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Germany’s economy eked out meagre growth in 2025 and dodged a third straight year of recession, data showed Thursday, but Europe’s languishing industrial powerhouse still faces huge challenges to return to long-term health.Battered by an energy shock triggered by the Ukraine war, a manufacturing slump and weakening demand in the key Chinese market, the world’s third-biggest economy shrank in both 2023 and 2024.Despite the shock of last year’s US tariffs blitz, the German economy returned to growth with a modest expansion of 0.2 percent, helped by higher government and household spending, according to statistics agency Destastis. But another year of falling exports weighed on Europe’s top economy, the agency’s chief Ruth Brand said. “Germany’s export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from China,” she said.The preliminary GDP reading was in line with a government forecast. For the final quarter of 2025, the agency estimated that the economy grew 0.2 percent from the third quarter. – Merz under pressure -A return to growth could offer some relief to Chancellor Friedrich Merz, who took power last May vowing to revive the economy but has faced mounting criticism that efforts are moving too slowly.In a speech Wednesday, Merz conceded that “the situation of the German economy at the beginning of 2026 is very critical in many areas”.”Our economy is not competitive enough… Productivity in Germany has been at a consistently low level for ten years. We need to change that,” he said.Merz is betting on a public spending spree on defence and infrastructure to get the economy moving again, with the government’s latest projection in October forecasting growth this year will reach 1.3 percent. But after an initial burst of optimism last year, doubts have set in about whether his governing coalition can get to grips with the problems.The German central bank and several institutes have recently lowered growth forecasts and cautioned the government risks wasting much of the extra money that it borrows and is neglecting much-needed reforms.”A number of measures are still needed to help the economy out of its structural crisis in the long term and make Germany an attractive business location again,” Timo Wollmershaeuser, the Ifo institute’s head of forecasts, told AFP.- ‘Deepest crisis’ since WWII -Last month the Federation of German Industries issued a stark warning that the export-driven economy was suffering its “deepest crisis” since the aftermath of World War II, and that the government was failing to respond “decisively”.Appeals for help have increasingly come from the country’s traditional big industries, from automakers to factory equipment manufacturers and chemical giants, and 2025 was marked by a steady drumbeat of industrial job losses.Output in the manufacturing sector declined for the third straight year in 2025, dropping 1.3 percent from 2024, though the fall was less pronounced than in the previous two years, Destatis said.The key auto and mechanical engineering industries were hit especially hard as they “faced stronger competition on global sales markets”, it said.Adding to the headwinds were US President Donald Trump’s tariffs, an especially heavy blow for Germany as the United States is the country’s top export market.China, long a major market for German exporters, also proved a challenging environment as demand has been weakening due to a prolonged slowdown, while many Chinese firms have emerged as rivals to German heavyweights.Destastis noted it was a “turbulent year” for Germany’s foreign trade, with exports falling 0.3 percent, the third straight year of contraction.Merz has sought to defend his government’s record, pointing to relief measures such as a reduction in industrial energy costs, and said Wednesday that new firms were creating jobs lost in traditional industries.”We are seeing a large number of young companies being founded,” he said.

Oil slid Thursday after US President Donald Trump appeared to dial down threats of imminent military action on Iran, while Asian markets were mixed after Wall Street edged lower the previous day.Oil prices dropped three percent after Trump said Wednesday he would “watch it and see” on possible intervention in the Islamic republic, after he said he was told the killings of protesters there had stopped.Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.Silver plunged as much as seven percent after hitting a record high above $93.75 an ounce, after Trump held off slapping tariffs on critical minerals. Gold also dipped.”The swings in commodities highlight the extreme volatility being fed by President Trump’s mercurial policy style,” said Garfield Reynolds, Markets Live Asia Team Leader at Bloomberg.But “so far the declines for raw materials are still too small to seriously dent this year’s substantial rallies”, he said.”There’s plenty of potential that investors will be itching to pile back into commodities assets given how often they’ve bounced back to fresh highs following occasional corrections in recent weeks,” Reynolds added.Tokyo was down 0.4 percent at the close, cooling off after gains fuelled by speculation that Prime Minister Sanae Takaichi would call an election to capitalise on strong public approval ratings.Takaichi’s ruling party and a coalition partner said Wednesday she intends to dissolve parliament next week for a snap election, seen as a chance to push through her ambitious policy agenda.Sydney, Jakarta, Bangkok, Manila and Singapore posted gains, while Wellington, Mumbai and Kuala Lumpur were down.Shanghai and Hong Kong closed 0.3 percent down and Taipei ended 0.4 percent lower.After the closing bell, Taiwanese chipmaking titan TSMC said net profit for the fourth quarter jumped 35 percent year-on-year, beating forecasts as demand for artificial intelligence skyrockets.London opened on a 0.1 percent high as official data showed Britain’s economy grew more than expected in November.- South Korean won slides -Traders were also watching South Korea — with Seoul up 1.5 percent — as the won’s exchange rate slid towards its weakest level in 16 years.In a rare mention, US Treasury Secretary Scott Bessent said Wednesday that the won’s depreciation was “not in line with Korea’s strong economic fundamentals” and that volatility in the foreign exchange market is “undesirable”.The won gained as much as one percent after Bessent’s comments, which he posted on social media after meeting Seoul’s finance minister Koo Yun-cheol in Washington.”Bessent’s comments can support the won in the near term, but markets may have more influence if they feel the fundamentals and politics are still in a worsening trajectory,” said Brendan McKenna, a strategist at Wells Fargo in New York.The mixed picture in Asia came after Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and an increase in retail sales in November.Analysts noted investor unease about possible US interventions in Iran and Greenland, and Trump’s threats to Federal Reserve autonomy, most recently in the Department of Justice’s criminal probe of the central bank.- Key figures at around 0800 GMT -Tokyo – Nikkei 225: DOWN 0.4 percent at 54,110.50 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 26,924.24 (close)Shanghai – Composite: DOWN 0.3 percent at 4,112.60 (close)West Texas Intermediate: DOWN 3.4 percent at $59.94 per barrelBrent North Sea Crude: DOWN 3.4 percent at $64.23 per barrelEuro/dollar: DOWN at $1.1630 from $1.1647 on WednesdayPound/dollar: FLAT at $1.3433Dollar/yen: FLAT at 158.56 yenEuro/pound: DOWN at 86.58 pence from 86.68 penceNew York – Dow: DOWN 0.1 percent at 49,149.63 points (close)London – UP 0.1 percent at 10,197.73

Taiwanese chipmaking titan TSMC announced Thursday a forecast-busting net profit for the fourth quarter in a sign of sustained global demand for artificial intelligence technology.TSMC is the world’s biggest contract maker of microchips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware.The company has been a massive beneficiary of the AI revolution that has seen tech giants pour many billions of dollars into chips, servers and data centres.Some market-watchers fear the bubble of excitement around AI could burst and cause a stock rout, but TSMC’s results marked the latest high point for the firm.”Our conviction in the multi-year AI mega trend remains strong, and we believe the demand for semiconductors will continue to be very fundamental,” TSMC chairman CC Wei said.”By expanding our global footprint while continuing to invest in Taiwan, TSMC can continue to be the trusted technology and capacity provider of the global logic industry for years to come.”TSMC said net profit for the three months to December increased 35 percent year-on-year to NT$505.7 billion ($16 billion), beating the NT$466.69 billion forecast by analysts surveyed by Bloomberg News.Net revenue for the fourth quarter rose 20.5 percent from a year ago to NT$1.05 trillion, TSMC said, also beating expectations.TSMC — a bellwether for AI investment — expects capital spending to reach as high as $56 billion in 2026. – US pressure -Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.The strong results came after Taipei said it had reached a “general consensus” with the United States on a trade deal that the island hopes will reduce its current 20 percent tariff and shield its semiconductor industry from levies.Taiwan has previously vowed to increase investment in the United States, purchase more US energy and boost defence spending in a bid to head off US President Donald Trump’s sweeping tariffs.The US government launched investigations under Section 232 into semiconductors and chipmaking equipment last year. Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.Trump signed an order Wednesday imposing a 25 percent tariff on semiconductors that are “transshipped through the United States to other foreign countries” — enabling the government to take a cut from chips sold to China.Taiwan has been under pressure to move more chip production to US soil. TSMC pledged last year to invest an additional US$100 billion in the United States.But Trump’s administration has made clear it wants more of the critical technology made in the United States.TSMC’s global expansion along with “new investments, specialty technologies and inflationary costs” were contributing to “cost challenges”, chief financial officer Wendell Huang warned.Despite US pressure and the constant threat of invasion from China, which claims Taiwan is part of its territory, the island plans to keep making the “most advanced” chips on home ground, Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently.

China’s top diplomat said Thursday that a visit by Canadian Prime Minister Mark Carney to Beijing marked a “turning point” in the two countries’ long acrimonious relationship.The first visit by a Canadian leader to Beijing in eight years was a “turning point and symbol for the relationship between two countries”, Chinese Foreign Minister Wang Yi said in a statement, according to a readout.”The leaders of the two countries will hold meetings and talks, which I believe will open up new prospects for bilateral relations,” he added.Carney, who has also said ties between the two sides are shifting, is meeting with top Chinese leaders in Beijing on Thursday, as he pulls away from traditional ally the United States.Following President Donald Trump’s aggressive tariffs on Canadian products, Carney has sought to reduce his country’s economic reliance on its main market, the United States.Video from Chinese state media showed Carney arriving in Beijing for his four-day state visit late Wednesday evening to a red carpet welcome.He is scheduled to meet with Chinese President Xi Jinping and Premier Li Qiang, among other government and business leaders for trade talks.Ties between the two nations withered in 2018, when Canada arrested the daughter of Huawei’s founder on a US warrant, and China’s retaliatory detention of two Canadians on espionage charges.- ‘Right track’ -The two countries imposed tit-for-tat tariffs on each other’s exports in the years that ensued, with China also being accused of interfering in Canada’s elections.Caught in the tariffs crossfire were Chinese electric vehicles along with Canadian canola oil and other agricultural goods.The last time Chinese and Canadian leaders formally met was when then prime minister Justin Trudeau visited Beijing in 2017.But there have been signs of warming ties under Carney, who met Xi on the sidelines of an APEC summit in October.China has shown a willingness to rekindle the relationship, with Xi telling Carney after their meeting that it has “shown a recovery” towards “the right track”.Officials from the two countries have been in talks to lower tariffs, but an agreement has yet to be reached.Beijing, meanwhile, said this week it “attaches high importance” to Carney’s visit.- Pivot from US -Ottawa has traditionally been hawkish towards Beijing, positioning itself in alliance with the United States.But Canada has been hit especially hard by Trump’s steep tariffs on steel, aluminium, vehicles and lumber, prompting a change of heart.In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.But the United States remains far and away its largest market, buying around 75 percent of Canadian exports in 2024, according to Canadian government statistics.While Ottawa has stressed that China is Canada’s second-largest market, it lags far behind, buying less than four percent of Canadian exports in 2024.Carney will be looking to raise that figure, with his office saying the visit aims to “elevate engagement on trade, energy, agriculture, and international security”.

A “shadow fleet” of 19 tankers suspected of smuggling oil for Russia and Iran was flagged by New Zealand with Cook Islands authorities in 2024, according to a confidential list obtained by AFP.The small Pacific island is home to a flourishing international shipping registry, allowing foreign vessels to sail under its flag for a modest fee of a few thousand dollars.There is mounting evidence the archipelago has become a haven for foreign smugglers, who sail under the Cook Islands flag to escape scrutiny as they flout Western sanctions.New Zealand officials in 2024 compiled a list of 19 tankers — or “vessels of concern” — that had been registered to the Cook Islands in recent years.The list included the Arabesca, a crude oil tanker that frequently calls at Russian ports in the Baltic Sea.The Arabesca was in 2025 blacklisted by the UK, Canada, Switzerland and the European Union for smuggling Russian oil.Also named in New Zealand’s list was a ship called the Maruti, a chemical tanker often seen sailing through the Persian Gulf.The Maruti transported “hundreds of thousands of barrels” of Iranian naptha fuel while sailing under the Cook Islands’ flag in 2025, according to a US sanctions notice published in December.Both the Arabesca and the Maruti have since been deleted from the Cook Islands’ shipping registry.The Cook Islands has apparently brushed off New Zealand’s concerns about some other vessels.Of the 19 ships singled out by New Zealand in 2024, seven remained registered to the Cook Islands as of mid-January this year.This included tankers the Bonetta and the Ocean Wave, which are suspected by the United States of hauling crude oil from Iran.AFP could not reach the owners of the Arabesca, Maruti, Bonetta and Ocean Wave for comment.New Zealand’s list, released to AFP under freedom of information laws, was raised with Cook Islands through diplomatic channels in 2024. – Shadow fleet -Western sanctions aim to curb Iran and Russia cashing in on oil sales, limiting funding for Tehran’s nuclear programme or Moscow’s war machine.New Zealand alleges the Cook Islands has been exploited by transnational maritime smuggling networks known as the “shadow fleet”.By registering in places such as the Cook Islands — where they are subject to less stringent checks — shadow fleet ships can disguise themselves as legitimate vessels.Often the shipping registries are unaware of the ship’s true purpose.Cook Islands’ links to sanctions evasion are a source of potential embarrasment to New Zealand, which once governed the Pacific nation of some 15,000 people.New Zealand remains the Cook Islands’ closest diplomatic partner and still has a constitutional responsibility to help with foreign affairs and defence.”New Zealand has raised serious concerns directly with the Cook Islands government about the management of its shipping registry, including the flagging of shadow fleet vessels,” New Zealand’s foreign affairs department said.Former Royal New Zealand Navy officer Mark Douglas said some 150 foreign tankers were registered in the Cook Islands at its busiest point in 2024.”It certainly seemed at its peak that it was ‘pay to play’,” said Douglas, now an analyst for Starboard Maritime Intelligence.”If you turned up with some good paperwork and the cheque cleared, you were able to get the Cook Islands’ flag.”Cook Islands had since de-registered many of the most dubious vessels, Douglas said, but there were “some left that have question marks over them”.The UN-backed International Maritime Organisation currently lists 40 tankers registered to the Cook Islands.The Cook Islands offers what is known as a “flag of convenience”.This means foreign ship owners can pay to sail under the flag without ever setting foot on the archipelago, halfway between New Zealand and Hawaii.”Many shadow fleet vessels use flags of convenience from countries that are either less inclined or unable to enforce Western sanctions,” notes a European Parliament briefing from 2024.The Cook Islands was one of the “top countries whose flags are used by shadow tankers transporting Russian crude oil”, according to the report.- Growing fast -Shipping journal Lloyd’s List in 2024 crowned Maritime Cook Islands the “fastest growing registry” in the world.While Cook Islands’ fees are opaque, the revenue generated by shipping licenses is modest.Cook Islands budget documents estimate shipping registrations will bring in around US$50,000 this year.Maritime Cook Islands did not reply to a request for comment.The shipping registry has previously denied that it failed to conduct appropriate checks.”The Cook Islands register has never harboured sanctioned vessels,” Maritime Cook Islands told AFP in November last year.”Any sanctioned vessels are deleted.”

Oil and precious metals slid Thursday after US President Donald Trump appeared to dial down threats of imminent military action on Iran, while Asian markets were mixed after Wall Street edged lower the previous day.Oil prices dropped three percent after Trump said Wednesday he would “watch it and see” on possible intervention in the Islamic republic, after he said he had been told the killings of protesters there had stopped.Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on protests, sparking concerns over possible disruption to global supplies.Gold and silver also dipped on the news.Hong Kong, Shanghai, Taipei, Wellington, Mumbai and Kuala Lumpur fell on Thursday, while Sydney, Seoul, Bangkok and Manila posted minimal gains.The mixed picture in Asia came after Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and US data, which showed a 0.6 percent increase in retail sales in November.Analysts noted investor unease about possible US inverventions in Iran and Greenland, and Trump’s threats to Federal Reserve autonomy, most recently in the Department of Justice’s criminal probe of the central bank.Jack Ablin of Cresset Capital Management also pointed to Trump’s proposed 10 percent interest rate cap on credit cards as an unwelcome wildcard that has added to a broader sense of unpredictability.Meanwhile, the US Supreme Court held off a widely-anticipated ruling Wednesday on the legality of Trump’s sweeping tariffs.- South Korean won slides -Traders were also watching South Korea as the won’s exchange rate slid towards its weakest level in 16 years.In a rare mention, US Treasury Secretary Scott Bessent said Wednesday that the won’s depreciation was “not in line with Korea’s strong economic fundamentals” and that volatility in the foreign exchange market is “undesirable”.The won gained as much as one percent after Bessent’s comments, which he posted on social media after meeting Seoul’s finance minister Koo Yun-cheol in Washington. “Bessent’s comments can support the won in the near term, but markets may have more influence if they feel the fundamentals and politics are still in a worsening trajectory,” said Brendan McKenna, a strategist at Wells Fargo in New York.Tokyo was down 0.8 percent, cooling off after gains fuelled by speculation that Prime Minister Sanae Takaichi would call an election to capitalise on strong public approval ratings.Takaichi’s ruling party and a coalition partner said Wednesday she intends to dissolve parliament next week for a snap election.Takaichi’s cabinet approved a record 122.3-trillion-yen ($768 billion) budget for the fiscal year from April 2026, and she has vowed to get parliamentary approval as soon as possible to address inflation and shore up the world’s fourth-largest economy.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 53,820.46 (break)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 26,962.88Shanghai – Composite: DOWN 0.2 percent at 4,116.605West Texas Intermediate: DOWN 3.0 percent at $60.16 per barrelBrent North Sea Crude: DOWN 3.0 percent at $64.58 per barrelEuro/dollar: DOWN at $1.1640 from $1.1647 on WednesdayPound/dollar: FLAT at $1.3432 from $1.3433Dollar/yen: DOWN at 158.52 yen from 158.56 yenEuro/pound: DOWN at 86.65 pence from 86.68 penceNew York – Dow: DOWN 0.1 percent at 49,149.63 points (close)London – UP 0.5 percent at 10,184.35 (close)

Canadian Prime Minister Mark Carney is meeting with top Chinese leaders in Beijing on Thursday, hoping to repair a long acrimonious relationship as he pulls away from traditional ally the United States.Carney is the first Canadian leader to visit China in eight years and has said the two countries are at a “turning point” in their strained relations.Following President Donald Trump’s aggressive tariffs on Canadian products, Carney has sought to reduce his country’s economic reliance on its main market, the United States.Video from Chinese state media showed Carney arriving in Beijing for his four-day state visit late Wednesday evening to a red carpet welcome.He is scheduled to meet with Chinese President Xi Jinping and Premier Li Qiang, among other government and business leaders for trade talks.Ties between the two nations withered in 2018, when Canada arrested the daughter of Huawei’s founder on a US warrant, and China’s retaliatory detention of two Canadians on espionage charges.- ‘Right track’ -The two countries imposed tit-for-tat tariffs on each other’s exports in the years that ensued, with China also being accused of interfering in Canada’s elections.Caught in the tariffs crossfire were Chinese electric vehicles along with Canadian canola oil and other agricultural goods.The last time Chinese and Canadian leaders formally met was when then prime minister Justin Trudeau visited Beijing in 2017.But there have been signs of warming ties under Carney, who met Xi on the sidelines of an APEC summit in October.China has shown a willingness to rekindle the relationship, with Xi telling Carney after their meeting that it has “shown a recovery” towards “the right track”.Officials from the two countries have been in talks to lower tariffs, but an agreement has yet to be reached.Beijing, meanwhile, said this week it “attaches high importance” to Carney’s visit.- Pivot from US -Ottawa has traditionally been hawkish towards Beijing, positioning itself in alliance with the United States.But Canada has been hit especially hard by Trump’s steep tariffs on steel, aluminium, vehicles and lumber, prompting a change of heart.In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.But the United States remains far and away its largest market, buying around 75 percent Canadian exports in 2024, according to Canadian government statistics.While Ottawa has stressed that China is Canada’s second-largest market, it lags far behind, buying less than four percent of Canadian exports in 2024.Carney will be looking to raise that figure, with his office saying the visit aims to “elevate engagement on trade, energy, agriculture, and international security”.

Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and US data while oil prices jumped on rising tensions between Washington and Tehran.Executives with Citigroup, Bank of America and Wells Fargo described US consumers as resilient while releasing a batch of generally good earnings with no major bombshells.But shares of all three banks fell decisively.The broader market was also not buoyed by US data for November that showed a 0.6 percent increase in retail sales, topping expectations.Major indices spent most of the day firmly in the red, with the S&P 500 closing down 0.5 percent.”Investor attitudes are changing,” said Jack Ablin of Cresset Capital Management. “Some negativity is creeping in.”Ablin described investor unease about President Donald Trump’s threats to Federal Reserve autonomy, most recently in the Department of Justice’s criminal probe of the central bank. He also pointed to Trump’s proposed 10 percent interest rate cap on credit cards as an unwelcome wildcard that has added to a broader sense of unpredictability.There’s “uncertainty around these capricious policies and markets are already expensive,” Ablin said.Other topics that have dominated headlines include Trump’s ambitions to take over Greenland that have raised worry in Europe and a rise in rhetoric between the United States and Iran over the latter’s handling of protests.The latter issue helped propel oil prices about 1.5 percent higher.Iran warned the United States that it was capable of responding to any attack, as Washington appeared to be pulling personnel out of a base that Iran targeted in a strike last year.”Traders are closely watching the political unrest in Iran and possible US intervention, which could threaten disruption to the country’s…oil production,” said Helge Andre Martinsen, senior energy analyst at DNB Carnegie.In European stocks trading London set a fresh all-time high thanks to gains in mining stocks, but Frankfurt and Paris slid lower. Asian stock markets mostly gained.Tokyo shares jumped by 1.5 percent while the yen slumped to its lowest value since mid-2024 amid media reports that Prime Minister Sanae Takaichi planned to hold an election as soon as February 8.Takaichi’s cabinet — riding high in opinion polls — has approved a record 122.3-trillion-yen ($768 billion) budget for the fiscal year from April 2026.She has vowed to get parliamentary approval as soon as possible to address inflation and shore up the world’s fourth-largest economy.On the corporate front, British energy giant BP revealed a write-down of up to $5 billion linked to its energy transition efforts that will be reflected in the company’s upcoming annual results.Its share price traded lower most of the day but closed the day with a gain of 1.5 percent.- Key figures at around 2115 GMT -Brent North Sea Crude: UP 1.6 percent at $66.52 per barrelWest Texas Intermediate: UP 1.4 percent at $62.02 per barrelNew York – Dow: DOWN 0.1 percent at 49,124.17 pointsNew York – S&P 500: DOWN 0.7 percent at 6,917.81New York – Nasdaq Composite: DOWN 1.1 percent at 23,440.38London – FTSE 100: UP 0.5 percent at 10,184.35 (close)Paris – CAC 40: DOWN 0.2 percent at 8,330.97 (close)Frankfurt – DAX: DOWN 0.5 percent at 25,286.24 (close)Tokyo – Nikkei 225: UP 1.5 percent at 54,341.23 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 26,999.81 (close)Shanghai – Composite: DOWN 0.3 percent at 4,126.09 (close)Euro/dollar: UP at $1.1647 from $1.1641 on TuesdayPound/dollar: DOWN at $1.3433 from $1.3465Dollar/yen: DOWN at 158.56 yen from 158.14 yenEuro/pound: DOWN at 86.68 pence from 86.64 penceburs-jmb/sla

Oil prices rose further Wednesday on the political instability in major crude producer Iran and the possibility of a US intervention, which also helped push safe-haven gold to a new record high while weighing on the dollar.Wall Street’s main stock indices fell despite US retail sales posting a higher-than-expected 0.6 percent increase in November and several major US banks beating earnings expectations.”Things are looking a little softer at the moment, reflecting a heightened sense of uncertainty in the air,” said Briefing.com analyst Patrick O’Hare.”Some of that uncertainty revolves around the path of monetary policy after this morning’s economic data worked against the notion of needing to cut rates again soon,” he noted.Recent data has indicated the US economy continues to hum, the labour market has not seen a major degradation and inflation is holding at a moderate level above the US Federal Reserve’s target.The Fed has tipped it would probably wait to make further cuts in interest rates, and most investors expect it will likely hold off for several months.O’Hare also pointed to traders waiting for a possible US Supreme Court ruling on Wednesday on the legality of US President Donald Trump’s sweeping tariffs.A ruling against the government would prove a temporary setback to its economic and fiscal plans, though officials have said that tariffs can be reimposed by other means.Meanwhile, China said its trade last year reached a “new historical high”, surpassing 45 trillion yuan ($6.4 trillion) for the first time.Global demand for Chinese goods has held firm despite a slump in exports to the United States after Trump hiked tariffs.Other trade partners more than filled the gap, increasing Chinese exports overall by 5.5 percent in 2025.”We expect this resilience to continue through 2026,” said Zichun Huang, China economist at Capital Economics.Much attention among traders remained on Iran, with Tehran warning it was capable of responding to any US attack, as Washington appeared to be pulling personnel out of a base that Iran targeted in a strike last year.”Traders are closely watching the political unrest in Iran and possible US intervention, which could threaten disruption to the country’s… oil production,” said Helge Andre Martinsen, senior energy analyst at DNB Carnegie.In European stocks trading London set a fresh all-time high thanks to gains in mining stocks, but Frankfurt and Paris slid lower. Asian stock markets mostly gained.Tokyo shares jumped by 1.5 percent while the yen slumped to its lowest value since mid-2024 amid media reports that Prime Minister Sanae Takaichi planned to hold an election as soon as February 8.Takaichi’s cabinet — riding high in opinion polls — has approved a record 122.3-trillion-yen ($768 billion) budget for the fiscal year from April 2026.She has vowed to get parliamentary approval as soon as possible to address inflation and shore up the world’s fourth-largest economy.”We are seeing a shift in sentiment that could see European and Asian equities gain ground on their US counterparts,” said Joshua Mahony, chief market analyst at Scope Markets.On the corporate front, British energy giant BP revealed a write-down of up to $5 billion linked to its energy transition efforts that will be reflected in the company’s upcoming annual results.Its share price traded lower most of the day but closed the day with a gain of 1.5 percent.- Key figures at around 1630 GMT -Brent North Sea Crude: UP 0.8 percent at $65.96 per barrelWest Texas Intermediate: UP 0.7 percent at $61.35 per barrelNew York – Dow: DOWN 0.1 percent at 49,124.17 pointsNew York – S&P 500: DOWN 0.7 percent at 6,917.81New York – Nasdaq Composite: DOWN 1.1 percent at 23,440.38London – FTSE 100: UP 0.5 percent at 10,184.35 (close)Paris – CAC 40: DOWN 0.2 percent at 8,330.97 (close)Frankfurt – DAX: DOWN 0.5 percent at 25,286.24 (close)Tokyo – Nikkei 225: UP 1.5 percent at 54,341.23 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 26,999.81 (close)Shanghai – Composite: DOWN 0.3 percent at 4,126.09 (close)Euro/dollar: UP at $1.1656 from $1.1643 on TuesdayPound/dollar: UP at $1.3448 from $1.3426Dollar/yen: DOWN at 158.25 yen from 159.15 yenEuro/pound: DOWN at 86.66 pence from 86.71 penceburs-rl/cw

A Dutch court held hearings Wednesday to weigh whether to order an investigation into Nexperia, a Chinese-owned chip company at the centre of a global tug-of-war over critical semiconductor technology.The firm, based in the Netherlands but whose parent company is China’s Wingtech, has been the subject of a standoff between Beijing and the West that threatened to cripple car manufacturers that rely on its chips.The Dutch state in September invoked a 1952 law to effectively seize control of the company, sparking fury in Beijing.The Amsterdam-based Enterprise Chamber also played a major part in the battle over Nexperia in October when it suspended the firm’s Chinese CEO, Zhang Xuezheng, also known as Wing, citing concerns over his management.Lawyers for Nexperia on Wednesday accused Wingtech of a “scorched earth” policy in its bid to wrest control of the company.”Wingtech is doing everything to destabilise Nexperia, already under pressure from a crisis situation,” said one of Nexperia’s lawyers, Jeroen van der Schrieck.- ‘Mystery’ -Zhang Xuezheng did not appear at the hearings. His lawyer said he was not in a strong enough state to attend, as this case was taking a personal toll on him.”The intervention (by the Dutch government) and especially the way it was handled, is incomprehensible for Mr Wing,” said Jan Bart van de Hel, a lawyer for the Chinese tycoon.”It should never have happened. The situation degenerated needlessly,” he added.Dirk-Jan Duynstee, a lawyer for the Wingtech company, said “the real reasons that led the minister to intervene remain a mystery.” Judges said they expected to issue a ruling on whether to order an investigation within four weeks at the latest.The court could order an investigation “if it has valid reasons to doubt the sound policy and business operations at Nexperia”, it said in a statement.If the court does decide to order an investigation, it can also maintain or amend its decisions made in October.If however the court decides no investigation is required, the decisions it made in October will no longer be in force.In late October, following trade talks between China’s President Xi Jinping and his US counterpart Donald Trump, Beijing agreed to resume exports of Nexperia chips halted over the row.In response, the Dutch government said it was suspending its emergency takeover move as a “constructive step” hailed by Beijing.But while the political clash has died down for the moment, all eyes are on the court to see whether it will order a probe.