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In the emerging world order, Europe and China’s interests align

The Iran war has declared the death of the old global order. Europe wasn’t even consulted before Washington struck Iran alongside Israel – proof the continent is trapped between moral outrage and geopolitical irrelevance. If Europe wants to matter, it must shift its gaze eastwards, redefining China not as a binary adversary but as a balancing power. This is the path from Atlantic dependence to Eurasian relevance. For China, too, this moment is pivotal. US President Donald Trump has launched wars...

Mar 07, 2026 &03300707202631; 12:30 UTC www.scmp.com Trending 3/5

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Negative for markets

Sentiment score: -65/100

High impact Medium-term (weeks)

WHAT THIS MEANS

Geopolitical tensions between US-Israel and Iran are reshaping global alliances, with Europe increasingly sidelined from US decision-making. The article suggests Europe must pivot toward China as a strategic counterbalance to reduce Atlantic dependence and regain geopolitical relevance in a multipolar world order.

AI CONFIDENCE

72% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

Euro / US Dollar

EURUSDCurrency

Expected to decline

European geopolitical uncertainty and potential shift away from US alliance could weaken EUR relative to USD amid policy divergence

⇅

Euro Stoxx 50

^STOXX50EIndex

High volatility expected

European equities face headwinds from geopolitical tensions, US-Iran conflict escalation, and uncertainty over Europe's strategic realignment

⇅

S&P 500

^GSPCIndex

High volatility expected

US equity markets sensitive to Middle East tensions, potential trade friction from Europe-China realignment, and policy uncertainty under Trump administration

↑

Oil (WTI Crude)

CL=FCommodity

Expected to rise

Iran tensions and potential supply disruptions in Middle East support crude oil prices amid geopolitical risk premium

↑

Gold Futures

GC=FCommodity

Expected to rise

Safe-haven demand increases amid escalating geopolitical tensions and global order uncertainty

PRICE HISTORY

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⚡ SUGGESTED ACTION

Reduce exposure to transatlantic-dependent sectors; increase defensive positions in commodities (gold, oil) and safe-haven assets. Monitor European-China trade developments and US-Iran escalation closely for medium-term portfolio adjustments.

KEY SIGNALS

Geopolitical realignment: Europe-China strategic pivotUS-Iran military escalation riskTransatlantic alliance strainMultipolar world order emergenceSafe-haven asset demand increaseEnergy security concerns

SECTORS INVOLVED

Defense & AerospaceEnergyTechnologyFinancialsIndustrials

Analysis generated on Mar 09, 2026 at 17:51 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

In the emerging world order, Europe and China’s interests align

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