Global Markets Take a Breather as US Stocks Edge Back
The global stock market experienced a mixed bag on Monday, with many Asian markets closed for holidays. In Europe, Germany’s DAX plummeted 1.1% to 21,178.37, while the CAC 40 in Paris shed 0.8% to 7,863.70. Britain’s FTSE 100 declined 0.3% to 8,473.33.
US Futures Take a Hit
Meanwhile, US futures took a hit, with the S&P 500 sinking 1.6% and the Dow Jones Industrial Average declining 0.9%. This comes after US stocks pulled back from their all-time high on Friday, closing out a second straight winning week.
Chinese AI Startup Boosts Hong Kong Market
However, updates on Chinese artificial intelligence startup DeepSeek pushed shares in Hong Kong higher. The open version of the AI reasoning-based model appears to require far less investment than other AI models, causing investors to sell technology shares in the US and Japan and buy Chinese tech companies. Hong Kong’s Hang Seng gained 0.7% to 20,197.77, with shares in e-commerce giant Alibaba gaining 2.9% and search engine company Baidu jumping 4.9%.
Chinese Manufacturing Slows Down
Despite the boost from DeepSeek, the Shanghai Composite index fell 0.1% to 3,250.60 after a survey of manufacturers showed export orders in China dropping to a five-month low. The official manufacturing purchasing managers index fell to 49.1 in January from 50.1 in December, slipping into contractionary territory.
Tokyo’s Nikkei 225 Takes a Hit
Tokyo’s Nikkei 225 gave up 0.9% to 39,565.80, extending losses after the Bank of Japan raised its benchmark interest rate to 0.25%, its highest level since 2008. Computer chip-related shares saw big declines, with Tokyo Electron down 4.9% and test equipment maker Advantest sinking 8.6%.
Currency Markets See Little Movement
In currency markets, the US dollar was steady against the Japanese yen, at 155.45 yen, down from 155.72. The euro slipped to $1.0477 from $1.0483.
US Economy Shows Mixed Signals
Back in the US, a mixed bag of economic data was released on Friday. While consumer sentiment was weaker than expected, sales of previously occupied homes were slightly stronger last month than expected. Traders don’t expect the weak data to push the Federal Reserve to cut its main interest rate at its meeting next week.
Oil Prices Slip
In commodities, US benchmark crude oil shed 25 cents to $74.41 per barrel, while Brent crude, the international standard, lost 29 cents to $77.26.
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