The latest tariff dramas drive European stocks and the US dollar down, but gold hits a new high. Japan looks set to cut its sales tax on food, which bond markets aren’t keen on. And China achieves its 5% GDP growth target for 2025.
In our Deep-Dive interview, ANZ Commodities Strategist Soni Kumari says silver’s price has been more volatile than gold, partly because 70% is mined as a by-product of gold, copper and zinc.
5 things to know in 5 minutes:
European stocks fell 1.7% overnight, gold hit new highs and safe haven currencies other than the US dollar rose after Donald Trump threatened tariffs against European nations supporting Greenland’s desire to stay with Denmark. They in turn responded with threats to tariff up to 93 billion euros worth of imports from the United States, says ANZ Economist in London Henry Russell.
Japanese Government bond prices sold off sharply yesterday, pushing the 30 year yield up 13 basis points to a new record high 3.61%. That was after Japan’s PM Sanae Takeichi proposed to suspend an 8% sales tax on food for two years, says Henry.
China yesterday reported GDP growth in the December quarter of 4.5% from a year ago, which was the slowest in three years, but it meant the full calendar 2025 growth rate was 5%, bang on the Government’s target, says ANZ’s Chief Economist for Greater China Raymond Yeung.
Raymond says a lack of fixed asset investment in the December quarter figures was notable, especially for China.
Henry says the Bank of Japan will also be watching the election and the suspension of the sales tax, but still likely to hike again in April.
Cheers,
Bernard.
Catch you tomorrow with a deep-dive into China’s changing economy with Raymond Yeung, in particular how heavy AI use has improved productivity, but left a youth unemployment rate of 16.9%.
