Markets on Alert: Tariffs, Oil Swings and Inflation Signals Ahead

Markets are on edge as politics, policy, and corporate deals collide. Pharma shares in Europe and Asia dropped sharply after Trump unveiled plans for a 100% tariff on drug imports, while Intel surged on reports of U.S. efforts to reduce semiconductor reliance. Gold steadied near highs, oil pulled back, and M&A headlines added fresh momentum. For traders, the coming U.S. PCE inflation report could determine the next big move.

Pharma Stocks Under Fire

Pharmaceutical shares in Europe and Asia came under heavy pressure after former President Trump announced plans for a 100% tariff on imported drugs. Companies including Eli Lilly (-3.67%), Novartis, and several Asian pharma names sold off sharply as traders recalibrated expectations for supply chains and global healthcare pricing. The policy threat amplified volatility across the sector, highlighting the growing role of trade politics in shaping market sentiment.

Tech Shifts: Intel Surges, Apple Pushes Back

Tech stocks once again took center stage. Intel (+8.87%) rallied strongly on reports that the U.S. is preparing measures to reduce reliance on overseas semiconductor imports, a move seen as supportive for domestic chipmakers. Apple, meanwhile, gained +1.81% even as it pressed the European Union to scale back the Digital Markets Act, underscoring the ongoing friction between regulators and Big Tech. Elsewhere, Tesla (-4.38%) retreated after RBC noted delivery momentum may not offset broader EV market headwinds.

Commodities and Currencies

Gold remained steady near record highs, trading flat at XAU/USD -0.03%, with investors balancing tariff headlines against the safe-haven bid. Oil prices eased after touching a seven-week high, with Brent (-0.38%) and WTI (-0.42%) cooling on profit-taking despite supply risks tied to Russia. In currency markets, Asia FX weakened, with the yen, yuan, and won all facing pressure as traders braced for upcoming U.S. PCE inflation data, a potential trigger for the next wave of dollar moves.

Corporate and Deal Flow Highlights

Deal activity continued to shape market direction. Prosus-owned OLX confirmed a €1.1 billion acquisition of French auto marketplace La Centrale, expanding its European footprint. In aviation, Turkish Airlines agreed to buy up to 225 Boeing planes, signaling confidence in long-term travel demand. On the fintech side, DB Insurance of South Korea announced a $1.7 billion acquisition of U.S.-based Fortegra, further underlining cross-border appetite for insurance and financial services growth.

SGFX Summary

Markets are being pulled in different directions with tariff shocks shaking pharma, policy shifts boosting U.S. chipmakers, and IPO and M&A activity injecting fresh momentum into select sectors. Safe-haven flows remain resilient, while oil’s pullback signals caution after strong gains. For traders, the key lies in positioning around policy-driven volatility and spotting opportunities in tech, energy, and cross-border corporate plays.