Before the bell: Donald Trump sows unrest

As Donald Trump targets Iran and the Fed, Japanese markets surge on a weak yen and the prospect of snap elections.

While the average European stock gained 0.3%, Brussels’ Bel20 slipped 0.5%. Shares of Lotus Bakeries (+1.5%) broke away from the pack. The biscuit maker has already seen its market value rise by more than 11% this year. Argenx (-3.2%) was the biggest loser within the Bel20 after publishing its quarterly revenue figures in a strategic update. On the other side of the Atlantic, the S&P 500 (+0.2%) and the Nasdaq (+0.3%) edged modestly higher. Oil and gold prices rose after Donald Trump imposed a 25% tariff on countries trading with Iran.

In Asia this morning, Japan’s Topix and Nikkei indices are up 2.4% and 3.2% respectively. Investors are hoping for fiscal stimulus. At the same time, Japanese Prime Minister Sanae Takaichi is considering calling early elections to capitalise on her popularity and strengthen her parliamentary majority and political clout. In Hong Kong, the Hang Seng Index is up 0.6%. Later today, we will see the first figures of the new earnings season. JPMorgan Chase and Bank of New York Mellon, together with airline Delta Air Lines, will kick off the reporting season. On the macroeconomic front, the US inflation figures for December are due today.

The American consumer and debt

In 2024, Americans collectively paid 160 billion dollars in interest on credit card debt. That figure was 50% higher than in 2022. By the end of 2025, Americans had around 1.23 trillion dollars in outstanding credit card balances. On average, an American with credit card debt carries an outstanding balance of nearly 8,000 dollars. “Too much,” Donald Trump also believes, which is why he now wants to cap credit card interest rates in the United States at 10% for one year. According to the US president, credit card companies have profited from consumers for long enough. Current credit card interest rates are far higher, ranging from just under 18% for borrowers with an excellent credit score to nearly 36% for those with a low credit score. A maximum rate of 10% could significantly hit the margins of Visa (-1.9%), Mastercard (-1.6%) and the younger Klarna (-2.7%).

Europe gives Chinese carmakers a helping hand

The European Commission may replace tariffs on Chinese cars with a fixed minimum price. In addition, there could be a cap on the number of Chinese vehicles exported to the EU, and Chinese companies would be required to invest within the EU. The current tariff of 27% on some Chinese electric vehicles would then be scrapped, which could be good news for the margins of Chinese manufacturers. Shares of BYD (+4.8%), Xpeng (+2.8%) and SAIC Motor (+3.6%) therefore rose sharply earlier this morning on the Hong Kong stock exchange. However, the stocks were unable to hold on to those gains.

Did you know…

that toy maker Mattel launched an autistic Barbie doll this weekend? According to the company, “every child deserves to see themselves in a Barbie.” Mattel has previously introduced blind Barbie dolls and models representing Down syndrome and diabetes as well.

This article was translated from Dutch and was originally published on Spaarvarkens.be.