile, investors are bracing for a pivotal week of central bank meetings, with the Fed, BOJ, and BOE expected to provide crucial policy signals.

Investment Insight

China’s renewed focus on boosting domestic consumption presents opportunities for investors, particularly in consumer, travel, and healthcare sectors. However, lingering risks from the property market and export headwinds warrant cautious optimism.

For US markets, the Treasury Secretary’s dismissal of equity volatility underscores a broader expectation of resilience amid policy shifts. Investors should monitor upcoming central bank decisions for cues on global liquidity and growth trajectories.

Oil Prices Rise Amid China’s Economic Stimulus Plans and Red Sea Tensions

Oil extended its gains Monday, with Brent crude climbing above $71 per barrel and WTI nearing $68, as China pledged fresh measures to boost income and consumption.

Optimism over demand from the world’s largest crude importer was tempered by geopolitical risks, with the US launching military strikes on Yemen’s Houthi militants after Red Sea shipping routes were targeted.

Despite the recent uptick, oil remains over $10 below its January highs, weighed down by easing supply concerns, escalating US-China trade tensions, and expectations of slower demand growth. Goldman Sachs cut its year-end Brent forecast to $71, citing downside risks tied to tariffs and OPEC+ production increases.

Investment Insight

China’s stimulus plans could provide a short-term lift to oil demand, but global investors should remain cautious amid persistent macro headwinds, including geopolitical risks and trade uncertainties.

Energy markets are likely to see continued volatility, with US resilience and sanctions on Russia offering some support. Investors should focus on defensive plays in the energy sector and monitor OPEC+ policy shifts and broader economic signals for long-term positioning.

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Global markets steadied as optimism grew that the U.S. will avert a government shutdown, lifting equities after recent declines. The S&P 500 and Nasdaq 100 remain in correction territory, while China’s CSI 300 hit a year-high on expectations of policy support. Gold surged near $3,000 an ounce, driven by escalating U.S. tariffs and safe-haven demand, with analysts forecasting further gains. Foxconn projected strong Q1 revenue despite a 13% Q4 profit decline, citing robust AI server and cloud demand amid trade risks. Meanwhile, CK Hutchison shares tumbled up to 6.7% after Beijing condemned its $22.8 billion port sale to a U.S.-led group, heightening geopolitical tensions. Investors are watching China’s upcoming economic briefing for stimulus details, as consumer stocks rallied on expectations of policy measures.

Markets Stabilize as US Shutdown Risks Recede

Global equities steadied Friday as optimism grew that the U.S. will avert a government shutdown, easing some investor anxiety after weeks of market declines. Asian stocks advanced, with China’s CSI 300 reaching a year-high, while U.S. and European futures pointed higher. The S&P 500 and Nasdaq 100, both in correction territory, had fallen sharply on Thursday, shedding over 10% from recent peaks. Meanwhile, the dollar strengthened for a third consecutive session, and Treasury yields edged lower after a prior rally in haven assets. Traders remain cautious amid U.S. economic risks, including a potential recession and escalating trade tensions under President Trump’s tariff policies.

Investment Insight:

With the S&P 500 in correction territory, the potential for a short-term rebound is rising, particularly as extreme market moves often revert. Investors should watch for rotation opportunities, as capital flows indicate growing interest in Asian equities, especially Chinese A-shares. Meanwhile, persistent trade uncertainties and tightening liquidity conditions underscore the need for selective positioning in global markets.

CK Hutchison Shares Slide Amid Beijing’s Criticism of Port Sale

CK Hutchison shares tumbled as much as 6.7% on Friday after China’s Hong Kong and Macau Affairs Office publicly condemned the company’s $22.8 billion sale of its global port assets, including holdings along the Panama Canal, to a U.S.-led group. The state-owned Ta Kung Pao newspaper labeled the deal a “betrayal” of Chinese interests, amplifying investor concerns about Beijing’s stance. The backlash underscores rising geopolitical tensions as President Trump supports efforts to limit Chinese influence over critical infrastructure. Despite CK Hutchison’s assurances of operational independence, the selloff highlights market wariness over potential regulatory or retaliatory actions from China.

Investment Insight:

The sharp drop in CK Hutchison’s stock reflects the risks of geopolitical entanglements for multinational firms, particularly those with exposure to U.S.-China tensions. Investors should monitor potential regulatory fallout and shifts in Chinese policy toward Hong Kong-based businesses. In the near term, uncertainty over Beijing’s response may weigh on CK Hutchison’s valuation, while broader Hong Kong equities remain resilient, as evidenced by the 2.5% rise in the Hang Seng Index.

Market price: CK Hutchison Holdings Ltd (HKG: 0001): HKD 46.15

Gold Surges Toward $3,000 as Trade Tensions Fuel Safe-Haven Demand

Gold soared to a record high near $2,994 an ounce on Friday, driven by escalating trade tensions as President Trump’s tariff policies stoked concerns over global economic growth. The precious metal has gained 2.6% this week—its strongest advance since November—bolstered by central bank purchases, ETF inflows, and investor flight from risk assets. Futures in New York surpassed $3,000, underscoring bullion’s momentum amid market volatility, with the S&P 500 slipping into correction territory. Analysts see further upside, with Macquarie forecasting a potential rally to $3,500 in Q2. Gold producers, particularly in Asia-Pacific, benefited from the surge, with stocks like Evolution Mining Ltd. hitting record highs.

Investment Insight:

Gold’s rally underscores its role as a preferred hedge in times of geopolitical and economic uncertainty. With reciprocal tariffs set to take effect in Q2 and equity markets facing headwinds, the metal’s appeal remains strong. Investors should monitor central bank buying trends and ETF inflows, as sustained demand could push prices beyond the psychological $3,000 mark. However, any easing in trade tensions or a rebound in risk assets could temper gold’s momentum.

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Asian equities extended losses as US growth concerns and trade tensions weighed on sentiment, with Wall Street strategists trimming forecasts. Intel shares surged over 11% after naming semiconductor veteran Lip-Bu Tan as CEO, amid speculation of a potential manufacturing business sale. Taiwan’s central bank warned of currency risks following record stock outflows, as TSMC shares dropped over 9% this year. Meanwhile, JPMorgan signaled the worst of the US equity correction may be over, citing resilient credit markets and sustained ETF inflows. Oil prices slipped despite strong demand forecasts, as rising OPEC+ production and renewed tariff threats from President Trump clouded the outlook.

Market Jitters Deepen Amid Growth Concerns

Asian equities extended their losing streak, with a regional index falling 0.4% as investors grappled with mounting concerns over US economic growth and geopolitical uncertainty. Futures on the Nasdaq 100 and S&P 500 dropped 0.8% and 0.6%, respectively, reversing gains seen after softer-than-expected US inflation data. Treasury yields edged lower, and the dollar remained stable. Wall Street strategists, including those at Goldman Sachs and Citigroup, have revised down their US equity outlooks, with Citi shifting its stance to neutral while upgrading China. Meanwhile, trade tensions escalated as President Trump signaled retaliation against EU and Canadian tariffs, adding to market unease.

Investment Insight: The market’s volatility reflects deepening investor anxiety over slowing US growth and trade policy risks. While a softer inflation reading initially buoyed equities, concerns over employment data and geopolitical tensions have kept risk appetite in check. With capital increasingly flowing into Asian markets and some strategists suggesting a bottom for US stocks, investors should adopt a selective approach—focusing on regions and sectors poised to benefit from shifting global capital flows while remaining cautious on US equities until macroeconomic clarity improves.

Intel Soars as Lip-Bu Tan Takes Helm

Intel (INTC) shares surged over 11% in after-hours trading following the announcement of Lip-Bu Tan as the company’s new CEO. Tan, a semiconductor veteran and former Cadence Design Systems chief, steps in amid Intel’s steep decline in market position and revenue. His appointment comes as Intel faces intensifying competition from TSMC, Nvidia, AMD, and Qualcomm, while also navigating delays in its US manufacturing expansion under the CHIPS Act. Meanwhile, reports indicate a consortium led by TSMC is in talks to acquire Intel’s manufacturing business, signaling potential structural shifts in the industry.

Investment Insight: Tan’s leadership marks a critical inflection point for Intel as it seeks to reclaim competitiveness in chip manufacturing and AI. While the stock’s rally reflects investor optimism, execution risks remain high. Intel’s turnaround hinges on strategic clarity—whether it doubles down on its foundry business or pivots toward a leaner, design-focused model. Investors should watch for Tan’s early moves, particularly regarding Intel’s manufacturing division and AI strategy, as key indicators of long-term viability.

Market price: Intel Corp (INTC): USD 20.68

Taiwan Faces Currency Pressures Amid Stock Outflows, Trade Risks

Taiwan’s central bank is bracing for further currency interventions as foreign investors continue to pull capital from its stock market, exacerbating downward pressure on the Taiwan dollar. The bank sold a record $16.4 billion in 2024 to stabilize the currency, which fell more than 6% against the US dollar last year and remains under strain. Trade uncertainties linked to Trump’s policies and a cooling AI-driven rally in Taiwan Semiconductor Manufacturing Co. (TSMC) have contributed to the worst foreign investor selloff on record. TSMC shares, which dominate Taiwan’s benchmark index, have dropped over 9% this year, amplifying concerns over capital flight.

Investment Insight: Taiwan’s growing reliance on foreign capital makes its markets particularly vulnerable to global risk sentiment. With TSMC’s dominance in AI-related investments, its stock performance directly influences Taiwan’s currency stability. Investors should monitor central bank interventions and policy shifts, particularly if inflation pressures force rate adjustments. While Taiwan remains a key player in global semiconductors, capital outflows suggest near-term volatility, making a selective approach to Taiwanese equities prudent.

JPMorgan Signals End of US Equity Correction

JPMorgan strategists suggest the worst of the US equity correction may be over, citing credit markets that imply a lower risk of recession than equities or rate markets. While small caps are pricing in a 50% chance of a downturn, credit markets suggest only a 9% to 12% probability. The S&P 500 has dropped nearly 9% from its February peak, driven by quant fund adjustments rather than fundamental economic weakness. Despite recent equity downgrades from Goldman Sachs and Citigroup, JPMorgan sees potential support from ETF inflows and institutional rebalancing, which could inject up to $135 billion into markets.

Investment Insight: JPMorgan’s analysis highlights a disconnect between equity market fears and credit market signals, suggesting that recession risks may be overstated. With ETF inflows holding steady and institutional rebalancing on the horizon, near-term volatility could present buying opportunities. Investors should watch for stabilization in small caps and tech stocks as potential indicators of a broader market recovery.

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Global markets steadied as President Trump’s remarks downplaying recession fears and signaling economic growth initiatives buoyed sentiment. Asian stocks traded narrowly, with US and European futures rising, aided by optimism over a proposed 30-day Ukraine-Russia truce. However, inflation, Fed policy, and trade tensions, including Trump’s tariffs and EU retaliation, continue to weigh on outlooks.

Meanwhile, China’s retail investors are driving a tech-led stock rally, with equity mutual fund inflows surging to their highest since 2021, though elevated valuations pose risks. Tesla shares, down 52% from December highs, remain under pressure from weak demand and growing investor skepticism, despite a brief rebound following Trump’s purchase of a Model S.

In a surprise move, Musk’s SpaceX and Ambani’s Reliance Jio announced a Starlink deal targeting India’s growing satellite internet market, pending regulatory approval. Oil prices also climbed as the US cut global surplus forecasts, though geopolitical tensions and demand concerns keep markets volatile.

Stock Selloff Eases as Trump Comments Buoy Markets

Global markets steadied following remarks by President Donald Trump that downplayed recession fears and signaled economic growth initiatives. Asian stocks traded in a narrow range, while US and European futures climbed. Relief over a proposed 30-day truce between Ukraine and Russia added to the market’s optimism. However, concerns linger over inflation, Federal Reserve policy, and heightened volatility.

Trump’s tariffs on steel and aluminum imports, coupled with retaliatory measures from the EU, remain a key headwind for global trade, with US equities nearing correction territory. Meanwhile, Cathay Pacific reported stronger-than-expected profits, though trade conflicts cloud its cargo outlook.

Investment Insight

While Trump’s reassurances offered temporary relief, persistent inflation and geopolitical tensions suggest continued market volatility. Investors should maintain a cautious approach, focusing on defensive sectors and monitoring inflation data closely for signs of sustained pressure.

China’s Retail Investors Fuel Stock Market Rally

China’s retail investors are pouring into equity mutual funds, with inflows reaching 56.4 billion yuan ($7.8 billion) in the first two months of 2025—a fivefold increase year-on-year and the highest since 2021. Buoyed by optimism over domestic tech breakthroughs and bullish signals from Beijing’s National People’s Congress, Chinese equities have outperformed global peers, with the STAR50 Index climbing over 9% and Hong Kong’s tech gauge soaring nearly 25%.

However, interest in mixed-allocation and bond-focused funds has waned, signaling a clear shift toward riskier assets amid rising confidence in China’s tech-driven growth.

Investment Insight

China’s tech sector rally underscores the importance of tracking innovation-driven markets. While the gains may lure investors, elevated valuations and geopolitical risks could temper long-term returns. Diversifying exposure across sectors may mitigate volatility.

Tesla’s Freefall Shakes Even Its Most Loyal Fans

Tesla shares have plunged 52% from their December highs, with even its staunchest supporters stepping back amid mounting concerns over weak sales, poor sentiment, and Elon Musk’s growing political distractions. The stock, the S&P 500’s worst performer this year, briefly rebounded 3.8% after President Trump purchased a Tesla Model S in a show of support.

However, Wall Street analysts continue to downgrade price targets, citing deteriorating global demand and overvaluation. Retail investors remain a rare source of support, but doubt is creeping into even the most bullish corners. With no major catalysts in sight, Tesla remains vulnerable to further declines.

Investment Insight

Tesla’s volatility highlights the risks of overreliance on sentiment-driven stocks. While its steep valuation could fuel a sharp recovery, investors should stay cautious and prioritize long-term fundamentals over short-term trading opportunities. Consider diversifying into less volatile sectors.

Market price: Tesla Inc (TSLA): USD 230.58

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Global markets showed signs of stabilization as US equity futures rebounded after Monday’s selloff, with Asian equities trimming losses and optimism around Chinese AI growth boosting Hong Kong stocks. China’s record two-year bond sale this week will test market sentiment amid rising yields and tight liquidity. In South Korea, new FX rules aim to attract foreign inflows, though analysts say structural reforms are needed for long-term stability. Meanwhile, Japan’s slower Q4 growth complicates BOJ rate decisions, while the Panama Canal explores an LPG pipeline to meet rising Asian energy demand. Investors should stay cautious, diversify, and watch for selective opportunities.

Asia Stock Selloff Eases, Futures Recover

A global stock selloff moderated during Asian trading hours, with US equity futures, Treasury yields, and cryptocurrencies rebounding from earlier declines. The S&P 500 index futures rose 0.3% after steep losses, while Nasdaq 100 and European futures also advanced. Asian equities fell to a five-week low, but Hong Kong and Chinese stocks trimmed losses amid hopes for government stimulus. Mainland Chinese investors continued buying Hong Kong stocks, buoyed by optimism around AI-driven growth. Meanwhile, US markets suffered sharp losses Monday, with the S&P 500 down 2.7% and megacaps like Tesla plunging 15%. Investors remain cautious, citing geopolitical tensions, economic uncertainty, and hawkish central bank policies.

Investment Insight: The selloff signals a shift to risk-averse sentiment, but opportunities may exist in oversold Asian markets like Hong Kong and China. Diversification and selective entry into resilient sectors are key as global uncertainty persists.

China Plans Record Two-Year Bond Sale Amid Market Turmoil

China’s debt market faces mounting pressure as the government prepares to auction a record 167 billion yuan ($23 billion) in two-year bonds this Friday. The move comes during a worsening bond selloff, driven by the People’s Bank of China’s (PBOC) reluctance to ease monetary policy, tight liquidity, and optimism in Chinese equities. Yields on two-year bonds have surged 50 basis points this year, hitting their highest since October, raising concerns about weak demand and further losses. The auction will serve as a key market sentiment indicator, as China’s annual new government bond issuance climbs to a record 11.86 trillion yuan amid rising fiscal deficits.

Investment Insight: Rising yields signal heightened risk in China’s fixed-income market. Investors should monitor auction results closely as a barometer of sentiment, while remaining cautious of further bond market volatility. Diversification across asset classes may help mitigate risk.

South Korea’s New FX Rules Highlight Need for Structural Reform

South Korea has introduced measures to boost foreign currency inflows, including raising FX derivatives’ hedging limits, easing “Kimchi” bond regulations, and streamlining tax paperwork for foreign investors. While these changes may provide short-term market stability, analysts warn they won’t address deeper imbalances in Korea’s financial system. The won was Asia’s worst-performing currency in 2024, falling over 12% against the dollar, with foreign investors cutting their stock holdings as the Kospi dropped 9.6%. Experts argue that structural reforms, including stronger industrial and corporate policies, are critical for attracting sustainable foreign investment.

Investment Insight: The new measures offer limited relief for Korea’s markets. Investors should remain cautious about the won and consider broader macroeconomic trends before increasing exposure to Korean assets. Long-term opportunities may depend on meaningful structural reforms.

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Asian markets brace for a weak open amid global economic uncertainty, with US equities and Treasury yields under pressure as the Fed may cut rates by May. Foxconn unveiled “FoxBrain,” its first large language model, aiming to enhance manufacturing with AI while boosting Nvidia’s GPU demand. Japan’s 10-year bond yield hit a 15-year high on BOJ rate hike expectations, signaling tighter monetary policy. Meanwhile, China launched a $138 billion high-tech fund to drive AI and emerging industries, alongside measures to boost domestic consumption. Trade tensions escalated as China imposed tariffs on US farm goods, further straining relations with the US.

Asian Equities Poised for Weak Open Amid Economic Concerns

Asian markets are set for a subdued start as risk sentiment faltered globally. S&P 500 and Nasdaq 100 futures dropped 0.5%, while Treasury yields declined as investors sought safer assets. The US economy faces growing uncertainty, with tariffs, rising unemployment, and weak Chinese economic data contributing to a cautious outlook. Short-dated Treasuries rallied on expectations the Fed might cut rates by May to counter economic headwinds. Meanwhile, European futures pointed to gains, supported by fiscal policy shifts in Germany.

Investment Insight: Global markets are grappling with heightened uncertainty, favoring defensive assets like short-term Treasuries. Investors may consider diversifying portfolios with safe-haven assets and maintaining a cautious stance on riskier equities.

Foxconn Unveils First Large Language Model, “FoxBrain”

Foxconn has launched its first large language model, “FoxBrain,” which aims to enhance manufacturing and supply chain management. Built using Meta’s Llama 3.1 architecture and trained on 120 Nvidia H100 GPUs in just four weeks, the model is optimized for traditional Chinese and Taiwanese language styles. While slightly behind China’s DeepSeek distillation model, FoxBrain achieves near-world-class performance. Initially designed for internal use, its capabilities include data analysis, decision-making, and code generation. Foxconn plans to collaborate with partners, expand applications, and promote AI across industries. Further details will be revealed at Nvidia’s GTC conference.

Investment Insight: Foxconn’s venture into AI-powered manufacturing could streamline operations and bolster its competitive edge. Nvidia’s integral role in training FoxBrain also highlights the growing demand for high-performance GPUs, reinforcing its position in the AI hardware market.

Japan 10-Year Yield Hits 2008 High Amid BOJ Rate Hike Expectations

Japan’s 10-year government bond yield surged to 1.575%, its highest level since 2008, fueled by the fastest base pay gains in over three decades and expectations of further Bank of Japan (BOJ) rate hikes. While the BOJ is likely to hold rates steady at its May meeting, market pricing suggests an 85% chance of a hike by July and certainty by September. Sluggish demand at a recent five-year debt auction reflects growing sentiment that yields will continue climbing. JPMorgan raised its year-end forecast for Japan’s 10-year yield to 1.7%, with some predicting it could reach 2%.

Investment Insight: Rising Japanese yields signal tightening monetary policy, providing opportunities in JGBs but potentially pressuring equity markets. Investors should monitor BOJ decisions closely, as further hikes could reshape the global fixed-income landscape.

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Global markets are on edge as geopolitical and policy uncertainties weigh heavily. Asian and European stocks mirrored US declines, while Bitcoin slid 5.7% following details of a new US Strategic Bitcoin Reserve ahead of the White House crypto summit. China’s energy imports fell amid oversupply and slowing demand, and its metals imports also weakened, reflecting lower industrial activity. Oil is set for its steepest weekly drop since October due to tariff uncertainty and rising OPEC+ output. Meanwhile, antimony prices surged nearly 300% as defense demand soars, exposing a critical supply gap. Investors face heightened volatility across sectors and should adopt a cautious, diversified approach while monitoring regulatory developments and macroeconomic signals.

Asian and European Stocks Follow US Declines

Asian stocks dropped sharply, mirroring declines in US markets, as geopolitical uncertainty and shifting US tariff policies under President Trump roiled investor confidence. Japan’s Nikkei-225 fell over 2%, while European futures retreated and the S&P 500 struggled to stabilize. The dollar index extended its losing streak to a fifth session, and Bitcoin dropped 5.7% after underwhelming details of a US strategic reserve plan. Despite Trump delaying tariffs on Mexican and Canadian goods under NAFTA, markets remained jittery amid unclear policy directions.

In the US, nonfarm payroll data and comments from Fed Chair Jerome Powell are awaited for clues on the economy’s trajectory. Meanwhile, Treasury yields edged higher, and oil is set for its steepest weekly decline since October, while gold rose as a safe haven.

Investment Insight: Heightened volatility driven by geopolitical and policy uncertainties suggests a cautious approach. Diversify into defensive sectors like utilities or gold while monitoring labor market data and central bank signals for interest rate expectations.

China’s Energy Imports Decline Amid Supply Glut and Weak Demand

China’s energy imports fell sharply in early 2025, with crude oil imports dropping 5% year-over-year and natural gas imports down 7.7%. The decline follows last year’s record shipments of coal and gas, which left an oversupply in the market. A mild winter, faltering industrial demand, and a slowing economy further dampened energy consumption. Liquefied natural gas (LNG) imports hit a five-year low, as traders redirected cargoes to higher-priced European markets. Meanwhile, coal imports rose modestly by 2.1% but remain below peak levels due to oversupply.

Metals imports also weakened, with copper falling 7.2% and iron ore down 8.4%, reflecting lower industrial demand and disruptions in Australian supply. Elevated port inventories and China’s plans to cut steel output are expected to further suppress import levels.

Investment Insight: China’s slowing energy and metals demand signals potential headwinds for commodity markets. Investors should monitor China’s industrial activity closely and consider exposure to markets benefiting from higher European LNG prices or alternative energy sources.

Antimony Shortage Deepens as Defense Demand Soars

A global shortage of antimony, a key metal in munitions, threatens to escalate as the US and Europe replenish depleted stockpiles used in Ukraine. Prices have surged nearly 300% in the past year, driven by China’s export restrictions and heightened demand from defense industries. Antimony, essential for bullet cores, explosives, and flame retardants, faces a production gap of about 40,000 tons annually.

China and Russia dominate 87% of global supply, but new Western sources are emerging. Australia’s Larvotto Resources plans to open a major antimony mine next year, potentially supplying 7% of global demand. Meanwhile, the US Defense Department has backed a domestic mine project in Idaho to reduce reliance on foreign sources.

Investment Insight: Rising antimony prices and geopolitical tensions present opportunities in defense-related supply chains and Western mining ventures. Investors should watch for projects aimed at reducing dependence on Chinese and Russian materials.

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Global markets are on edge as bond yields surge, with Japan’s 10-year yields reaching 1.5%, the highest since 2009, and German bunds seeing their steepest rise since 1990. Meanwhile, Asian equities gained, driven by optimism over Chinese economic support and delayed US auto tariffs, with Hong Kong’s Hang Seng China Enterprises Index jumping 3.3%. In corporate news, Rio Tinto announced a $1.8 billion Pilbara iron ore expansion, Eutelsat shares soared over 500% amid Starlink concerns in Ukraine, and Alibaba’s stock surged 7.6% after unveiling a cutting-edge AI model. US tech stocks struggled, while oil rebounded and gold held steady near record highs. Markets remain highly sensitive to inflation, fiscal spending, and geopolitical developments.

Global Bond Selloff and Asian Market Gains

A global bond selloff intensified Thursday, with Japanese 10-year yields reaching 1.5%, their highest since 2009, as inflation pressures and borrowing costs rise. German bunds saw their sharpest yield surge since 1990, driven by concerns over expanded government spending. The euro rallied ahead of the ECB’s policy meeting, where a rate cut is widely expected. Meanwhile, Asian equities climbed, spurred by optimism over potential Chinese economic support and a delay in US auto tariffs on Mexico and Canada. Japan, South Korea, and Hong Kong indexes posted gains, with the Hang Seng China Enterprises Index jumping 3.3%.

US tech stocks struggled, with Marvell Technology and Broadcom slipping on AI-related revenue concerns. Oil ticked up from six-month lows, and gold held steady near record highs. Markets remain sensitive to geopolitical developments, growth forecasts, and inflationary pressures.

Investment Insight:

The bond selloff signals rising risks in fixed-income markets, with yields drawing upward pressure from inflation and fiscal spending. Investors may consider diversifying into equities or commodities, particularly in regions like Asia where growth momentum appears stronger.

America’s Shift from Europe Sparks Economic Opportunities

With the US distancing itself from Europe militarily and economically, the EU faces urgent pressure to bolster its defense capabilities independently. This shift, coupled with rising military spending, could fuel economic growth if Europe prioritizes domestic innovation and production of advanced military technologies. Increased spending on locally made armaments could boost GDP, create jobs, and generate technological spillovers, much like past defense-driven innovations such as GPS and the internet. However, Europe’s fragmented defense industry and reliance on imports remain hurdles, with experts estimating it could take a decade to achieve self-sufficiency.

Investment Insight:

Rising defense budgets in Europe may unlock opportunities in local defense and dual-use tech sectors. Investors could benefit by focusing on companies poised to lead innovation or consolidate fragmented industries to capitalize on this structural shift.

Rio Tinto Commits $1.8 Billion to Pilbara Iron Ore Expansion

Rio Tinto announced a $1.8 billion investment to develop the Brockman Syncline 1 iron ore project in Western Australia’s Pilbara region. With approvals secured, the project is set to begin production by 2027, a year ahead of schedule. The expansion extends the life of the Brockman hub, which produced 43 million tons of iron ore in 2024, and reinforces Rio Tinto’s focus on Pilbara’s profitability amid its broader shift toward copper for renewable energy needs.

Investment Insight:

Rio Tinto’s Pilbara investment highlights the enduring value of iron ore in its portfolio. Investors should watch for opportunities in companies tied to long-term iron ore demand, while monitoring Rio Tinto’s pivot to copper to capitalize on the green energy transition.

Market price: Rio Tinto Ltd (ASX: RIO): AUD 114.92

Eutelsat Stock Soars Amid Starlink Concerns in Ukraine

French satellite firm Eutelsat’s shares surged over 500% this week, fueled by fears that Ukraine’s access to Starlink, critical for military communications, could be disrupted as US aid to Kyiv falters. Eutelsat, which merged with Starlink competitor OneWeb in 2023, now offers low-Earth orbit satellite services and is in talks with the EU to address Ukraine’s internet needs. Despite its rapid stock gains, Eutelsat’s satellite capacity remains a fraction of Starlink’s. Meanwhile, Europe is ramping up defense spending, with leaders proposing an $840 billion collective budget.

Investment Insight:

Eutelsat’s stock boost highlights investor optimism around European alternatives to US technology. Watch for opportunities in European defense and satellite firms as the region seeks greater autonomy in critical infrastructure.

Market price: Eutelsat Group (ETL.PA): EUR 7.84

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Markets rallied as U.S. Commerce Secretary Howard Lutnick hinted at tariff rollbacks, boosting global equities, while Hong Kong stocks surged on China’s 5% growth target and Germany’s significant infrastructure spending lifted the euro. President Trump announced plans to revive U.S. shipbuilding and hailed a $22.8 billion BlackRock-led deal to acquire key Panama Canal ports, reducing Chinese influence in strategic infrastructure. Meanwhile, China plans to cut steel output to address oversupply and aid carbon goals, pressuring iron ore prices, while gold dipped slightly from near-record highs as trade tensions spurred haven demand. Investors face volatile markets driven by geopolitics and shifting trade policies.

Markets Rally on Tariff Rollback Hopes

Global markets rebounded as U.S. Commerce Secretary Howard Lutnick hinted at potential tariff rollbacks, fueling gains in U.S. and European equity futures. Hong Kong stocks surged after China reaffirmed its 5% growth target for 2025 and signaled further economic stimulus. Meanwhile, Germany’s historic decision to unlock significant defense and infrastructure spending lifted the euro to a three-month high but triggered a global bond selloff. Markets remain volatile as President Trump defended tariffs, calling for adjustments to trade policies, while traders anticipate clarity on Mexican and Canadian tariff relief.

Investment Insight: Markets are pricing in optimism around trade deals, but swings highlight the fragility of sentiment. Cautious positioning in equities and hedging against currency moves may be prudent amidst ongoing geopolitical and tariff uncertainties.

Trump Pushes for U.S. Shipbuilding Revival

President Donald Trump announced plans to revive U.S. shipbuilding for commercial and military vessels in an effort to counter China’s dominance in the industry. Speaking on Capitol Hill, Trump proposed creating a White House shipbuilding office and offering tax incentives to rebuild the sector, which has been overshadowed by China’s production of over half of the world’s merchant vessels. The administration is also preparing to impose fees on Chinese-built ships and cranes entering the U.S. to boost domestic competitiveness. Additionally, Trump revealed plans to “reclaim” the Panama Canal, as a BlackRock-led consortium acquires key ports near the waterway from a Hong Kong conglomerate.

Investment Insight: While efforts to revitalize U.S. shipbuilding could create opportunities in defense and infrastructure sectors, high costs and global competition present significant challenges. Investors should monitor potential shifts in trade and industrial policies.

China to Cut Steel Output to Address Glut and Boost Profits

China is set to mandate steel production cuts to tackle oversupply and restore profitability in its struggling steel sector, as announced at the National People’s Congress. Though no specific targets were disclosed, analysts speculate output could be reduced by as much as 50 million tons annually. This marks the first official proposal for mandatory cuts by the National Development and Reform Commission, signaling a new wave of supply-side reforms nearly a decade after similar measures under President Xi Jinping. The move comes as steel exports hit a nine-year high of 110 million tons in 2024, prompting global backlash and increased tariff scrutiny, particularly from the U.S. Lower production is also expected to aid China’s carbon reduction goals. The announcement weighed on iron ore prices, with futures falling 1.6% in Singapore, while steel prices in Shanghai also declined.

Investment Insight: Steel production cuts could alleviate oversupply and stabilize prices, but weaker-than-expected infrastructure spending signals limited growth for industrial metals. Investors in commodities should prepare for short-term price volatility.

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Global markets face turbulence as U.S. tariffs on Canada, Mexico, and China trigger volatility in equities, oil, and currencies, with China retaliating on U.S. agricultural imports. Oil prices fell further as OPEC+ plans to boost output, while TSMC announced a $100 billion investment in U.S. chipmaking, enhancing its AI supply chain. In the UK, shop prices rose at their fastest pace in a year, driven by food inflation and rising retailer costs, prompting warnings of further price hikes. Meanwhile, Seven & i shares dropped 7.8% amid speculation it may reject a $47 billion buyout offer from Couche-Tard, highlighting Japan’s shifting stance on foreign capital.

Global Markets Stagger as Tariffs and Trade Uncertainty Take Center Stage

Global markets reeled as U.S. tariffs on Canada, Mexico, and China took effect, triggering significant volatility across equities, commodities, and currencies. The S&P 500 fell 1.8%, while oil slumped to a three-month low amid signs of slowing U.S. growth. China retaliated with tariffs of up to 15% on U.S. agricultural imports like soy, pork, and beef, while its equities showed resilience, signaling room for negotiation. Emerging-market currencies and the Canadian and Mexican pesos slipped as geopolitical tensions escalated. Meanwhile, Beijing’s upcoming National People’s Congress is expected to unveil economic stimulus measures to combat deflation and bolster growth. Cryptocurrencies remained under pressure, with Bitcoin extending losses, and OPEC+ stuck to plans to revive oil production despite price declines.

Investment Insight

Heightened global trade tensions and slowing U.S. growth signal caution for equities in the short term. Look to defensive assets like gold or explore opportunities in resilient Asian markets such as China and Japan, which may benefit from forthcoming stimulus measures.

Oil Slumps as Tariffs Bite and OPEC+ Eyes Output Hike

Oil prices continued their slide, with Brent nearing $71 a barrel and WTI hovering around $68, as the Trump administration’s tariffs on Canada, Mexico, and China took effect. Beijing retaliated with levies on U.S. agricultural products, intensifying trade war fears. Meanwhile, OPEC+ announced plans to increase oil production in April after months of delays, adding to concerns of a supply surplus. Analysts warn that the combination of trade tensions and higher output could further weaken global demand for crude.

Investment Insight

Investors should brace for continued oil price volatility as trade tensions and oversupply fears weigh on the market. Consider energy sector exposure selectively, focusing on companies with strong balance sheets and resilience in low-price environments.

TSMC Commits $100 Billion to US Chipmaking in Boost for Trump’s Domestic Manufacturing Push

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading AI chip producer, announced an additional $100 billion investment in U.S. plants, further expanding its domestic presence to support President Donald Trump’s goal of bolstering American manufacturing. The new spending, which builds on $65 billion in prior commitments, will establish multiple advanced chip facilities, creating thousands of high-tech jobs. The announcement comes as TSMC aims to anchor a resilient AI supply chain in the U.S., with key partners like Nvidia and Apple relying on its output. While critics question the scale of the investment, analysts suggest political pressure, rather than tariffs, drove TSMC’s decision.

Investment Insight

TSMC’s U.S. expansion underscores the strategic importance of semiconductors and AI technology. Investors may focus on companies benefiting from a strengthened U.S. chip supply chain, including Nvidia and AMD, while monitoring broader geopolitical implications for the sector.

Market price: Taiwan Semiconductor Manufacturing Co Ltd (TPE:2330): TWD 1,000.00

Shop Prices Surge as Food Costs and Retailer Pressures Mount

Shop prices in the UK rose 0.4% between January and February, the sharpest monthly increase in a year, driven by price hikes for staples like butter, cheese, eggs, and bread. Food prices climbed 2.1% year-on-year, and the British Retail Consortium (BRC) warns they could hit 4% later this year. Rising global coffee costs, a £7 billion hike in retailer costs from the autumn Budget, and a new packaging levy are expected to fuel further inflation. Major retailers like Tesco and M&S cautioned that these pressures may lead to store closures and job cuts, while economists question whether the government can mitigate the impact amidst limited fiscal flexibility.

Investment Insight

Higher food inflation and rising retailer costs could squeeze margins for UK supermarkets and high-street chains. Investors might consider defensive consumer staples or discount retailers better positioned to weather inflationary pressures.