At the end of Monday, the Dow Jones Index (US30) added 0.08%. The S&P 500 Index (US500) was down 0.50%. The Nasdaq Technology Index (US100) decreased 1.21%. Among individual stocks, Palantir, a key player in defense AI, fell sharply by 10.5% and is now down nearly 30% from its peak. Nvidia also fell by 3.1% as it prepares to release its earnings report on Wednesday, while Microsoft lost 1% amid concerns about slowing data center spending growth. On the other hand, Apple rose by 0.6% as it announced plans to invest $500 billion in the US over the next four years and plans to hire 20,000 new employees.

Bitcoin prices fell below $92,000, hitting their lowest level since last November. The collapse in risk assets began last week amid growing concerns about the outlook for the US economy, amplified by President Donald Trump’s escalating tariff threats and the Federal Reserve’s hawkish stance on interest rates. Meanwhile, MicroStrategy bought another 20,365 bitcoins worth nearly $2 billion, bringing the total number of bitcoins to 499,096 or roughly $33.1 billion.

Equity markets in Europe traded flat on Monday. Germany’s DAX (DE40) rose by 0.62%, France’s CAC 40 (FR40) closed down 0.78%, Spain’s IBEX 35 (ES35) added 0.47%, and the UK’s FTSE 100 (UK100) closed negative 0.01%. In Germany, Friedrich Merz’s conservatives won the election. Investors are closely watching for signs of Germany’s fiscal strategy, while economists remain divided on the government’s ability to enact significant economic reforms.

Ukraine and the United States are in the final stages of negotiating a mineral deal considered key to ending Russia’s three-year war in Ukraine. Kyiv and Washington are interested in US access to Ukraine’s underground wealth, but President Volodymyr Zelenskyy said any deal must include specific security guarantees. Zelenskyy refused to sign an initial draft of the agreement earlier this month, sparking displeasure at the White House.

WTI crude prices climbed above $71 a barrel on Tuesday, posting a second straight day of gains after the US imposed additional sanctions on oil trade from Iran, adding to fears of dwindling global supplies. On Monday, the US imposed sanctions on brokers, tanker operators, and shipping companies involved in the sale and transportation of Iranian oil, affecting 22 individuals and 13 vessels based in China, the UAE, India, and Hong Kong. This is the second round of sanctions as President Donald Trump seeks to zero out Iran’s crude oil exports to prevent the country from obtaining nuclear weapons.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) rose by 0.26%, China’s FTSE China A50 (CHA50) fell by 0.37%, Hong Kong’s Hang Seng (HK50) lost 0.58% and Australia’s ASX 200 (AU200) was up 0.14%. Hong Kong stocks fell 1.4% in Tuesday morning trading, marking a second session of sharp declines amid losses in the broad sector, especially consumer discretionary and technology. Traders retreated from risky assets after the US stepped up restrictions on Chinese investment and continued to impose tariffs on Canada and Mexico. Caution also intensified ahead of China’s official PMI data for February to be released over the weekend, with the reading expected to be lower due to the impact of the New Year’s Eve holiday break.

The offshore yuan remained weak around 7.26 per dollar as investors remained cautious amid escalating trade tensions between the US and China. President Donald Trump is reportedly planning to tighten controls on chip exports to China following a recent executive order to restrict Chinese investment in technology and other strategic US industries.

The Australian dollar traded near US$0.635 on Tuesday, remaining under pressure after falling for two consecutive sessions, driven by US President Donald Trump’s recent comments on tariffs that raised fears of a possible global trade war. On Monday, Trump said tariffs on Canada and Mexico “will be imposed” as soon as the one-month delay period ends next week. Domestically, investors are also awaiting Australia’s monthly inflation report on Wednesday, which is expected to provide crucial insight into the future direction of monetary policy.