The global stock markets stabilize after this week’s rally, while investors process the first measures of the new US President Donald Trump.
Although optimism about artificial intelligence technology shares previously gave a boost, worrying about possible trading taxes printing the sentiment. At the same time, the focus remains focused on economic data and Trumps speech during the World Economic Forum in Davos.
European markets remain flat, technology under pressure
The Stoxx Europe 600 index remained almost unchanged on Thursday after this Wednesday had come close to a historic high point. Technology shares resulted in more than 1% and thus undone the strong rise from a day earlier. Among other things, Puma SE was hit hard, with a sharp fall after disappointing quarterly results.
In the United States, the futures for the Nasdaq 100 fell by 0.5%, while the S&P 500 contracts recorded 0.2% lower. This followed on a strong rally on Wednesday, with optimism about artificial intelligence and business results the S&P 500 to the edge of a record high.
Mixed signals from the Trump administration
The markets respond to Donald Trump’s first policy plans, which bring both hope and uncertainty. His promise to increase investments in artificial intelligence gave tech companies a boost, while his threat to introducing commercial duties on European and Chinese goods temperes sentiment. So far, Trump has not taken any concrete measures, but the uncertainty remains great.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, warns of short -term volatility. “If the proposed taxes become reality, regions that depend on it can be hit hard,” said Haefele. “Yet we believe that the US stock market can continue to grow thanks to continuing economic strength.”
Asian markets and focus on Davos
In Asia, the stock markets made profit, partly thanks to reassuring signals from Chinese policy makers who reconfected to the economy. The MSCI Asia Pacific index recorded profit for the fourth consecutive day, with an increase of 1.8% in the Chinese CSI 300 index before profits were partly handed in.
In the meantime, attention remains focused on Trumps speech during the World Economic Forum in Davos and on important quarterly figures from companies such as General Electric and Texas Instruments. New unemployment requests in the US also remain an important focus point.
Rest on bond market
The interest on 10-year-old US government bonds remained stable at 4.62%, while the dollar turned little changed in the currency market. Investors seem to be expectant and keep a close eye on Trump’s policy plans, especially with a view to potential trade measures and their impact on the global economy.
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Source: https://newsbit.nl/beurzen-blijven-hangen-trump-geeft-gemengde-signalen-over-handel-en-technologie/
