Markets around the world are experiencing a tumultuous day, with global fixed income taking a hit and European bourses plunging on renewed trade tensions. The Japanese yen is leading the way, driven by concerns over fiscal policy, while US equity futures are also under pressure.

The European bourses are entirely in the red, with sentiment taking a hit due to renewed trade tensions between the US and China. The UK’s FTSE index is down by 1.5%, Germany’s DAX is off by 2%, and France’s CAC 40 is down by 2.5%. Investors are growing increasingly nervous about the potential impact of trade wars on global growth, which is weighing heavily on market sentiment.

In the US, equity futures are also under pressure, with the Dow Jones Industrial Average and S&P 500 both down by around 1%. The tech-heavy Nasdaq Composite is off by 2.1%, led lower by a decline in shares of Apple and Amazon.

The US dollar is also under pressure, with the DXY index hitting lows for the day. The Swiss franc is leading the way higher, while the euro is topping 1.1700 against the greenback. The pound sterling is also performing well, up by 0.5% against the dollar.

In commodities, crude oil prices are choppy with specifics light, while gold and silver continue to make new highs. Brent crude is off by around 0.5%, while West Texas Intermediate is down by around 1%. The price of gold is up by 0.2%, while silver is off by around 0.3%.

In geopolitical news, US President Trump has threatened to impose 200% tariffs on French wines and Champagne in response to France’s decision to decline an invitation to join his “Board of Peace”. Meanwhile, the US President has also expressed optimism about his upcoming meeting with NATO Secretary General Rutte and has agreed to meet various parties in Davos.

Looking ahead, highlights include ADP Employment Change Weekly, US Treasury Secretary Bessent, ECB’s Nagel, SNB’s Schlegel, and earnings from Netflix. These events are likely to provide further insight into the health of the global economy and could have a significant impact on market sentiment.