Global markets experienced a week of turbulence driven by geopolitical uncertainties and shifting U.S. policies. Tensions surrounding potential trade deals and surprise announcements have rattled investors, leading to increased volatility. The greenback weakened, registering its most significant weekly drop since June, while safe-haven assets like gold surged, breaking through $4,900 per ounce. European stocks are poised to conclude the week in negative territory for the first time in over a month, and the U.S. rally appears to be losing momentum.
Concerns over U.S. trade tactics and their impact on international relations continue to weigh on market sentiment. The recent focus on Greenland highlighted existing anxieties about Europe’s reliance on U.S. gas and the potential vulnerability of European trade positions. Meanwhile, in Japan, the yield on the 10-year Japanese government bond surged, reaching a 27-year high following Prime Minister Sanae Takaichi’s announcement of a snap election and promises of massive stimulus.
Despite global uncertainties, the U.S. economy continues to show resilience, with revised figures indicating a 4.4% annual growth rate in the third quarter of 2025. However, some sectors, like oil and gas, are becoming increasingly wary of the direction of U.S. policymaking. Looking ahead, the upcoming Federal Reserve meeting will be closely watched, particularly regarding discussions about potential replacements for Chair Jerome Powell, whose term concludes in May. The Bank for International Settlements (BIS) is a global organisation that fosters international monetary and financial cooperation and serves as a bank for central banks. Reuters is a financial news organisation.
