International News 08 October 2025
-
Gold Breaks $3,900 as Yen Slump and U.S. Shutdown Fuel Safe-Haven Buying
Gold prices surged past $3,900 per ounce for the first time on Monday (Oct 6, 2025), powered by safe-haven demand amid a weak yen and a continuing U.S. government shutdown. Spot gold climbed 0.9% to $3,922.28, touching a high of $3,924.39 earlier in the session, while December futures gained 1% to $3,947.30. The yen’s sharp drop after Sanae Takaichi’s win in Japan deprived global investors of a traditional haven, redirecting flows toward gold. Meanwhile, the extended U.S. shutdown intensified worries about GDP and economic stability, further bolstering demand. Market expectations for further Fed rate cuts supported the rally. With Governor Stephen Miran advocating more aggressive easing and shutdown risks rising—including threats of mass federal layoffs—investors leaned into gold’s appeal as a non-yielding hedge. The metal is up nearly 49% year-to-date, following a 27% gain in 2024, boosted by central bank buying, ETF inflows, and dollar weakness. Meanwhile, silver rose 0.8% to $48.33, platinum added 1.1% to $1,621.90, and palladium increased 0.8% to $1,270.25.
Nikkei 225 Surges Past 46,000 as Market Embraces Takaichi’s Win
Japan’s Nikkei 225 broke through 46,000 points for the first time on Monday (Oct 6, 2025), jumping 2.8% to 47,061.07, while the broader Topix index rose 2.1%. The rally followed Sanae Takaichi’s victory in the LDP leadership race, positioning her to become Japan’s next prime minister. Her pro-stimulus, expansionary fiscal and monetary stance has fueled investor optimism and expectations of aggressive economic policy shifts. Two-year Japanese government bond yields fell 5 basis points to 0.89%, signaling market belief that the Bank of Japan (BOJ) is unlikely to tighten policy soon. Meanwhile, the yen weakened by over 1% versus both the U.S. dollar and the euro. Traders have already coined the “Takaichi trade” — dumping government bonds and buying equities — betting that her leadership will usher in a renewed era of Abenomics-style stimulus and equity-friendly policies.
U.S. to Impose 25% Tariff on Imported Medium and Heavy Trucks
President Donald Trump announced on Monday (Oct 6, 2025) that all medium- and heavy-duty trucks imported into the United States will face a 25% tariff, starting November 1, 2025. This move ups the ante in his trade agenda, intended to shield domestic manufacturers from what he calls “unfair outside competition,” citing national security as part of the rationale. The announcement follows prior statements that heavy trucks would be subject to new duties effective October 1. While the U.S. already maintains 15% tariffs on light-duty vehicles under deals with Japan and the EU, it remains unclear whether that rate will apply to larger vehicles. Under USMCA, medium and heavy trucks are tariff-exempt if at least 64% of their components originate in North America.  Mexico, which has seen its medium/heavy truck exports to the U.S. triple since 2019, is among the countries likely to be most affected.