Global Markets Jitter as Trade Tensions and Currency Swings Dominate

Traders mark milestones since COVID and Trump's return to office, impacting markets worldwide. Key events include a strong yen, record-high gold nearing $3,000 per ounce, and concerns over potential trade wars. European stocks edge up, while U.S. markets face pressure from tariff threats and geopolitical tension.

Traders are observing significant milestones as they mark five years since COVID-19's market shakeup and a month since Donald Trump's return to the White House, causing global tremors. Gold hit record highs near $3,000 per ounce amid fears of trade wars, while the yen surged on expectations of increased Bank of Japan interest rates.

Financial markets reacted sharply as the Federal Reserve considered pausing its balance sheet drawdown plan, leading to a weakened dollar and stalled stock momentum despite Wall Street's recent highs. European stocks saw modest gains, buoyed by industrial and insurance sectors, as Germany faces a potential government shift.

Additionally, investor anxiety grew following Trump's tariff threats, particularly on pharmaceuticals, semiconductors, and autos. Ukraine's bonds also faced pressure after controversial statements from Trump about Ukraine's leadership, contributing to market volatility and uncertainty in the context of global economic trends.

(With inputs from agencies.)