Global markets opened the week struggling to find direction as trade tensions between Washington and Beijing once again rattle investors.
On Sunday night, President Donald Trump said relations with China “will all be fine,” easing concerns he would move ahead with what he called a “massive increase of tariffs” after calling the Chinese liars on Friday. Trump’s earlier threats had wiped out roughly $2 trillion in global market value after a historically brutal sell-off across stocks, fiat, and crypto.
By the Sunday night session, the Dow Jones Industrial Average futures climbed 358 points, or 0.8%, while S&P 500 and Nasdaq-100 futures rose 1% and 1.2%, respectively.
It would seem that the Wall Street trading floor is now treating every word out of the White House like a potential trigger, not sure if another escalation in the trade war could follow in the days ahead.
Asian and European markets move unevenly as trade jitters grow
Over in Asia, things were far from calm. Australia’s S&P/ASX 200 dropped by 0.84% to 8,882.80, falling 75.50 points, while South Korea’s Kospi slid by 2.35%, and the smaller Kosdaq plunged by 2.24%.
Futures for Hong Kong’s Hang Seng Index traded lower at 24,968, compared with its previous close of 26,290.32. The index later settled at 25,889.48, down by 1.52%, losing 400.84 points, while Shanghai’s Composite Index edged down 0.19% to 3,889.502, slipping 7.526 points.
Japan’s market stayed shut for the holidays, providing a brief pause from the regional turbulence. India’s Nifty 50 fell by 0.23% to 25,227.35, losing 58 points, and the Nikkei 225 had already dropped 491.64 points, or 1.01%, to 48,088.80 before the closure.
Across Europe, the tone was steadier. The Stoxx 600 climbed by 0.5% at mid-morning in London, led by a 1.9% rebound in the Basic Materials Index, which had plunged by 2.5% on Friday. The FTSE 100 was up by 0.2%, Germany’s DAX and France’s CAC 40 each gained 0.6%, and Italy’s FTSE MIB advanced 0.7%.
Auto stocks saw light buying even amid legal pressures, as Renault surged by 1.8%, Stellantis jumped by 3.9%, and Mercedes-Benz added 1% as the companies faced a High Court case in London over alleged use of “defeat devices” to cheat diesel emissions tests.
Precious metals saw renewed heat. Spot gold surged by 1.4% to $4,075.24 per ounce, reaching a new record of $4,179/oz, while U.S. gold futures for December rose by 2.4% to $4,094.70.
Silver rallied by 1.5% to $51.03/oz, hitting an all-time high of $51.70/oz amid tight supply and investor demand. Goldman Sachs analysts projected a continued rally for silver in the medium term, though the analysts warned about short-term volatility.
Bank of America took a bolder stance Monday, hiking its 2026 forecast for gold to $5,000/oz and for silver to $65/oz, marking the first major bank to predict such levels. Platinum surged by 3.4% to $1,641.21, and palladium rose by 2.6% to $1,441.97, rounding out a solid day for metals.
Dollar strengthens while Bitcoin shows resilience after steep drop
Fiat markets stayed active. The U.S. dollar index ticked up 0.2% to 99.2, recovering from last week’s pullback. The euro slipped by 0.3% to $1.1584, shrugging off French President Emmanuel Macron’s reshuffle that kept Roland Lescure as finance minister in Sebastien Lecornu’s new cabinet.
Japan’s yen weakened sharply as the dollar advanced 0.8% to 152.295, signaling renewed demand for U.S. assets as volatility in equities rose.
In the crypto corner, Bitcoin began stabilizing after Friday’s crash that saw it plunge from $122,000 to $102,000. Despite the carnage, long-term holders appeared unfazed.
Exchange data showed just 6,000 BTC, worth about $688 million, moved onto exchanges in the last three days, suggesting most investors weren’t rushing to sell. That limited inflow showed restraint even as volatility surged after what was the largest single-day liquidation in the history of crypto.
Analysts say if selling pressure builds, Bitcoin could break below $112,500, potentially retesting $110,000, which would erase the recent recovery hopes.
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