President Donald Trump is expected to name Kevin Warsh as the new Federal Reserve Chairman later this morning, according to Bloomberg. The news, circulating ahead of an official announcement, has already sent ripples through global markets, prompting a notable appreciation of the U.S. dollar and a sharp correction in precious metals, reversing some of their recent gains.
The dollar’s strengthening and gold’s retreat are particularly significant given the currency’s weakness and the metal’s relentless climb over the past few days. Investors appear to be bracing for a more hawkish stance from the U.S. central bank under Warsh.
Amidst these shifts, Europe’s economic landscape continues to surprise on the upside. Spain’s economy led the continent’s recovery, expanding by a robust 0.8% in the fourth quarter of 2025, surpassing analyst expectations of 0.6%. With 2.8% growth for the entirety of 2025, Spain claimed the title of the fastest-growing major developed economy. France also defied political gridlock to post a 0.2% expansion, in line with market expectations, contributing to an overall Eurozone growth of 0.3% in 4Q25, exceeding forecasts of 0.2%.
In a move highlighting shifting geopolitical alliances and trade diversification, British Prime Minister Keir Starmer became the fifth global leader this year to visit Beijing, signaling an effort to mend ties with China and reduce reliance on the United States.
On the corporate front, Apple Inc. reported record fourth-quarter numbers and an upbeat forecast. However, investor enthusiasm was tempered by concerns over rising cost pressures, which could impact future margins.
European stocks responded positively to the economic data, rising 0.7%, with Spain’s IBEX 35 index leading the charge with a 1.2% increase. Japan traded flat, while Chinese equities saw losses of between 1% and 2%. U.S. futures were down around 1%, primarily led by technology stocks as concerns about higher AI-related capital expenditures weighed on sentiment.
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