Business & Tech News
Oil Prices Plunge:
Brent Crude Prices dropped by -1,02% while WTI crude oil futures fell 1,65% to below $72 per barrel in trade this morning following China’s announcement that it would introduce tariffs on a range of U.S. imports to China. This was in response to the 10% tariff President Donald Trump had imposed on Chinese imports to the US.
This has raised concerns about a potential trade war between the world’s two largest economies. China said it will impose tariffs of 15% on coal and LNG imports from the U.S. and 10% on crude oil, farm equipment, and certain cars, effective February 10. This move came after the passing of a deadline that imposed a 10% U.S. tariff on all Chinese goods. Trump had earlier delayed planned levies on Canada and Mexico by a month after both countries agreed to boost border enforcement to address Trump’s concerns over immigration and drug smuggling. Elsewhere, OPEC and its allies upheld their existing oil production plans at a review meeting on Monday, despite Trump’s calls to lower crude prices by expanding output.
TikTok Targeted as US Sovereign Wealth Fund Purchase:
US President Donald Trump has signed an executive order, establishing the first US Sovereign Wealth Fund, that he had promised to create during his election campaign. The fund would apparently be established using tariff income from his newly directed import tariffs on goods from China and other regions. Trump has also indicated that the fund could be used to acquire the US TikTok social media business that was banned by ex-president Biden on grounds that the data from US citizens was being shared by the social media platform, with the Chinese government. There are multiple countries with sovereign wealth funds, where surplus income is invested to create future benefits for the countries. However, the US currently runs a budget deficit so funding would have to come from either savings or from additional income created.
US Treasury Secretary Scott Bessent said the fund would be set up within the next 12 months and that the plan was to monetise assets currently owned by the US government “for the American people”. Saudi Arabia and Norway have two of the world’s largest sovereign wealth funds, that derive their income from the proceeds of fossil fuel sales. The funds have been utilised to invest in companies and various development projects around the world.
Gold Hits All-Time-High:
Gold hit a record high in trade this morning of $2,816 per ounce continuing the upward trend in the previous trading session. Mainly driven by investor concerns of what the fall-out could be from the current trade tariff war, that prompted safe-haven investing. China announced retaliatory tariffs on U.S. goods yesterday after President Donald Trump’s 10% levy on Chinese imports came into effect. Trump announced late yesterday to delay duties on Mexico and Canada for a month after both countries agreed to take steps to address border security and drug trafficking.
The inflationary impact of tariffs is likely to bolster gold’s appeal as a hedge against price pressures and geopolitical uncertainty. There will be keen interest from investors this week over labour data releases, and in particular, Friday’s nonfarm payrolls report, which should offer more insights into the strength of the U.S. economy and may influence the Federal Reserve’s future interest policy decisions.
Market News
Currencies:
The US Dollar is currently trading at 1.03294 against the Euro, at 1.24058 against the Pound, and at 155.20 Yen to the dollar currently. The rand is currently trading slightly up and is currently at R18.74 to the dollar.
Commodities:
- Gold prices have hit new record levels, with the price currently at $2,813 after hitting $2816 per ounce. Copper is trading upwards today and currently trading at 4.3107, while Silver is also trading higher this morning, and at 31.581 currently.
- Platinum prices have dipped below $1000 and is currently trading at $991, while Palladium prices have Maintained above the $1000 level, but is slightly softer today and currently at $1049
- Oil prices are trading lower this morning, with Brent oil currently trading at $75.12 currently with WTI also trading lower, and at $71.82 currently.
- Cocoa futures have been trading upwards this morning with prices currently at $11 008 per ton.
- Coffee prices continue their upwards trajectory, and at $384.55 currently.
Crypto Currencies:
- Bitcoin regained some ground overnight after dropping well below the $100 000 mark yesterday, and is currently trading at $98086.
- Ether prices are currently making little gain from the losses incurred this week, with the crypto trading at $2681 currently.
- $Trumpcoin is currently trading at its all-time low since launch last month at $17.44
(All prices quoted at approximately 10H40 – Central African Time)
Other News in Africa Today
Rebel Military Group in DRC Declares Ceasefire:
A statement issued by the alliance of rebel groups in eastern Democratic Republic of Congo has said that it has declared a humanitarian ceasefire that was to begin this morning (4 Feb). The militia group – which includes the Rwanda-backed M23 rebels – cited “humanitarian reasons” for the ceasefire, after it had captured large treritories in Eastern DRC including the city of Goma. The United Nations have indicated that at least 900 people have been killed and 2,880 injured in recent fighting in and around Goma. The G7 nations and the EU have condemned the offensive as a clear violation of DR Congo’s sovereignty. The Alliance of Rebel group has also stated that it does not intend to seize any further territory, despite having issued comments to the contrary last week where the leader said they would march all the way to the capital Kinshasa.
In a statement, the alliance said: “We reiterate our commitment to protecting and defending the civilian population and our positions.” Since the start of 2025, more than 400,000 people have been forced from their homes, according to the UN’s refugee agency.