Gold has surged back above the $5,000 level, driven by a significant warning from China that is also weighing on an early stock market rebound from oversold conditions. Chinese authorities have advised domestic financial institutions to reduce existing exposure to U.S. Treasuries and limit new purchases. While China is framing the move as diversification rather than a loss of confidence, it is a meaningful shift given that Chinese banks are among the largest holders of U.S. government debt. This development has increased demand for perceived safe havens and added a new layer of geopolitical risk for equity markets.
Another major global catalyst is Japan’s historic election outcome, where Prime Minister Takaichi secured a parliamentary supermajority. Japanese stocks have rallied on expectations of political stability, closer alignment with the U.S., firmer policies toward China, and stronger support for Taiwan. The victory also has mixed implications for the yen carry trade, which remains critical for global capital flows, particularly into U.S. technology stocks. Increased defense spending is likely, potentially benefiting aerospace and defense sectors as Japan deepens strategic ties with the U.S.
In healthcare, regulatory pressure has intensified on copycat weight-loss drugs. FDA action has forced a reversal by one major seller, lifting established pharmaceutical players and highlighting regulatory risk in the space. Market attention remains focused on $GC_F, $EWJ, $NVO, $LLY, and $HIMS.
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