European and Asian shares sit at record highs

World ?shares have hovered around record highs as traders found ways to justify why increasingly complicated world economics and politics would not affect stocks, though jitters were apparent in precious metal and ?oil markets.

Investors on Wednesday were trying to balance those big-picture concerns with what will be a busy day in terms of short-term developments with US corporate earnings gathering pace, a raft of Federal Reserve ?speakers and the possibility of a Supreme Court ruling on tariffs.

Before that, broad share indices in Asia and Europe rose to record peaks, with the former buoyed by Japanese markets as investors braced for a possible election that could lead to more stimulus there.

US share futures dropped 0.2 per cent, however.

"We are starting the year as we left off last, people are very positive towards equities, and within that there is a slow burn rotation from the U.S to the rest of the world, whether out of conviction or risk management, is ?hard to say," said ?Ben Laidler, head of equity strategy at Bradesco BBI.

"What's different is policy uncertainty, led by the US, has spiked, and that's generated headlines around 'sell America'.

"While that ?hasn't happened - the dollar's got a bit of a safe haven bid - we are seeing it play out in this incredible metal rally."

Silver rose above $US90 per ounce for the first time on Wednesday.

It began 2025 under $US30 an ounce, and has surged 27 per cent in the first nine trading days of 2026.

Gold is back at record highs, and up seven per cent in the first two weeks of 2026, while copper is also at unprecedented levels.

Fears about everything from Federal Reserve independence to the pressure US aspirations to own Greenland is putting ?on the NATO alliance via the implications of large protests in Iran are still firmly near the ?top of investors' minds.

Iran has also been driving oil prices, though on Wednesday Brent dipped from Tuesday's over two-month top and was last at $US64.90 a barrel.

Even if investors do not have to make time ?for thinking about great-power politics and the importance of central bank independence, Wednesday is busy.

A US Supreme Court ruling on the legality of ?President Donald Trump's tariffs could come later in the day, while Citigroup, Wells Fargo and Bank of America are due to report fourth-quarter results.

JPMorgan Chase on Tuesday said its profit exceeded analysts' estimates as its traders cashed in on volatile markets, though its shares fell as investment banking revenue missed.

Earlier, Japan was the main focus after reports that Prime Minister Sanae ?Takaichi was considering calling a snap lower house election on February 8.

That sent the Nikkei up more than one per cent to a record and pushed Japanese government bonds lower, a "Takaichi trade" that appears to have been turbocharged this week as investors fret about the country's fiscal health.

That is bad news for the Japanese yen, which fell to its weakest level since July 2024 and was last at 159.29 per dollar, with Japanese authorities warning they might intervene directly in markets to stop its slide.

Other currencies were broadly steady, with the euro flat at $US1.1648.

China stocks reversed course to trade 0.4 per cent lower after Chinese stock exchanges tightened margin requirements in a surprise move to cool the red-hot equity market.

Blue-chip stocks had hit a 10-year high on Tuesday.

Investors mostly looked past ?trade data where China reported a record trade surplus of nearly $US1.2 trillion ($A1.8 trillion) in 2025, led by booming exports to non-US markets.