
Oil prices jumped more than 2% after President Trump canceled talks with Iranian officials and signaled possible support for protesters amid escalating unrest in Iran. WTI settled near $60.66 after reaching a high of $61.22 on Tuesday. Brent closed around $64.90 after rising to $65.45 a barrel. Markets are increasingly concerned that the crackdown on protests in Iran could disrupt oil supplies, pushing prices higher.
Precious metals continue advancing higher. Gold held above $4,600 on Tuesday as initial US dollar weakness following CPI data supported prices, despite the dollar later recovering in a risk-averse market. US inflation came in largely as expected, reinforcing expectations that the Federal Reserve will keep rates unchanged in the near term. Gold briefly hit a new record near $4,635 this morning before easing slightly. Ongoing market caution and President Trump’s announcement of immediate 25% tariffs on countries trading with Iran helped limit gold’s pullback, keeping safe-haven demand strong.
The S&P 500, Dow Jones, and Nasdaq closed lower on Tuesday, led by sharp declines in financial stocks after disappointing investment banking results from JPMorgan and concerns over proposed caps on credit card interest rates. Energy stocks outperformed as oil prices jumped more than 2% on rising geopolitical tensions with Iran
In Asia, China’s December trade data beat expectations, with exports jumping 6.6% year-on-year and imports rising 5.7%, lifting the annual trade surplus to a record $1.19 trillion, up 20% from 2024.
Japanese stocks hit fresh record highs as speculation grew that Prime Minister Sanae Takaichi may call a snap election in February. The Nikkei 225 surged past 54,000 for the first time, extending gains after a strong rally Tuesday, while the Topix also reached new highs. USDJPY rose above 159.30, the lowest level since July 2024 for the Yen.
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