Equities: Tech-led records and cautious exuberance – BNY

FXStreet Insights Team FXStreet

BNY’s Head of Markets Macro Strategy Bob Savage notes that global equities, led by US technology stocks, have climbed to fresh records, with the MSCI All Country World Index and Asian markets hitting all-time highs. Savage highlights stabilization after recent volatility, with attention turning to upcoming US data and AI investment.

Tech rebound drives fresh equity records

"Global equities have climbed to fresh records, as a rebound in US technology stocks gathered momentum, easing recent pressure linked to concerns over heavy AI spending. The MSCI All Country World Index rose to an all-time high, with Asian equities also setting a record, led by technology names including SoftBank."

"U.S. and European equity futures dipped slightly after the S&P 500 closed near a peak. In currency markets, the yuan strengthened to its highest level since May 2023 after reports that Chinese authorities had asked banks to curb U.S. Treasury holdings, while the dollar was little changed."

"Markets showed signs of stabilization after recent volatility, with attention shifting to upcoming U.S. data and the scale of corporate AI investment. MSCI World 1.069% to 1053.97, DXY +0.104% to 96.916, BBG Global Aggregate 0bp to 3.516%."

"The focus on economic data ahead has not slowed the recovery rally in technology shares. Yesterday’s Alphabet bond issuance explains some of the AI recovery, with Taiwanese chipmaker TSMC’s 37% revenue jump in January responsible for the rest."

"APAC extended its equity gains, while the EU has stalled and U.S. futures are modestly bid. The role of geopolitical forces in slowing momentum will be tested, as the Munich Security Conference starts this Friday, focusing on Greenland, Russia/Ukraine and more."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.