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Stocks rise as gold rally continues

US equities started the week higher on Monday as investors positioned for the Federal Reserve’s (Fed) midweek rate decision, a packed calendar of major technology earnings and mounting uncertainty over US government funding. Asian stock markets followed Wall Street higher on Tuesday, with South Korea’s Kospi leading gains despite fresh US tariff threats. At the same time, gold extended its blistering rally, trading well above USD 5000 per ounce alongside strong silver gains. US Treasuries rose slightly across the curve, while both the US dollar and bitcoin stabilised following recent losses.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Wall Street green light
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US stocks started the week higher on Monday, with the Dow Jones Industrial increasing 0.6% to 49,412.40 points, the Nasdaq 100 advancing 0.4% and the S&P 500 gaining 0.5%, as investors positioned for the Fed’s rate decision and a series of major technology earnings. Market participants expect the Fed to leave interest rates unchanged on Wednesday, while the search for a successor to Fed Chair Jerome Powell and upcoming results from Apple, Microsoft, Tesla and Facebook parent company Meta Platforms remained in focus. Investors are also keeping an eye on the risk of a partial US government shutdown that could begin this weekend. That risk increased on Monday as Senate Republicans rejected Democratic calls to separate funding for the Department of Homeland Security from a broader spending bill that must pass to keep key agencies open past 31 January.

Gold climbs further above USD 5000

Gold extended its rally, trading above USD 5000 per ounce for a second day on Tuesday. The yellow metal was trading about 1.5% higher around USD 5080 on Tuesday morning, supported by a weaker US dollar, geopolitical tensions and investor shifts away from sovereign bonds and major currencies. Silver also jumped about 6% to trade just under USD 110 per ounce.

South Korean autos steady after tariff threat

Asian stock markets advanced on Tuesday, with South Korea’s Kospi surging 2.7% even as South Korean carmakers initially dropped after US President Donald Trump said tariffs on the country would increase to 25% from 15% over delays in ratifying a bilateral trade deal. Other stock indices in the Asia-Pacific region were trading higher on Tuesday, taking their cue from Wall Street’s solid start to the week. Japan’s Nikkei 225 was up 0.8% and Australia’s S&P/ASX 200 was trading 0.9% higher. Hong Kong’s Hang Seng Index was gaining 1.3%, mainland China’s CSI 300 was little changed and India’s Nifty 50 was up 0.3%.

German ifo business climate stagnates

The ifo Business Climate Index for Germany was unchanged at 87.6 points in January, with companies reporting a slightly improved current situation but marginally weaker expectations on Monday. Manufacturing sentiment brightened significantly, as firms viewed current conditions more favourably and were less pessimistic about the outlook, even though capacity utilisation slipped to 77.5% from 78.1%, remaining below its long-term average of 83.2%. The business climate worsened in the service sector, particularly in logistics and tourism, while sentiment improved in trade and construction but stayed clearly below long-term norms. European stock indices were mixed on Monday. The Euro Stoxx 50 edged up 0.1%, while Germany’s DAX added 0.1% and France’s CAC 40 slipped 0.2%. The Swiss Market Index was essentially flat. Overall, trading activity suggested investors were cautious at the start of the week ahead of key central bank decisions and US data releases.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Boeing, LVMH, NextEra Energy, RTX, Texas Instruments, Union Pacific, UnitedHealth Group, and United Parcel Service.

Economic data in focus: US ADP National Employment Report (14:15) and Conference Board Consumer Confidence Index (16:00).

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Source: LGT Bank (Switzerland) Ltd.