Stock Futures Rise as AI Hopes Offset Tariff Risks: Markets Wrap
Jan 22, 2025 - financialpost.com
Equity futures in Europe and the US are showing gains as optimism around increased artificial intelligence spending under Donald Trump offsets concerns about potential tariffs. Contracts for the Euro Stoxx 50 and S&P 500 have risen, following a rally in Asian tech shares due to Trump's AI investment plans. However, Chinese shares have declined after Trump mentioned a possible 10% tariff on all Chinese goods. The US dollar has strengthened against major currencies, while Chinese yuan has weakened. SoftBank Group's shares surged after being named in a new AI joint venture, boosting sentiment for tech stocks, although Chinese and Hong Kong tech stocks lagged behind.
In other market movements, the S&P 500 futures rose, while Hong Kong's Hang Seng and the Shanghai Composite fell. The Bloomberg Dollar Spot Index increased, with the euro, Japanese yen, and British pound all declining against the dollar. Bitcoin and Ether saw declines in the cryptocurrency market. In commodities, West Texas Intermediate crude oil prices fell, while gold remained stable. Key events to watch this week include the US Conference Board leading index, Samsung's product launch, and the Bank of Japan's policy meeting.
Key takeaways:
Equity futures in Europe and the US are rising due to optimism over increased artificial intelligence spending under Donald Trump.
Chinese shares fell following Trump's consideration of a 10% tariff on all goods from China.
The US dollar strengthened against all Group-of-10 currencies, with the Chinese yuan among the worst performers in Asia.
SoftBank Group's shares surged over 10% after being named a participant in Trump's 'Stargate' AI joint venture.
