Goldman Sachs analysts said the recent spate of devastating wildfires in Los Angeles County, California, could be the most costly wildfire event in Californian history, and were likely to factor into upcoming U.S. economic data. 

The latest US jobs report for December revealed a robust labor market, surpassing expectations with a significant increase in payrolls. The economy added 256,000 jobs, compared to a revised figure of 212,000 in November. This growth has set the three-month moving average at approximately 170,000 jobs.

Supertanker freight rates jumped after the U.S. expanded sanctions on Russian oil trade and sent traders rushing to book ships to pick up supply from other countries to go to China and India, shipbrokers and traders said.

China’s economic growth is expected to slow to 4.0% in 2025 as it contends with potential US tariff hikes and ongoing property sector challenges, according to a UBS research note.

Asian stocks were mixed on Tuesday, with Chinese stocks jumping on reports of a gradual U.S. tariff increase under Donald Trump, while sharp declines in Japanese shares pressured other regional equities.

The dollar hovered near its highest level in more than two years on Tuesday as traders scale back wagers on U.S. rate cuts in 2025 after strong economic data, while investor worries about Britain's fiscal health kept frail sterling in the spotlight.