Geopolitical Tensions Jolt Global Markets Amid Economic Uncertainty

Global markets remain jittery as geopolitical tensions escalate, notably in Gaza and Ukraine. Economic uncertainties persist, with Asian stocks subdued and gold prices near record highs. Investors are cautious amid ongoing trade policy concerns, awaiting central bank decisions from Japan and the U.S. for clearer direction.

Asian stock markets showed minimal movement on Wednesday, with gold almost reaching record highs amidst ongoing economic concerns and geopolitical tensions. The yen decreased slightly before the Bank of Japan's policy meeting.

The euro held close to its five-month peak achieved after Germany's parliament backed a substantial spending plan. However, geopolitical tensions increased sharply following Israeli airstrikes on Gaza, causing investor anxiety.

Russian President Vladimir Putin agreed to pause attacks on Ukrainian energy sites but stopped short of endorsing a full ceasefire, leaving investor sentiment fragile. Attention is also on upcoming U.S. and Japanese central bank decisions amid persistent trade policy uncertainty.

(With inputs from agencies.)