🗓 Tuesday, October 14, 2025
► Europe lower – trade tensions weigh on sentiment
European equities declined as renewed US-China trade tensions triggered risk aversion across global markets. China imposed sanctions on five US subsidiaries of South Korea’s Hanwha Ocean and hinted at further retaliatory steps. Stoxx 600 -0.7%, DAX -1.1%, CAC 40 -0.7%, FTSE 100 -0.3%, FTSE MIB -0.9%, IBEX -0.2%. Bund 10Y 2.60% (-3bps), UK 10Y 4.59% (-7bps). EUR/USD 1.155 (-0.2%), GBP/USD 1.326 (-0.5%), USD/JPY 152.0 (-0.2%). Technology and cyclical sectors led the declines, while defensives outperformed slightly. Investors moved into bonds as risk sentiment deteriorated, pushing yields lower. Markets remain cautious ahead of US bank earnings, with valuations seen as stretched following the year’s rally.
► Wall Street futures fall – trade flare-up and AI selloff hit sentiment
US equity futures dropped after Monday’s rebound, as risk appetite weakened on fresh signs of trade retaliation from China. Nasdaq 100 -1.1%, S&P 500 -0.8%, Dow -0.5%. The pullback is led by AI and chip stocks, including Nvidia -1.6%, Broadcom -2.3%, Tesla -2.2%. China’s sanctions reignited concerns about global supply chains and the AI sector’s dependency on rare earth materials. The 10-year Treasury yield fell to 4.02% (-3bps) as investors sought safety, while the DXY +0.3% strengthened for a second session. Despite the cautious mood, early earnings from JPMorgan, Wells Fargo, and J&J beat expectations, while Goldman Sachs also topped estimates. Analysts expect volatility to stay elevated but see limited fundamental damage as both sides avoid deeper escalation.
► Asia sharply lower – Japan leads losses amid trade tensions
Asian equities fell across the board following renewed trade tensions between the US and China. Nikkei -2.6%, Hang Seng -1.7%, Shanghai -0.6%, Shenzhen -2.5%, Kospi -0.6%, Taiwan -0.5%, Nifty -0.3%, ASX +0.2%. USD/JPY 152.1 (-0.2%). Japan’s markets were hit hardest as tech exporters tumbled on fears of supply-chain disruption. Chinese equities also weakened after Beijing sanctioned five US-linked firms, signaling potential escalation. Traders expect Beijing and Washington to maintain tough rhetoric but avoid measures that would significantly harm trade.
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