May 27th, 2025

Quick analysis of global markets and cryptocurrency trends amid steady risk sentiment

I’ve been closely monitoring the latest developments shaping markets worldwide, offering my perspective on how these events intertwine and what they mean for investors, traders, and the broader economy. From the steadying of global risk sentiment thanks to promising EU-US trade talks, to the mixed reactions in equity markets, and the fascinating dynamics in the cryptocurrency space, there’s a lot to unpack.

Let’s explore this step by step, weaving together facts, data, and analysis into a comprehensive narrative.

Trade talks set the tone for global risk sentiment

The global financial markets are currently riding a wave of cautious optimism, largely driven by positive signals from EU-US trade negotiations. On Monday, May 26, 2025, EU Trade Commissioner Maros Sefcovic shared encouraging news after a productive call with US Commerce Secretary Howard Lutnick. Sefcovic emphasised that the European Commission is “fully committed to constructive and focused efforts at pace” toward securing a trade deal with the United States.

This commitment couldn’t come at a more critical time, as fears of a transatlantic trade war have loomed large, threatening to disrupt the US$1.7 trillion annual trade relationship between these two economic giants. The mere hint of progress has steadied global risk sentiment, providing a much-needed respite from the uncertainty that has plagued markets in recent months.

Why does this matter? According to economic think tanks like Bruegel and the Tax Foundation, a trade war could shave 0.3 per cent off EU GDP and 0.7 per cent off US GDP. Tariffs would hit industries hard—think European automakers like Volkswagen or American tech giants like Apple—and ripple through global supply chains. Brussels and Washington are signaling a desire to avoid this scenario by agreeing to accelerate negotiations, and markets are responding in kind.

European shares, from Germany’s DAX to the broader Euro Stoxx 600, have climbed, reflecting investor relief. Meanwhile, with US markets closed for Memorial Day on Monday, Wall Street futures are pointing to a higher open on Tuesday, May 27, 2025, tracking Europe’s upward trajectory. It’s a classic case of markets pricing in hope, though the deadline for a deal on July 9, 2025, keeps the pressure on.

Asian markets feel the heat of tariff threats

Not all regions are basking in this optimism, however. Asian equity markets took a hit on Monday after US President Donald Trump reignited tariff threats targeting the EU and imported mobile phones. The Hang Seng Index in Hong Kong bore the brunt, dropping 1.4 per cent, outpacing declines among its regional peers.

This reaction isn’t surprising—Asia’s economies, deeply embedded in global trade networks, are hypersensitive to US policy shifts. A 25 per cent tariff on imported iPhones, for instance, could hammer companies like Foxconn, a key supplier, and disrupt the tech supply chain that powers much of the region’s growth.

Trump’s rhetoric is a familiar playbook: bold threats followed by strategic retreats. His latest social media posts have rattled nerves, promising 50 per cent tariffs on EU goods and steep levies on foreign-made phones. Yet, his decision to push EU tariff deadlines to July suggests these are bargaining chips rather than immediate policy.

Still, the uncertainty weighs heavily, and while Asian indices showed mixed performance early Tuesday, the shadow of potential trade barriers lingers. For investors, this divergence—Europe and the US rising while Asia stumbles—highlights the uneven impact of geopolitics on global markets.

US markets and the data deluge ahead

With US markets shuttered for Memorial Day, all eyes are on Tuesday’s reopening. Wall Street futures are buoyant, mirroring Europe’s gains, but the real test comes tonight with a packed US economic data slate.

We’re talking April’s preliminary durable goods orders, the March FHFA house price index, the May Conference Board consumer confidence survey, and the Dallas Fed manufacturing activity index for May. These aren’t just numbers—they’re pulse checks on the world’s largest economy.

Durable goods orders, a proxy for manufacturing health, could signal whether businesses are investing in big-ticket items like machinery, a sign of economic confidence. The consumer confidence survey, meanwhile, reflects how households—whose spending drives 70 per cent of US GDP—view their financial future.

A dip here, especially amid trade noise and rising Treasury yields (more on that in a moment), could dampen the stock rally. The housing and manufacturing data will round out the picture, offering clues about inflation pressures and industrial output. My take? If these figures beat expectations, they’ll reinforce the bullish sentiment from trade talks. But any weakness could stoke fears of a slowdown, testing the market’s newfound optimism.

Bonds, dollars, and commodities: The supporting cast

The bond market, quiet on Monday due to the holiday, is another piece of this puzzle. The 10-year US Treasury yield stood at 4.51 per cent last Friday, a level that’s been climbing amid concerns over US debt and potential fiscal stimulus like tax cuts.

Higher yields make bonds more attractive than stocks, but they also raise borrowing costs, which could cool economic growth. When trading resumes, watch how yields react to the trade news and data releases—stability could bolster stocks, while a spike might trigger a sell-off.

Currency and commodity markets are also in flux. The US Dollar Index slipped 0.2 per cent to 98.93, a modest retreat that aligns with easing trade tensions reducing its safe-haven appeal. Gold followed suit, dipping 0.4 per cent to US$3,344 per ounce, as investors dialled back on defensive assets.

Brent crude oil edged down 0.1 per cent to US$65 per barrel, caught between optimism over trade (which could lift demand) and worries about rising OPEC+ supply. These moves suggest a market in transition, shedding some risk-off posture but not fully embracing a growth narrative yet.

The crypto corner: Bitcoin’s institutional boost

Now, let’s pivot to cryptocurrencies, where the action is equally compelling. Bitcoin is teasing a breakout, hovering above US$108,000 but struggling to crack the $110,000 resistance. What’s fuelling this? Institutional appetite is roaring—Bitcoin ETFs are seeing hefty inflows, and MicroStrategy just dropped US$427 million on more BTC. This isn’t a retail frenzy; it’s big money betting on digital gold.

Add in technological leaps in Bitcoin mining—think efficiency gains boosting the network’s role in decentralised finance (DeFi)—and you’ve got a recipe for cautious optimism. Analysts see US$114,000 as the next target if upcoming data or political events (like a trade deal) tilt positive.

MicroStrategy’s moves deserve a closer look. Between May 12 and May 18, 2025, the company raised US$765.4 million through share sales—1.71 million MSTR shares and 621,555 STRK preferred shares—then plowed US$764.9 million into 7,390 BTC at US$103,498 per coin.

Their stash now stands at 576,230 BTC, bought at an average of US$69,726, totalling US$40.18 billion. That’s a bold play, especially with a class action lawsuit challenging their crypto-heavy strategy. To me, it’s a high-stakes vote of confidence in Bitcoin’s future, though the legal risk adds a wildcard.

Ethereum’s bullish bounce

Ethereum’s story is just as intriguing. Trading near US$2,576, ETH is climbing within a bullish pennant on the 4-hour chart—a pattern hinting at an imminent surge.

It’s bounced convincingly from the US$2,470–US$2,495 demand zone, backed by strong technicals and growing interest in spot and derivatives markets. Why the uptick? Renewed investor faith after a breakout from $1,920 earlier this month, plus momentum pushing it toward a key descending trendline. If bulls break through, US$2,650 and US$2,713 are in sight.

On the daily chart, ETH’s holding above the US$2,550 pivot, consolidating below US$2,600–US$2,620 resistance—a zone tied to old supply levels from March. This setup screams potential, though it hinges on sustained buying pressure.

My take: A balancing act of hope and caution

So, where do I land on all this? Global risk sentiment is indeed steady, buoyed by EU-US trade progress, but it’s a fragile equilibrium.

Europe and the US are riding a wave of relief, while Asia’s jitters remind us that Trump’s tariff threats aren’t empty noise—they’re a real risk. Tonight’s US data could either cement this optimism or expose cracks in the recovery narrative. In crypto, Bitcoin and Ethereum are flexing muscle, powered by institutional bets and technical strength, yet they’re not immune to macro shocks.

For investors, it’s a time to stay nimble. The trade talks are a lifeline, but deadlines and politics could derail them. Stocks look poised for gains if the data cooperates, though bonds and commodities signal lingering doubts.

Crypto’s resilience impresses me—MicroStrategy’s all-in approach is gutsy, and Ethereum’s chart is a technician’s dream—but volatility lurks. My advice? Embrace the upside, but keep an eye on the exits. The world’s holding its breath, and so should your portfolio.

Source: https://e27.co/quick-analysis-of-global-markets-and-cryptocurrency-trends-amid-steady-risk-sentiment-20250527/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

March 3rd, 2025

Global markets steady as PCE data softens, Trump names Bitcoin in strategic reserve

The financial world is buzzing with activity, and the interplay between macroeconomic data, geopolitical tensions, and groundbreaking policy moves like Trump’s proposed Crypto Strategic Reserve offers a rich tapestry to explore.

Let’s unpack this step by step, weaving together the facts, the data, and my own perspective on what it all means for investors, policymakers, and the average person trying to make sense of these turbulent times.

The latest US PCE inflation data provides a starting point, and it’s a cautiously optimistic one. In January, both headline and core PCE price indices rose by 0.3 per cent month-over-month, aligning neatly with economists’ expectations. This moderation in price pressures suggests that the Federal Reserve’s tightrope walk of managing inflation without choking economic growth might be paying off.

For context, the PCE, or Personal Consumption Expenditures index, is the Fed’s preferred gauge of inflation, and a 0.3 per cent increase is a far cry from the scorching prints we saw in 2022. It’s not a victory lap yet—annualised figures still hover above the Fed’s 2 per cent target—but it’s enough to steady global risk sentiment. Markets crave predictability, and this benign inflation print delivered just that.

The US Treasury market certainly took notice, posting its biggest monthly gain since July. Short-term yields dipped below 4 per cent, and the 10-year yield slid 5 basis points to 4.2 per cent, the lowest since mid-December. This rally in bonds reflects a growing belief that the Fed might ease up on rate hikes, or even pivot to cuts later in 2025 if the data keeps cooperating.

But don’t pop the champagne just yet. The geopolitical landscape is throwing curveballs that could unravel this fragile calm. Last Friday’s Oval Office meeting between President Donald Trump and Ukrainian President Volodymyr Zelensky was a disaster by all accounts.

What was supposed to be a constructive dialogue on a critical minerals deal—think lithium, cobalt, and other resources vital for batteries and tech—blew up spectacularly. The fallout scrapped the deal and dashed hopes of ceasefire talks in the ongoing Russia-Ukraine conflict. This isn’t just diplomatic theater; it’s a blow to supply chains and energy transition plans. Ukraine’s mineral wealth could have bolstered US efforts to reduce reliance on China, but now that door’s slammed shut.

The implications ripple outward: heightened uncertainty, potential supply shortages, and a reminder that geopolitics can trump economic fundamentals in a heartbeat. Markets shrugged it off for now—MSCI US climbed 1.6 per cent, with Financials up 2.1 per cent and Consumer Discretionary gaining 1.8 per cent—but I’m not convinced this resilience will hold if tensions escalate further.

Switching gears to Trump’s bombshell announcement, the Crypto Strategic Reserve is the wildcard everyone’s talking about. On Sunday, Trump took to Truth Social to declare that Bitcoin, Ethereum, XRP, Solana, and Cardano would form the backbone of a “strategic national digital assets stockpile.”

Prices of these tokens soared—some reports suggest double-digit gains within hours—and the crypto community is ablaze with speculation. This isn’t a spur-of-the-moment tweet; it builds on an executive order Trump signed in January to explore such a reserve. His framing is classic Trump: a middle finger to the Biden administration’s “corrupt attacks” on crypto, paired with a promise to “elevate” the industry.

It’s a bold move, and I’ll admit, it’s got my journalist senses tingling. On one hand, legitimising crypto at this level could turbocharge adoption. Analysts at State Street are already predicting that crypto ETFs will surpass precious metals in North America by year-end, becoming the third-largest ETF asset class. That’s a seismic shift, and a government-backed reserve could accelerate it.

But let’s pump the brakes and dig deeper. What does a “Crypto Strategic Reserve” even mean in practice? Is the US government buying up billions in Bitcoin and altcoins to sit on them like a digital Fort Knox? Trump’s post didn’t specify quantities or timelines, which leaves room for skepticism.

The logistics are daunting—securing wallets, managing volatility, and navigating regulatory minefields. And why these five coins? Bitcoin and Ethereum are no-brainers; they’re the blue-chip cryptos with the deepest liquidity. XRP, Solana, and Cardano, though, raise eyebrows. XRP’s tangled legal history with the SEC, Solana’s past network outages, and Cardano’s slower development pace don’t scream “strategic” to me.

Posts on X suggest a market frenzy—Cardano reportedly jumped 60 per cent, XRP 25per cent, Solana 20 per cent—but I wonder if this is more hype than substance. Trump’s a showman, and this could be a populist play to win over the crypto crowd without a clear endgame. Still, the signal is powerful: the US might be positioning itself as a crypto superpower, daring others to follow suit.

Across the Pacific, China’s stirring the pot too. The official manufacturing and non-manufacturing PMIs for February ticked up, a relief after the Lunar New Year slowdown from January 28 to February 4. Factories are humming again, and services are rebounding. But peek under the hood, and the picture’s murkier—sub-indices like new orders and employment hint at fragility.

All eyes are on the “Two Sessions” kicking off March 4, where Beijing’s expected to unveil fiscal stimulus. Investors are salivating for measures to juice domestic demand and supercharge AI, especially after Xi’s symposium with business leaders two weeks ago. I’m cautiously optimistic here; China’s got the firepower to move markets, but execution’s the rub. Past promises have sometimes fizzled, and with Trump’s tariffs looming—10 per cent on Chinese goods starting March 4, alongside hikes on Mexico and Canada—Beijing’s got a tightrope of its own to walk.

Speaking of tariffs, they’re casting a shadow over energy markets. Brent crude slipped 1.2 per cent, reflecting fears that trade barriers will dampen global demand. It’s a logical worry: higher costs on imports could slow manufacturing and consumer spending, hitting oil consumption.

The US Dollar Index, meanwhile, edged up 0.4 per cent, flexing its safe-haven muscle, while gold dipped 0.7 per cent. That’s a classic risk-off tilt, even as equities hold firm. Asian equity indices opened mostly higher today, but US futures suggest a mixed start. It’s a market caught between hope (inflation cooling, stimulus hopes) and dread (geopolitics, trade wars).

The week ahead is a gauntlet. US payrolls and ISM data will test the economy’s pulse, while Fed Chair Jerome Powell’s keynote could drop hints on rate cuts. A barrage of Fedspeak will keep traders on edge, and the ECB’s policy rate decision across the pond adds another layer. Trump’s State of the Union on March 4—coinciding with the tariff rollout—will be must-watch TV. Will he double down on the crypto reserve or pivot to red-meat nationalism? My gut says he’ll lean into both, keeping markets guessing.

This is a pivotal moment, but it’s laced with uncertainty. The PCE data and Treasury rally signal a soft landing might be in reach, yet geopolitics and tariffs could derail it. Trump’s crypto gambit is audacious—potentially transformative if it’s more than bluster—but I’d wager it’s half-baked until we see details.

China’s stimulus could be a game-changer, but only if it delivers. For investors, it’s a time to stay nimble: ride the crypto wave, hedge against trade shocks, and watch the Fed like hawks. As an observer, I’m thrilled to chronicle this chaos—it’s where the real stories live. But as a global citizen, I can’t shake the feeling we’re one tweet or tantrum away from a very different market wrap.

Source: https://e27.co/global-markets-steady-as-pce-data-softens-trump-names-bitcoin-in-strategic-reserve-20250303/

Anndy Lian

www.anndy.com

j j j

February 11th, 2025

Global risk sentiment holds steady amid tariffs, AI optimism, and crypto shifts

The financial landscape is navigating an ever-shifting environment, with risk sentiment holding steady despite significant macroeconomic developments on 11 February 2025.

One of the most notable events in recent days has been President Donald Trump’s decision to impose a 25 per cent tariff on all steel and aluminium imports, a move that includes key trading partners like Mexico and Canada without any exemptions. This policy, enacted under Section 232 of the Trade Expansion Act, has sent shockwaves through global markets, raising fears of potential trade conflicts and their broader economic fallout.

Trump has also hinted at the possibility of further increasing these tariffs and suggested the introduction of reciprocal tariffs, which could be announced as early as today or Wednesday. These developments have heightened market uncertainty as investors and analysts closely monitor whether these threats will materialise and how they might reshape global trade dynamics.

At the same time, the US corporate earnings season has provided a stabilising force, with strong performances from American companies reinforcing confidence in the economy’s underlying health.

However, the interplay between these macroeconomic and microeconomic factors, alongside other global trends such as Japan’s potential reclassification of cryptocurrencies and significant Bitcoin acquisitions by firms like Strategy (formerly MicroStrategy), paints a multifaceted picture of the current financial environment.

In this article, I will explore these developments in detail, analyse their potential impacts, and offer my perspective on how they shape the global risk sentiment.

Tariffs and market reactions

Let’s start with the tariff announcement, which has dominated financial news and market discussions in recent days. President Trump’s decision to impose a 25 per cent tariff on steel and aluminium imports under Section 232—a provision that allows the president to restrict imports deemed a threat to national security—marks a significant escalation in US trade policy.

Unlike previous tariff actions, which often included exemptions for key allies, this move explicitly excludes Mexico and Canada, two of the United States’ largest trading partners. This lack of exemptions has raised concerns, as it signals a more aggressive and unilateral approach to trade policy. Trump’s comments over the weekend and his warning that tariffs could “go higher” have added to the uncertainty, with market participants now bracing for the possibility of reciprocal tariffs.

Reciprocal tariffs, if implemented, would involve matching the tariff rates of other countries on US exports, potentially triggering retaliatory measures from affected nations. The timing of these potential announcements—possibly today or Wednesday—has kept markets on edge, as investors weigh the risks of a broader trade conflict.

From a market perspective, the immediate reaction to the tariff news has been varied. US equity indices, as measured by the MSCI US Index, rose by 0.7 per cent on Monday, with strong performances in the energy sector (+2.2 per cent) and information technology (+1.5 per cent). This resilience suggests that, for now, investors are focusing on the positive fundamentals of American companies rather than the potential negative impacts of tariffs.

The US earnings season has been particularly strong, with many companies surpassing expectations despite what analysts had considered a high bar. This strength in corporate fundamentals has provided a buffer against the macro uncertainties, supporting risk sentiment in the short term.

However, the longer-term implications of tariffs cannot be ignored. Tariffs on steel and aluminium could increase input costs for industries such as manufacturing, construction, and automotive, potentially squeezing profit margins and stoking inflation. If reciprocal tariffs are introduced, US exporters could face higher costs in foreign markets, further complicating the economic outlook.

Turning to the bond market, US Treasury yields ended Monday’s session with mixed results. Shorter-term yields, such as the two year and seven year, edged lower, reflecting some caution among investors about the near-term economic impact of tariffs.

Conversely, longer-term yields, including the 10-year (+0.2 basis points to 4.497 per cent) and 30-year (+1.4 basis points to 4.707 per cent), inched higher, suggesting that investors expect inflationary pressures from tariffs to persist over the longer term. This divergence in yield movements highlights the uncertainty surrounding the Federal Reserve’s next moves. Tariffs, by increasing costs and potentially delaying rate cuts, could complicate the Fed’s efforts to balance inflation and growth.

The US Dollar Index, meanwhile, rose by 0.3 per cent, reflecting safe-haven demand amid the tariff-related uncertainty. Gold, a traditional safe-haven asset, surged by 1.7 per cent to a fresh record high, underscoring investor concerns about geopolitical and economic risks. In the energy market, Brent crude oil prices rose by 1.6 per cent, supported by signs of a tighter market and geopolitical tensions, including Russia’s failure to meet its OPEC+ quota and rising natural gas prices in Europe.

Asian markets and crypto regulations

In Asia, the HSCEI index rose by 2.1 per cent for the third consecutive day, driven by optimism surrounding DeepSeek’s AI model and a perception that tariff tensions might be less severe than feared. However, early trading sessions on Tuesday showed mixed results for Asian equity indices, with US equity futures pointing to a lower open. This divergence highlights the uneven impact of tariff-related developments across regions.

While US markets have been buoyed by strong earnings, Asian markets remain more exposed to trade risks, given their reliance on exports. The resilience of risk sentiment in Asia, particularly in China, can also be attributed to positive developments in the AI sector, with companies like DeepSeek demonstrating resilience despite trade tensions. However, the broader implications of tariffs on global supply chains and economic growth remain a concern, particularly for export-dependent economies.

Shifting focus to other global developments, Japan’s Financial Services Agency (FSA) is considering a significant regulatory change that could reclassify cryptocurrencies as securities. This potential shift, which could take effect by 2026, would have far-reaching implications for retail investors and the broader financial ecosystem. By classifying crypto as securities, Japan aims to strengthen investor protections, lower taxes on crypto investments, and enable domestic funds to invest in tokens.

This move could also pave the way for the approval of crypto exchange-traded funds (ETFs), including spot Bitcoin ETFs, which would attract institutional capital and boost market liquidity. Posts on X have highlighted the FSA’s plans, with some users speculating on the potential for tax cuts and ETF approvals.

However, these reports remain inconclusive, and the FSA’s final decision will depend on a comprehensive review of existing regulations. If implemented, this reclassification could position Japan as a leader in the global crypto market, potentially offsetting some of the negative sentiment surrounding tariffs.

Another notable development in the crypto space is the recent acquisition by Strategy (formerly MicroStrategy) of 7,633 Bitcoin for US$742 million between February 3 and February 9, at an average price of US$97,255 per Bitcoin. The firm now holds 478,740 Bitcoin, worth over US$46 billion, with an average purchase price of US$65,033 per Bitcoin.

This acquisition, representing 2.2 per cent of Bitcoin’s total supply, underscores the growing institutional interest in cryptocurrencies as a store of value and hedge against inflation. Strategy’s aggressive Bitcoin strategy has been closely watched by investors, with some viewing it as a bullish signal for the crypto market.

However, the timing of this acquisition, amid tariff-related uncertainty and rising gold prices, raises questions about the firm’s risk management approach. While Bitcoin has historically been seen as a safe-haven asset, its volatility and correlation with risk assets like equities could complicate its role in a tariff-driven market environment.

Balancing risk and optimism

From my perspective, the current global risk sentiment is a delicate balance between optimism and caution. On one hand, the strength of US corporate earnings and positive developments in sectors like AI and crypto provide a foundation for resilience. The MSCI US Index’s gains, driven by energy and tech, reflect confidence in the underlying fundamentals of the economy.

Similarly, Japan’s potential reclassification of crypto and Strategy’s Bitcoin acquisition signal growing institutional acceptance of digital assets, which could support risk sentiment in the longer term. On the other hand, the tariff announcement and the threat of reciprocal tariffs introduce significant uncertainty.

Tariffs, by increasing costs and disrupting supply chains, could stoke inflation and weigh on economic growth. The mixed performance of US Treasury yields, the surge in gold prices, and the rise in Brent crude oil all point to heightened concerns about the macroeconomic outlook.

In my view, the key question for markets is whether the positive microeconomic factors—such as strong earnings and innovation in AI and crypto—can continue to offset the negative macroeconomic risks posed by tariffs. While US markets have shown resilience so far, the potential for retaliatory measures from trading partners like China, Mexico, and Canada could escalate tensions and disrupt global trade.

For Asia, the optimism surrounding DeepSeek’s AI model and less severe tariff fears may provide temporary relief, but the region’s exposure to trade risks remains a concern. Japan’s potential crypto reclassification, if implemented, could be a game-changer, attracting capital and boosting sentiment. However, the success of this move will depend on the FSA’s ability to balance investor protections with market growth. Strategy’s Bitcoin acquisition, while bullish for crypto, also highlights the challenges of navigating a volatile market environment.

In conclusion, the global risk sentiment is supported by a combination of strong corporate fundamentals and positive developments in AI and crypto, but it remains vulnerable to tariff-related uncertainties. President Trump’s tariff announcement, under Section 232, has introduced significant risks, with the potential for reciprocal tariffs adding to the complexity. While US markets have been buoyed by earnings, the longer-term implications of tariffs on inflation, growth, and trade dynamics cannot be ignored.

In Asia, optimism surrounding AI and crypto provides a counterbalance, but the region’s exposure to trade risks remains a concern. Japan’s potential crypto reclassification and Strategy’s Bitcoin acquisition are positive signals, but their impact will depend on broader market conditions. As markets navigate this busy macro news backdrop, the interplay between microeconomic resilience and macroeconomic risks will shape the trajectory of global risk sentiment in the coming weeks and months.

Source: https://e27.co/global-risk-sentiment-holds-steady-amid-tariffs-ai-optimism-and-crypto-shifts-20250211/