Trade Tensions Shake Global Markets as U.S. Dollar Falters

Trade tensions escalate as the U.S. dollar drops to a three-month low amid new tariffs from the U.S., Canada, and China. German parties announce a 500-billion-euro infrastructure fund. Oil prices fall to six-month lows, while markets see mixed reactions globally as investors remain cautious.

Amid escalating trade tensions, the U.S. dollar neared a three-month low against major currencies, trailing a fresh wave of tariffs from the U.S., Canada, and China. Market reactions were varied worldwide, with Hong Kong stocks gaining amid evolving economic forecasts from Beijing, including a sustained 5% growth target for 2025.

Meanwhile, the euro surged to a nearly four-month peak following the announcement of a 500-billion-euro infrastructure fund by German political parties. As oil prices swooped to six-month lows, bitcoin steadied itself around $87,500, showcasing the volatile nature of the week.

Trade tensions continue to stir the markets, with cyclicals leading the sell-off according to Kyle Rodda of Capital.com. American business and consumer uncertainty loom large as investors remain cautious, underscored by fiscal and inflation targets established at China's latest congress sessions.

(With inputs from agencies.)