US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
Dollar Holds Near Two-Month High as Yen Approaches 160 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Trump, Xi Focus on Trade and AI at White House Summit 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
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Oil prices edged higher on Tuesday while the U.S. dollar strengthened as hopes for a breakthrough in reopening the Strait of Hormuz faded, increasing concerns over global energy supply disruptions. Investors also turned cautious ahead of crucial U.S. inflation data that could influence the Federal Reserve’s next interest rate decision.
Brent crude futures climbed 0.7% to $105 per barrel after U.S. President Donald Trump stated that the ceasefire with Iran was “on life support.” Tehran’s response to a U.S. proposal aimed at ending the conflict reportedly showed both sides remain far apart, keeping geopolitical tensions elevated in the Middle East.
Global stock markets weakened as rising oil prices and uncertainty over trade and inflation pressured investor sentiment. S&P 500 futures slipped 0.2%, while South Korea’s KOSPI index dropped 3%, dragging down broader Asian markets. MSCI’s Asia-Pacific index excluding Japan fell 1%, while European futures declined 1%.
Markets are closely monitoring Trump’s scheduled visit to China on Wednesday. Analysts expect limited progress on both Iran-related negotiations and U.S.-China trade discussions. Investors are mainly hoping for stability, with no additional tariffs or export restrictions.
Despite higher energy prices, Wall Street remained relatively resilient overnight, with both the S&P 500 and Nasdaq reaching fresh record closing highs. However, traders are now focused on upcoming U.S. consumer price index data, which is expected to show annual inflation accelerating to 3.7%.
A stronger-than-expected inflation reading could force the Federal Reserve to consider another interest rate hike instead of anticipated rate cuts, potentially increasing volatility across financial markets.
Meanwhile, bond yields continued to rise globally. Japan’s 10-year government bond yield surged to a 29-year high of 2.54%, fueled by expectations of further policy tightening from the Bank of Japan. The U.S. dollar also gained strength, rising to 157.53 yen against the Japanese currency.
