US and European Stock Futures Drop Due to Trump’s Tariff – Asia Market Wrap

European and US stock futures dipped, while haven assets such as gold rose as Trump imposed fresh tariffs on eight countries that have blocked his plans to acquire Greenland. The Dollar depreciated versus the majority of its main counterparts.

European equity-index futures fell 1.3%, while S&P 500 contracts fell 0.9%, as trade concerns weighed on markets. Asian markets recovered from earlier losses to trade flat, with South Korea, a benchmark for AI investment, up 1.3%.

Demand for safe havens drove gold up 1.6% to $4,670 per ounce and silver up 3.4%, both reaching new highs. Bitcoin and other cryptocurrencies have retreated. The euro recovered from early losses to trade higher, as Treasury futures rose alongside German and French bond futures. Treasuries will not be traded for cash on Monday due to a holiday in the US.

Traders were also keeping an eye on Japan, where PM Takaichi is scheduled to speak at a press conference later Monday on plans for an election that might take place as early as February 8th.

The yield on 30-year debt surged 10 basis points to 3.58%, the highest level since its inception, while rates on 10- and 20-year notes reached their highest levels since 1999.