Key Takeaways
- Palladium prices fell 3% to $1,783.50 per ounce on Tuesday, marking a notable decline for the precious metal.
- ASEAN has collectively decided against sending observers to Myanmar's upcoming elections, with Malaysia's Foreign Minister stating it is "unlikely" the bloc would agree to such a mission, citing concerns over legitimacy.
- Citigroup (C) has downgraded European equities for the first time in over a year, attributing the shift to worsening relations between Brussels and other factors.
- Seoul shares experienced a downturn late Tuesday morning, ending a remarkable 12-day winning streak, with the Kospi index declining by 0.64% to 4,873.31.
- Progressive civic groups and lawmakers in South Korea are calling for the suspension of joint military drills with the U.S. to foster improved ties with North Korea.
Palladium Prices Retreat Amid Market Volatility
Palladium prices saw a 3% drop on Tuesday, settling at $1,783.50 per ounce. This decline follows recent fluctuations in the market, where the metal had previously shown signs of recovery. On January 19, 2026, palladium had risen to $1,879 per troy ounce, representing a 3.16% increase from the prior day. However, prices had slipped below $1,800 an ounce earlier in January, retreating from a high of $1,950 on January 12.
The precious metal, primarily used in catalytic converters for petrol cars, remains sensitive to supply chain concerns and geopolitical developments. Major producers like Russia and South Africa significantly influence global pricing due to their substantial output. Analysts from Commerzbank had previously forecasted palladium to reach $1,350 per troy ounce by the end of 2026, despite a significant surge in 2025.
ASEAN Declines to Observe Myanmar Elections
The Association of Southeast Asian Nations (ASEAN) has collectively decided not to send observers to Myanmar's elections, which are scheduled to begin in late December 2025 and extend into January 2026. Malaysia's Foreign Minister Mohamad Hasan indicated that it was "unlikely" the regional bloc would agree to deploy an observation mission. This stance was further confirmed by ASEAN Secretary-General Kao Kim Hourn, who stated that there would be no collective ASEAN observation team.
The decision comes amidst widespread international concern, with many viewing the planned elections as a "sham" designed to legitimize the military junta that seized power in 2021. ASEAN leaders have consistently called for a cessation of violence and the initiation of inclusive political dialogue as prerequisites for any legitimate electoral process in Myanmar.
Citigroup Downgrades European Equities
Citigroup (C) has downgraded its outlook on European equities, moving them from "Overweight" to "Neutral" for the first time in over a year. The downgrade is reportedly influenced by worsening relations between Brussels and other contributing factors. This strategic shift by the financial giant highlights growing caution regarding the European market's near-term prospects.
Previous analyses by Citi Research had cited heightened political risk, particularly concerning French parliamentary elections and the widening OAT-Bund yield spread, as key factors. Additionally, narrowing markets, where gains are concentrated in mega-cap growth stocks, and stretched positioning in European banks have been noted as concerns.
Seoul Shares End Winning Streak, Palladium Dips
South Korean equities experienced a correction on Tuesday morning, with the benchmark Kospi index falling 31.35 points, or 0.64 percent, to 4,873.31 in early trading. This decline follows an impressive 12-session winning streak that saw the Kospi close above the 4,900-point level for the first time on Monday, reaching 4,904.66.
Performance among large-cap shares was mixed. Samsung Electronics ((/stock/005930)) slipped by 1.61%, and SK Hynix ((/stock/000660)) lost 2.09%. Conversely, LG Energy Solution ((/stock/373220)) gained 1.51%. In the automotive sector, Hyundai Motor ((/stock/005380)) rose 1.51%, while its affiliate Kia ((/stock/000270)) saw a 1.47% decline. The local currency also weakened, with the won trading at 1,474.65 per US dollar, down 0.95 won from the previous session.
Calls for Suspension of S. Korea-U.S. Military Drills
A coalition of 357 progressive civic and religious groups, alongside 13 lawmakers, has publicly called for the suspension of regular joint military exercises between South Korea and the United States. The groups, including Rep. Lee In-young of the ruling Democratic Party of Korea, held a press conference in Seoul on Tuesday to advocate for the halt of drills and hostilities near the inter-Korean border.
Their appeal is aimed at improving strained ties with Pyongyang and paving the way for peace on the Korean Peninsula. They also urged the government to redefine buffer zones in the air, at sea, and on land to prevent firing drills or drone flights that could compromise the Military Demarcation Line, recalling the spirit of the now-suspended 2018 inter-Korean tensions reduction pact. Previous joint drills were postponed in August 2025 and completed by year-end, a move seen as a diplomatic gesture to ease tensions with North Korea.
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.