Markets Juggle Tariffs, Gold Surge and Pharma Shake-Ups Amid Shutdown Risks

Global markets are digesting record gold prices, pharma sector shocks, and bold corporate deals against the backdrop of U.S. shutdown risks. Here’s what traders are watching.

Introduction

Global markets are navigating a complex landscape marked by shifting trade policies, record gold highs, and bold corporate deals. From Genmab’s $8 billion bet on biotech to Trump’s tariff talk shaking pharma stocks, investors are weighing safe-haven flows against fresh risks. At the same time, currency markets, oil, and tech continue to set the pace as earnings season approaches.

Gold Hits Record Highs

Gold prices surged past $3,800/oz, driven by U.S. government shutdown concerns and growing expectations of Fed rate cuts. Silver, platinum, and palladium followed suit, reinforcing the demand for safe-haven assets. Citi analysts flagged strong upside potential for European metals and mining stocks, linking the rally to bullish sentiment in gold and silver.

Pharma Under Pressure

Pharmaceutical stocks in Europe and Asia took a hit after reports of 100% tariffs on U.S. pharma imports, unsettling global supply chains. While the White House later signaled a softer 15% cap under trade deals, the sector remained volatile. Major players like AstraZeneca, Novartis, and CSL saw losses, underscoring the sector’s sensitivity to policy headlines.

Corporate Shake-Ups

The deal space stayed hot with Genmab acquiring Merus in an $8 billion all-cash deal, strengthening its oncology pipeline. Meanwhile, Occidental advanced talks to sell its OxyChem unit for $10 billion, and Synlait shares surged after a $177 million asset sale. In tech, Apple is quietly testing a ChatGPT-like app to power its next-gen Siri overhaul, while Electronic Arts soared on private buyout buzz valued near $50 billion.

Asia Market Momentum

Asian equities rose on tech strength, though Japan lagged. BYD projected exports could exceed 20% of sales in 2025, and Sony Financial spiked 40% after its spinoff debut. On the FX side, the dollar dipped as shutdown risks dented confidence, with JPY and KRW leading gains against the greenback.

Oil and Energy Trends

Oil prices softened after reports OPEC+ may raise output, tempering the recent rally. Still, supply-side uncertainties, including geopolitical risks, kept the market on edge. In parallel, global discussions around nuclear and renewable energy highlighted the sector’s evolving role in supporting AI and industrial demand.

SGFX Summary

From safe-haven gold to corporate megadeals, markets remain highly reactive to both policy shifts and macroeconomic uncertainties. With U.S. shutdown risks, inflation data, and earnings season ahead, investors must balance opportunity with caution.