"Global equities ended the week down a modest 0.4% in local currency terms. But they fell a somewhat larger 1.4% in sterling terms due to a rise in the pound against a weaker dollar to $1.36. Losses of around 2% early in the week caused by the consternation surrounding Trump's threats over Greenland were largely recovered when he backed down."
"While equities were soothed by the de-escalation of tensions, gold was much more focused on the fact that there has been a further fracturing of the NATO alliance and the damage done cannot easily be undone. It surged as much as 8.2% and has broken through $5000/oz this morning. The latest geopolitical ructions have once again focused investor minds on the desirability of limiting exposure to the vagaries of US policy. Gold was the prime beneficiary while the dollar was a casualty."
Global equities fell 0.4% in local currency terms and 1.4% in sterling terms as the pound rose to $1.36 against a weaker dollar. Early-week losses around 2% from concerns about Trump's Greenland threats were largely recovered after he backed down. After diplomatic pressure and signs of potential EU retaliation, Trump said he would not take Greenland by force or impose tariffs on the UK and some EU countries from 1 February. US and Japanese equities lost 1.7% and 2.1% in sterling terms, dragged down by currency falls. UK equities fell 0.8% overall while small and mid-caps gained. Gold surged 8.2% and broke $5000/oz, benefiting from investor flight from US policy risk. Bitcoin fell 6.3%. US Treasuries returned 0.1%; UK gilts lost 0.6%. US November headline and core inflation each ran at 2.8%, leaving the Fed likely to keep rates unchanged with cuts not expected until April.
Read at London Business News | Londonlovesbusiness.com
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