Asian actions started the week with a positive tendency, although liquidity was reduced by the holiday in the US markets. Hong Kong again led the profits with an advance of 1.4%, adding to the jump of 7% of last week, driven by optimism about the adoption of artificial intelligence of Low cost after the presentation of Deepseek.
Goldman Sachs raised his growth and actions forecasts in China, arguing that the widespread adoption of AI could increase profits per share in 2.5% annually during the next decade. This would also raise the fair value of the Chinese Variable Income between 15% and 20%, attracting investment flows for US $ 200,000 million.
The impulse has been led by a 24% rebound in Alibaba (9988.hk) After the news of his association with Apple (AAPL.O) to support the artificial intelligence services of the iPhone in China. Alibaba will publish its results on Thursday, and market options suggest that the action could move 7.5% in any direction after the report.
Actions in Europe
European actions reach record levels on Monday, led by defense actions, while the main political leaders of the region requested an emergency summit about the war in Ukraine in the middle of the growing called of the United States. UU. To increase military spending in Safety sake.
The PAN-Europeo Stoxx 600 (.stoxx) index rises to 0.4%, while the index of defense and aerospace actions (.xxparo) increased more than 3%, reaching historical maximums, after having duplicated its Value since Russia invaded Ukraine three years ago.
Investors hope that earnings in the industry will continue to increase strongly, driven by a significant increase in defense budgets to meet new security needs, what analysts have called a “supercycle” for the sector. “A resolution of the conflict in Ukraine could generate positive growth impulses for Europe, including greater consumer confidence, lower energy prices and easier financial conditions,” said Bruno Schneller, general director of Erlen Capital Management. Banks (.sx7p) were also on demand, rising 1.5% and reaching maximum 17 years, helped by the increase in bond yields.
In Japan, Nikkei has shown more moderate performance due to the strengthening of YEN, which counteracted the impact of solid economic growth of 2.8% annualized in the fourth quarter. Interestingly, the market still assigns a low probability that the Bank of Japan will rise in March, probably because the meeting will be held before the main salary negotiations end. Even for May, the probability of an increase is estimated at only 25%, which seems too low considering the recent data and the most aggressive tone of the Boj.
The surprising GDP data promoted Yen up to 151.55 per dollar. The US dollar, meanwhile, has retreated from a weak retail sales report in January, which challenged the narrative of the economic “exceptionalism of the United States.
The markets have returned to bet on two federal reserve feats this year instead of one, with a probability of more than 50% of the first movement occurring in June.
The Central Banks of Australia and New Zealand will hold meetings this week and are expected that both cut rates: the first at 25 basic points and the second in twice that figure.
Geopolitics is still focusing that conversations about the Russian-Ukraine conflict will begin this week in Saudi Arabia, although it is not entirely clear who will participate.
The French president, Emmanuel Macron, will organize an emergency summit in Europe on Monday, after US officials suggest that Europe will not have a role in the resolution of the conflict, a peace process that will apparently be carried out among the US. and Russia.
Source: Ambito
