International markets seem to want to take a cautious breath after the wave of sell-offs in artificial intelligence-related stocks triggered by China's DeepSeek, with a recovery on Wall Street overnight which was reflected in those few markets Asian that are not closed for the holidays New Year lunar. Investors are warming to the idea that the startup's affordable AI assistant won't ruin the valuations of Nvidia and the like, as they prepare to evaluate the parade of profits which begins today of the so-called tech megacaps “Mag 7”. Today the data of the owner of Facebook are on the agenda, Meta Platforms, of Microsoft and Tesla, while Apple tomorrow. Not only that. There are the political decisions of some to consider central banks, including the Fed today and the ECB tomorrow. In the background remain concerns for the duties that Trump will want to impose starting from Saturday. Operators have returned to investing in the dollar, abandoning safe haven currencies, while the Treasury yields at 10 years they remained almost unchanged
Wall Street sees tech recover. Nvidia up 9%
On Wall Street yesterday the stocks technological have regained ground, a day after a low-cost Chinese artificial intelligence model of DeepSeek has shaken the markets, pushing up the main stock indexes, with the Nasdaq rose about 2% and the chip giant Nvidia up 9%. The S&P 500 gained about 0,9% and the Dow Jones Industrial Average rose 0,3%. Nasdaq shares had tumbled on Monday, and Nvidia had fallen 17%, losing nearly $600 billion of its value in the biggest one-day market cap loss in history. “The initial response from the market was ‘sell first, figure it out later,’” he told Reuters Stuart Dunbar, a partner at investment firm Baillie Gifford. “Short-term news flow and price swings don’t invalidate the potentially profound impact AI will have on the world. The advent of a much cheaper light bulb hasn’t been bad news for light bulb manufacturers or energy companies.”
Investors' reappraisal of developments in artificial intelligence will also increase investor interest in this week's earnings from Microsoft, Tesla, and Meta. Expect managers to be asked whether they intend to continue spending so much on computing power. Of note yesterday was the 1,5% rise in shares Boeing even after the planemaker posted its biggest annual loss since 2020. Instead, shares General Motors fell about 9% as investors weighed the threat of tariffs, even as the automaker posted better-than-expected results and earnings forecasts. It reported data overnight Starbucks: Revenue was roughly flat from a year ago at $9,4 billion, but better than expected. The stock rose 5% in the after market.
Dollar Slightly Recovers. Keep an Eye on Central Banks Today and Tomorrow
Operators have returned to investing in dollar, abandoning safe-haven currencies. The dollar has been on a yo-yo string since Trump took office, reacting primarily to shifting expectations on tariffs. Thedollar index has risen about 0,4% so far this week, but is still down 2% from the two-year peak reached on Jan. 13. The euro fell about 0,6%, while safe-haven currencies, which had appreciated on Monday, gave back their gains. The dollar gained 0,6% on yen Japanese and 0,2% on Swiss franc. The US Treasury securities, which rallied on Monday as part of a risk-off strategy, remained almost flat unchanged, with the benchmark 10-year yield last trading at 4,538%.
Traders expect the Fed, at 20.00:XNUMX CET today, to maintain its monetary policy stance today, even as Trump calls for lower rates. In contrast, the ECB is expected to cut rates tomorrow, followed by rapid cuts in March, June and possibly October. Also today, the riksbank, the National Bank of Sweden, is expected to cut rates by a quarter of a point, as is expected to do Bank of CanadaThe Bank of England will not announce a monetary policy update until February 6, but Governor Andrew Bailey will give evidence on the financial stability report in testimony before a parliamentary committee.
Watch Out for Trump's Tariffs: Canada and Mexico Will Be Next on Saturday. What About the Others?
Trade tensions linked to the policies of US President Donald Trump continued to dominate the debate, supporting the dollar and driving investors away from treasury bonds.
Following Trump's comments late last week that he would prefer not to impose further tariffs on Beijing following a "friendly" call with Xi Jinping, the White House reiterated that tariffs on Canada and Mexico will come into effect this saturday, while the Chinese tariffs are still being considered. Unless there are any surprises, because Trump said last week that he would impose tariffs on Mexico and Canada unless the countries help address the dual problem of fentanyl trafficking into the United States and immigration. Europe is also in the crosshairs of Trump's tariffs, so Saturday's announcement could also bring bad news for the Union.
Asia: In the silence of the Chinese holiday, the Nikkei rises +1%
While Chinese markets are closed for the Lunar New Year holiday (ending on Tuesday next week), the Nikkei Japan's index rose by +1% to 39.414,78 points, from -0,9% yesterday, breaking a three-day losing streak. In particular in Tokyo, technology stocks recover, after the heavy blow dealt by DeepSeek. Advanced + 4% Tokyo electron + 2%. Sony rises by +4%, after the appointment of Hiroki Totoki as the new CEO, a role he will assume starting from January 29. The stock benchmark AustralianThe ASX 200 index rose 0,9%, its highest level since last December, supported by a subdued inflation read that raised the likelihood of a rate cut when the Reserve Bank meets next month.
Petroleum WTI steady at $73,72 a barrel. U.S. oil inventories due today. Gold on parity at $2.760 an ounce.
European stock exchanges
European stock markets are expected to open positive on the basis of the +0,82% of the Eurostoxx50 future.
Germany, GFK Index in February equal to -22,4 points, down from the previous -21,4 points (the forecast was -20,5 points).
ASML Holding. The Dutch company posted orders more than double analyst expectations in the fourth quarter, as the artificial intelligence boom drove demand for its chipmaking machines. The stock up 7% in pre-market The company booked orders of 7,09 billion euros ($7,4 billion) in the fourth quarter, it said in a statement Wednesday. That compares with the average estimate of 3,53 billion euros from analysts polled by Bloomberg. “Artificial intelligence is a clear driver,” Chief Executive Christophe Fouquet said. “We really believe that AI is creating a change in the market and we have seen that customers are benefiting very strongly from it.”
LVMH said it is seriously considering increasing its production capacity in the United States. The group has little production capacity in the United States, apart from three Louis Vuitton workshops and some Tiffany jewelry production sites. The U.S. market accounts for 25% of the company's sales.
sapphire ended last year with net sales of 993,2 million euros, down 3,1% from 1,02 billion euros achieved in 2023; at constant exchange rates the decline was 2,3%. The adjusted EBITDA margin was approximately 9,4%, up 40 basis points compared to the same quarter of 2023. In the 4th quarter, the adjusted EBITDA margin, equal to 7,5%, improved by 60 basis points compared to the same quarter of 2023.
Enel has set its sights on Cubico. According to rumors, Canadian pension funds Ontario Teachers' Pension Plan and Public Sector Pension Investment Board have started the process of selling Cubico Sustainable Investments, a London-based company active in the development of renewable projects including wind, photovoltaic and battery storage. The process managed by Bank of America and Canadian Imperial Bank of Commerce has apparently started with the first expressions of interest, attracting a series of important industrial players, including Enel, Iberdrola and Equinor, but also large investment funds such as Kkr, Macquarie and Copenhagen Infrastructure Partners.
Mediobanca. The shareholders' consultation agreement increased its share of the share capital to 11,62% from 11,40% thanks to the contribution of an additional 1,88 million shares by Finprog, the holding company of the Doris family. Yesterday, the board of directors of Mediobanca rejected the takeover bid by MPS: it is hostile and destructive of value.
De 'Longhi closed 2024 with revenues of 3,5 billion euros, up 14% on 2023, with the fourth quarter accelerating to 18%, according to the preliminary results of the group
