Equities sink, gold and silver hit highs

ASIAN markets extended losses yesterday, while precious metals hit fresh peaks on fears of a US-EU trade war fuelled by Donald Trump's tariff threat over opposition to his grab for Greenland.

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A jeweller shows gold and silver bars at his shop in downtown Kuwait City.

(AFP)

After a bright start to the year fuelled by fresh hopes for the artificial intelligence sector, investors have taken fright since the US president ramped up his demands for the Danish autonomous territory, citing national security.

With Copenhagen and other European capitals pushing back, Trump on Saturday said he would impose 10% levies on eight countries including Denmark, France, Germany and Britain from February 1, lifting them to 25% on June 1.

The move has raised questions about the outlook for last year's US-EU trade deal, while French President Emmanuel Macron has called for the deployment of a powerful, unused instrument aimed at deterring economic coercion.