Yen Stabilizes Near Lows as Japan Signals Readiness to Intervene Amid Dollar Weakness 
UBS Warns of Short-Term Risks as Precious Metals Rally to Record Highs 
BOJ Governor Signals Gradual Rate Hikes as Japan’s Inflation Nears 2% Target 
US and Japan Fast-Track $550 Billion Strategic Investment Initiative 
U.S. Stocks Rally to Record Highs as AI Rebound Fuels Holiday-Shortened Session 
Asian Stock Markets Trade Flat as Holiday Liquidity Thins and BOJ Minutes Watched 
U.S. Dollar Slips as Yen Finds Support on Intervention Signals and Geopolitical Risks Rise 
IMF Reaches Staff-Level Agreement With Egypt, Opening Path to $3.8 Billion in Funding 
Asian Stocks Rise as Wall Street Tech Rally Lifts Markets, Yen Slumps Despite BOJ Rate Hike 
China’s Power Market Revamp Fuels Global Boom in Energy Storage Batteries 
Asian Markets Rise as AI Rally Caps 2025, Gold and Silver Hit Record Highs 
Oil Prices Edge Higher as Strong U.S. Growth and Supply Risks Support Market 
Japan Plans $189 Billion Bond Issuance as Record Budget Signals Expansionary Fiscal Policy 
German Exports to the U.S. Decline Sharply as Tariffs Reshape Trade in 2025 
BOJ Minutes Reveal Growing Debate Over Interest Rate Hikes and Inflation Risks 
Global Markets Rise as Tech Stocks Lead, Yen Strengthens, and Commodities Hit Record Highs 
European stock markets edged higher on Wednesday as investors remained cautious about economic uncertainties tied to trade tensions and monetary policy moves. By 08:05 GMT, Germany’s DAX rose 0.6%, France’s CAC 40 gained 0.1%, and the UK’s FTSE 100 added 0.2%.
Market sentiment was dampened by U.S. President Donald Trump’s renewed tariff threats. Trump, inaugurated earlier this week, reiterated plans to impose tariffs on EU goods and an additional 10% levy on Chinese imports starting February. European Union Economy Commissioner Valdis Dombrovskis warned of a proportionate EU response, highlighting economic interests at the World Economic Forum in Davos.
Focus at Davos shifted to European Central Bank (ECB) President Christine Lagarde, who hinted at potential rate cuts as growth headwinds persist. ECB policymakers, including Klaas Knot, supported market expectations for near-term monetary easing. The ECB is widely expected to lower rates by 25 basis points next week, the first of several anticipated cuts in 2025.
In corporate news, easyJet reported a smaller operating loss in its first quarter, driven by lower fuel costs and strong travel demand, boosting its shares by 1%. Chocolate maker Barry Callebaut saw lower-than-expected sales due to record-high cocoa prices. Meanwhile, OpenAI, SoftBank, and Oracle announced a $500 billion investment in U.S. AI infrastructure. Netflix reported record subscriber growth, adding optimism to the tech sector.
Oil prices declined, with U.S. crude futures falling 0.5% to $75.43 per barrel and Brent dropping 0.4% to $78.97. The retreat followed Trump’s declaration of a national energy emergency aimed at maximizing U.S. energy production and rolling back environmental protections.
Investors remain watchful amid global economic headwinds and geopolitical developments impacting trade, energy, and technology sectors.
