Global markets: Alphabet falls strongly, Yen shoots and China returns to markets

Global markets: Alphabet falls strongly, Yen shoots and China returns to markets

While volatility by tariffs is stabilized, The actions in Wall Street They fall on Wednesday, affected by the negative reaction to the results of Alphabet, uncertainty about tariffs to China and new speculation about A rate rise in Japan.

The US futures opened in red this Wednesday after the 7 % fall of Alphabet (Googl.O) in the previous session. The decline was given by concerns about the company’s cloud computing business – it is unimportant to what happened with Microsoft last week – and by the magnitude of its investment in artificial intelligence (AI), especially after the recent news about Depseek.

After Beijing announced an antimonopoly investigation against Google, Alphabet reported that it will allocate $ 75 billion to its AI development in 2024, 29 % more than what Wall Street expected, in addition to reporting income below what is planned in their business In the cloud.

Pessimism extended to the technological sector, with the actions of Advanced Micro Devices (AMD.O) falling 9 % after disappointing with its revenues from AI chips.

Japan and China in the focus

In the macroeconomic field, the Yen shot at its highest level of the year after salary data in Japan rekindle the expectations of a rates of the Bank of Japan (BOJ). Royal wages increased 0.6 % year -on -year in December, driven by winter bonuses, which reinforces the vision of the Boj that underlying inflation is close to its 2 % goal.

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Pessimism extended to the technological sector, with the actions of Advanced Micro Devices (AMD.O) falling 9 % after disappointing with its revenues from AI chips.

In China, after the Lunar New Year holiday, the markets returned with multiple factors at stake: the US announcement of a 10 % increase in Chinese import tariffs, Beijing’s possible response before 10 February and advances in AI with Deepseek. However, Shanghai and Hong Kong bags fell after the hopes of a meeting between Donald Trump and Xi Jinping fade to stop the commercial war.

Meanwhile, Trump announced that he is in no hurry to talk to XI, and the White House clarified that the call has not yet been scheduled. In addition, the US postponed for a month the imposition of tariffs on Canada and Mexico after negotiations with their leaders.

Employment and commercial tensions

In another blow to trade with China, the US postal service announced the temporary suspension of shipments from China and Hong Kong, after Trump eliminated an exemption that allowed retailers like Temu and Shein to send low value packages without tariff .

As for the US economy, the yields of the treasure bonds retreated for commercial uncertainty and the latest labor report, which showed a fall greater than expected in employment vacancies in December. This relieves the pressure on the Fed to harden its monetary policy.

The vice president of the Fed, Philip Jefferson, reaffirmed that the reduction of rates will be gradual: “We continue to reduce the level of monetary restriction as we approach a more neutral posture, but there is no hurry to change our position”. The market is almost completely discounts from two rate cuts in 2025, with the first planned around the year.

In the Geopolitical Front, Trump’s statements about a possible US intervention in Gaza caused confusion, since they contradict their previous position to reduce military presence and expenditure abroad.

Gold, Nissan and the agenda of the day

Amid uncertainty, gold reached a new record, accumulating almost 10 % gain so far this year.

In corporate news, Nikkei reported that Nissan (7201.T) will cancel fusion conversations with Honda (7267.T), which would have given rise to the third largest car manufacturer in the world. Nissan’s shares fell 4 %, while Honda rose 8 %.

Source: Ambito

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