📆 Tuesday, January 28
► European markets extended the recovery as investors reassessed the AI-driven sell-off but als braced for Trump’s aggressive trade stance. The Stoxx 600 (+0.4%) edged higher, with tech and media stocks rebounding after Monday’s losses triggered by Chinese startup DeepSeek’s low-cost AI model. ASML continued to slide first but also stabilized (flat in Amsterdam) as concerns over AI-related chip demand persisted. Meanwhile SAP hovers around the flat level but recovered from earlier losses following strong cloud revenue growth (+27%), while its earnings missed estimates. France’s consumer confidence rose to 92, while Spain’s unemployment rate fell to 10.61%, supporting optimism about Europe’s economic resilience. Traders are now focusing on upcoming earnings reports and ECB’s policy decision (as well as Fed) later this week.
► US stock futures steadied after Monday’s tech-driven rout, with Nasdaq futures (+0.25%) and S&P 500 futures (+0.25%). Trump doubled down on tariffs targeting semiconductors, pharmaceuticals, and metals. The DXY (USD index) climbed 0.6%, with 10-year Treasury yields rising to 4.565% (+4 bps) amid concerns that widespread tariffs could fuel inflation. Nvidia (-17%) suffered its largest-ever market cap loss on Monday, wiping out $589 billion on fears that DeepSeek’s AI breakthrough could challenge US dominance. Microsoft and Apple report earnings this week, which will be critical for market sentiment. Investors also await the Federal Reserve’s policy decision on Wednesday, with rates expected to remain unchanged.
► Asian markets were mixed as traders weighed AI competition fears and Trump’s looming tariffs. The Nikkei 225 (-1.4%), led by losses in Japan’s major tech firms following the surprising DeepSeek innovation. The yen weakened below 155.6/USD, reflecting cautious sentiment ahead of key US economic data. China’s markets remained closed for the Lunar New Year holiday, but the offshore CNY weakened to 7.28/USD on concerns over Trump’s trade escalation. Hong Kong's Hang Seng (+0.14%) rose slightly, with Vanke, China's largest real estate company, recovering after the government promised to support construction companies.
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