
Markets Update: Tech stocks surge as Trump announces AI investment. Netflix shares soar 14% post-earnings. Asian markets mostly up; China and Hong Kong lag. Dollar hovers near two-week low amid tariff uncertainties.
Global Markets Roundup: 22 January 2025
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
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Global stock markets experienced an uptick on Wednesday as newly announced U.S. policies, coupled with strong corporate earnings, buoyed investor sentiment. Nevertheless, the dollar remained near a two-week low due to ongoing tariff uncertainties. Shares of Netflix surged by 14% in after-hours trading, following a record increase in subscribers last quarter, which enabled the company to raise prices for most service plans internationally. This positive development contributed to a 0.7% rise in Nasdaq futures during Asian trading hours, with S&P 500 futures also gaining 0.3%. European markets were also poised for a higher open, with STOXX 50 futures up by 0.2%. Late on Tuesday, President Trump announced a significant investment in artificial intelligence infrastructure, forming a joint venture named Stargate with OpenAI, SoftBank, and Oracle, amounting to an investment of up to $500 billion. This announcement led to a notable 11% increase in SoftBank shares in Tokyo, while Oracle shares had already risen by 7% overnight.
The market's positive outlook was further supported by the relief that Trump did not introduce a broad suite of tariffs at the commencement of his second term. While he reiterated threats of new tariffs, specifically targeting the European Union and considering a 10% tariff on Chinese goods starting February 1st, investors seemed to price out extreme scenarios.
In Asia, Japan's Nikkei index increased by 1.6%, mirroring gains on Wall Street. However, the MSCI's broadest index of Asia-Pacific shares outside Japan recorded a slight decline of 0.1%, as losses in China and Hong Kong offset broader regional gains. Specifically, Chinese blue-chip stocks fell by 1%, and the Hang Seng index in Hong Kong dropped by 1.6%. While the temporary relief from tariffs supported a decrease in Treasury yields, the U.S. 10-year Treasury yield rose marginally by 1 basis point to 4.5866% in Asian trading, following a 4 basis point dip overnight.
In currencies, the U.S. dollar DXYÂ showed a slight increase but remained close to a two-week low against major currencies. The EURUSDÂ eased by 0.2% to $1.0412, just below a three-week high of $1.0435, while the Japanese yen depreciated by 0.2% to 155.87 per dollar. Bitcoin maintained its near-record high at $105,694, following a 4% increase overnight after the top U.S. markets regulator established a task force to develop a regulatory framework for crypto assets. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Oil prices remained flat, with Brent crude holding steady at $79.35 per barrel and U.S. crude at $75.80 per barrel, despite Trump's plans to enhance U.S. energy production. In contrast, gold prices continued their upward trend, rising by 0.4% to reach a 2.5-month high of $2,756.19 per ounce, following a 1.4% increase overnight.
In agricultural commodities, the leading corn futures contract on the Chicago Board of Trade (CBOT) ZC1! decreased by 0.5% to $4.87-3/4 per bushel, following a 13-month peak of $4.91 achieved on Tuesday. Similarly, CBOT soybean futures ZS1! declined by 0.1% to $10.66-1/4 per bushel after attaining a 4-month high of $10.68 in the prior session. Furthermore, wheat futures ZW1! experienced a reduction of 0.4%, lowering to $5.56-3/4 per bushel, and remained near the previous year's low of $5.14. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team