Key Takeaways
- Israeli Prime Minister Benjamin Netanyahu declared Israel's intention to take control of all of Gaza, coinciding with satellite images revealing a significant Israeli troop and equipment buildup near the Gaza border, signaling a possible new ground invasion.
- U.S. gold futures surged to an all-time high of $3,534.10 per ounce, as a new Financial Times report indicated that imports of one-kilogram bullion bars are now subject to US tariffs, driving up premiums in New York.
- President Trump has ordered regulators to review "debanking" practices and opened U.S. retirement plans to cryptocurrency and private equity investments, alongside nominating Stephen Miran to the Federal Reserve Board.
- Japan's government bond yields saw increases, with the 20-year JGB yield rising by 0.5 basis point to 2.52% and the 30-year JGB yield edging up 1 basis point to 3.07%, tracking declines in U.S. Treasurys.
- The Trump administration has agreed to amend a tariff order, leading to Japan receiving a refund of wrongfully collected duties, while Seoul shares opened lower amid foreign selling and ongoing tariff concerns.
Geopolitical Tensions Escalate in Middle East and Beyond
Geopolitical tensions are a dominant theme as Israeli Prime Minister Benjamin Netanyahu stated Israel's plan to take control of all of Gaza. This declaration follows satellite images cited by U.S. officials, which reveal a substantial Israeli troop and equipment buildup near the Gaza border, indicating a potential new ground invasion.
In other diplomatic developments, President Trump announced his intention to meet with Russian President Vladimir Putin, despite the Kremlin's refusal to engage in talks with Kyiv. Additionally, Trump is set to host Armenia and Azerbaijan for a historic "Peace Signing" event, aiming to resolve long-standing regional conflicts.
US Tariff Policies Impact Global Trade and Gold Markets
The Trump administration's tariff policies continue to reshape global trade dynamics. U.S. gold futures have surged to an all-time high of $3,534.10 per ounce, driven by a new Financial Times report that one-kilogram bullion bar imports are now subject to US tariffs, causing premiums to jump in New York.
In a significant development for trade relations, the Trump administration has agreed to amend a tariff order, ensuring Japan will receive a refund for wrongfully collected duties, as confirmed by envoy Akazawa. This comes as Japan stated the U.S. would correct a tariff deal "mistake". Despite these adjustments, Seoul shares opened lower due to foreign selling and lingering tariff concerns. Meanwhile, China’s chipmakers are anticipated to experience only a small impact from Trump’s new 100% tariff on imports, according to CLSA.
Trump Administration Unveils Sweeping Domestic Policy Changes
Domestically, the Trump administration is enacting broad policy changes across several sectors. President Trump has directed regulators to review "debanking" practices, a move aimed at scrutinizing financial institutions' decisions to deny services. Furthermore, he has opened U.S. retirement plans to investments in cryptocurrency and private equity, potentially broadening investment avenues for millions.
In a key appointment, President Trump intends to nominate Stephen Miran to the Federal Reserve Board, a decision that could influence future monetary policy. Concurrently, the President has ordered a major federal law enforcement surge into Washington, D.C., to address and crack down on violent crime in the capital.
Japanese Bond Yields Rise Amid Global Market Shifts
Japanese government bond (JGB) yields have seen an uptick, mirroring trends in U.S. Treasurys. The yield on the 20-year JGB increased by 0.5 basis point to 2.52%, while the 30-year JGB yield edged up 1 basis point to 3.07%. The Japan 5-Year JGB Yield also rose by 2.5 basis points to 1.05%. This movement suggests a broader market adjustment to interest rate expectations.
Commodity Markets See Mixed Movements
In commodity markets, gold is consolidating after its recent surge to an all-time high, with the new Fed Governor nominee potentially offering support. Meanwhile, oil prices edged lower amid easing supply-disruption worries, reflecting a more stable outlook for global energy supplies.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.