Today’s global business landscape is dominated by heightening trade tensions, historic highs in the precious metals market, and the start of a pivotal earnings week for major multinational corporations.
1. Trade & Geopolitics: New Tariff Threats
- Trump Targets South Korea & Canada: US President Donald Trump announced a significant hike in tariffs on South Korean imports (autos, lumber, and pharmaceuticals) to 25%, citing delays in ratifying a 2025 trade agreement. This follows a weekend threat of 100% tariffs on Canada if it moves forward with a trade deal with China.
- EU-India Trade Pact: A major breakthrough is expected today as officials from the European Union and India are set to formally announce the conclusion of a landmark Free Trade Agreement (FTA). The deal aims to slash tariffs on cars and strengthen security and energy partnerships.
- US Political Uncertainty: Markets are tracking a potential US government shutdown as Senate Democrats have signaled they may block a funding package unless changes are made to Department of Homeland Security provisions following civil unrest in Minneapolis.
2. Financial Markets: Gold Breaches $5,000
- Historic Commodity Surge: Safe-haven demand pushed gold futures above $5,000 an ounce for the first time in history. Silver also hit record highs, trading near $110 an ounce.
- Wall Street Resilience: Despite geopolitical noise, US indexes (S&P 500, Dow, and Nasdaq) closed higher on Monday as investors braced for “Magnificent Seven” earnings and the Federal Reserve’s interest rate decision on Wednesday.
- Asian Markets Dip: Asian equities, particularly the Kospi (South Korea) and Nikkei (Japan), edged lower this morning in response to the new US tariff threats and a strengthening yen, which pressures Japanese exporters like Toyota.
3. Corporate Earnings & Tech
- Big Earnings Day: A wave of major US companies is reporting quarterly results today, including:
- Transportation/Industrial: Boeing (BA), UPS, Union Pacific (UNP), and General Motors (GM).
- Healthcare/Defense: UnitedHealth Group (UNH) and RTX Corporation.
- AI Scrutiny: Tech investors are positioning ahead of results from Microsoft and Meta (Wednesday) and Apple (Thursday), looking for concrete signs of AI monetization.
- European Banks: Financial shares in Europe rose yesterday in anticipation of earnings reports from Deutsche Bank and Lloyds due later this week.
4. Central Banks & Global Economy
- Federal Reserve: The Fed is holding a closed-door meeting today. While no rate change is expected on Wednesday, traders are looking for hawkish cues following stronger-than-expected US GDP data.
- Hong Kong Hub: The Asian Financial Forum (AFF) opened today in Hong Kong, focusing on “Finance Empowering Business” and promoting the city as a global hub for gold trading.
- IMF Outlook: Recent updates from the IMF maintain a steady global growth projection of 3.3% for 2026, though experts warn that trade protectionism remains the primary “fragility” in the forecast.
5. Today’s Key Events to Watch
- Corporate Reports: Boeing and GM earnings calls.
- Trade Announcements: Official statements regarding the EU-India FTA.
- Central Bank Speak: Any early leaks or signals from the Fed’s ongoing meetings.