$BTC $ETH Global financial markets opened on Tuesday with a cautious tone as investors weighed geopolitical tensions, regulatory scrutiny in the technology sector, and diplomatic developments across several regions.
Holiday-thinned trading in Asia, US military movements ahead of Iran negotiations, an investigation into Elon Musk’s X platform, and renewed US–Cuba dialogue were the main developments.
Asian markets tread carefully
Asian financial markets moved cautiously on Tuesday, with several major exchanges shut for Lunar New Year holidays.
Mainland China, Hong Kong, Singapore, Taiwan, and South Korea remained closed, while US markets had been shut Monday for Presidents’ Day.
Japan’s Nikkei fell 0.77%, and the broader Topix slipped 0.81% to 3,756.86, while Australia’s S&P/ASX200 rose about 0.24%.
US futures were mixed, with Nasdaq futures down 0.8% and S&P 500 futures up 0.5%.
Bond yields edged lower, with the U.S. 10-year Treasury yield falling 1 basis point to 4.044%, the lowest since early December.
Japan’s five-year yield also dropped to 1.65%. The dollar index held steady at 97.07.
Japan’s economic outlook remained in focus after GDP expanded just 0.2% annualized in the fourth quarter, far below the 1.6% forecast.
Economists suggested the weak data could support fiscal stimulus from Prime Minister Sanae Takaichi and temper expectations for Bank of Japan tightening.
Oil prices fell, with West Texas Intermediate falling 1.29% and Brent crude trading down 1.33%.
Gold fell 2.12% while silver declined 3.6%.
US deploys military assets before Iran nuclear negotiations
Geopolitical risks intensified as the US moved air and naval assets closer to the Middle East before nuclear negotiations with Iran in Geneva, reported CNN.
Fighter jets, refueling tankers, and air defense systems have been repositioned, and over 250 US cargo flights have delivered equipment to Jordan, Bahrain, and Saudi Arabia.
Two carrier strike groups — USS Abraham Lincoln and USS Gerald Ford — are now in the region, expanding US military strike options if talks fail.
President Donald Trump warned, "I think they’ll be successful. If they’re not, it’s going to be a very bad day for Iran."
Secretary of State Marco Rubio emphasized the difficulty of negotiations, saying:
“Iran ultimately is governed and its decisions are governed by Shia clerics — radical Shia clerics, okay? These people make policy decisions on the basis of pure theology. That’s how they make their decisions. So, it’s hard to do a deal with Iran.”
Regional allies are urging restraint, with one diplomat saying:
“Everybody is pushing against a strike.”
Ireland opens investigation into X over Grok AI images
Ireland’s Data Protection Commission opened a “large-scale inquiry” into X over alleged sexualized images generated by the Grok AI chatbot.
The investigation will assess whether the platform complied with its obligations regarding the processing of EU users’ personal data under GDPR rules.
Regulators became concerned after users prompted Grok to alter personal photos without consent, potentially creating child sexual abuse material.
Deputy Commissioner Graham Doyle said the inquiry would examine compliance with “fundamental obligations under the GDPR.”
The probe follows rising political backlash and criticism from child-safety advocates and regulators, including the UK communications watchdog Ofcom.
US engages with Cuba as economic pressures mount
Separately, President Trump confirmed US officials are in communication with Cuba as the country faces worsening economic conditions.
“We’re talking to Cuba right now, and Marco Rubio is talking to Cuba right now,” Trump said.
He added, “Cuba should absolutely make a deal because it’s a humanitarian threat.”
The discussions come after Venezuela’s political upheaval disrupted Cuba’s economic support.
Trump also noted the ongoing embargo, saying, “In the meantime, there’s an embargo, there’s no oil, there’s no money, there’s no anything.”
The administration is considering humanitarian assistance, though Rubio declined to discuss regime-change scenarios, saying, “We’ll follow whatever the law is on it.”
