Global Markets See-Saw Amid Tech Optimism and Policy Uncertainty

Global Markets Experience Mixed Trading

As the week begins, global shares are exhibiting a mixed performance, with European benchmarks declining while Asian markets draw optimism from rising technology stocks on Wall Street.

European Markets Slip

France’s CAC 40 fell 0.3% to 7,427.40, while Germany’s DAX declined 0.1% to 20,186.45. Britain’s FTSE 100 lost 0.5% to 8,212.10. Meanwhile, U.S. shares are expected to drift lower, with Dow futures down less than 0.1% to 42,950.00, and S&P 500 futures shedding nearly 0.1% to 6,016.25.

Asian Markets Show Resilience

In contrast, Japan’s benchmark Nikkei 225 jumped nearly 2.0% to finish at 40,083.30. Australia’s S&P/ASX 200 edged up 0.3% to 8,285.10, while South Korea’s Kospi added 0.1% to 2,492.10. However, Hong Kong’s Hang Seng index slid 1.2% to 19,447.58, largely due to a 7.3% plunge in shares of technology and games company Tencent following U.S. sanctions.

Steel Industry in Focus

Nippon Steel, whose attempt to take over U.S. Steel is being blocked by the Biden administration, slid 1.5% in Tokyo trading. However, U.S. Steel climbed 8.1% overnight after it and Japan’s Nippon Steel filed a federal lawsuit challenging President Joe Biden’s decision to block the proposed nearly $15 billion deal.

Investors Eye Policy Changes

As the new administration prepares to take office, investors are watching for possible policy changes that could impact the market. According to Stephen Innes, managing partner at SPI Asset Management, “The convergence of these financial indicators points to a heightened alert among traders, who carefully calibrate their strategies for potential shifts in policy and economic directives that the new administration may bring.”

AI Stocks Continue to Climb

Despite concerns over valuation, Nvidia and other AI stocks have continued to rise recently. Meanwhile, the New York Stock Exchange and Nasdaq will close their stock and options markets on Thursday in observance of a National Day of Mourning for former President Jimmy Carter.

Key Economic Indicators Ahead

Later in the week, the Federal Reserve will release minutes from its last policy meeting, where it cut its main interest rate for a third straight time. The monthly jobs report, along with an update on U.S. consumer sentiment, are set for Friday. The economy has remained resilient so far, but worries are rising that tariffs and other policies could push inflation higher.

Energy and Currency Markets

In energy trading, benchmark U.S. crude declined 23 cents to $73.33 a barrel, while Brent crude fell 20 cents to $76.10 a barrel. In currency trading, the U.S. dollar rose to 157.44 Japanese yen from 157.65 yen, and the euro cost $1.0407, up from $1.0391.

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