Equities Rebound Following Last Week’s Sell-Off: Stocks began the week on firmer ground as investors bought into last week’s US equity sell-off. S&P 500 and Nasdaq 100 futures have recovered around 1.5% and 3%, respectively, from last week’s lows. Although uncertainty over tighter regulation remains, investors are reassessing the outlook for AI and data centres amid expectations that Democratic politicians may soften the hardline rhetoric heard during the election campaign.
Taiwan Stocks Surge as Regulator Steps In: Taiwan’s TAIEX gained as much as 6.7%, ending a seven-session losing streak, while Japan’s Nikkei 225 climbed 2.3%. The KOSPI and Hang Seng were broadly unchanged. Taiwan’s regulator introduced short-selling restrictions today and prepared to deploy its NT$500 billion ($15.2 billion) stock stabilisation fund to support market confidence.
Nvidia Investigates Potential Intelligence Targeting: Nvidia added to market uncertainty after announcing an investigation into whether Chief Executive Jensen Huang had been targeted by foreign intelligence. Huang acknowledged an affair with a woman reportedly suspected of working for Chinese intelligence. Nvidia said it had no reason to believe that company secrets or national security had been compromised.
Oil Extends Decline as Iran Talks Continue: Brent crude fell 1.8% to $96.56 a barrel, extending last week’s decline after President Trump said renewed attacks on Iran were unlikely while negotiations continued. However, further attacks on shipping near the Strait of Hormuz limited optimism, with no comprehensive agreement yet reached.
Gold Rises as Inflation Concerns Ease: Gold gained 1.8% to around $4,100 an ounce, supported by a softer dollar and lower oil prices. Falling energy prices eased concerns that persistent inflation would require further interest-rate increases. US government bonds were little changed, while Bitcoin traded broadly flat at $74,144.
Strong Payrolls Lift December Rate-Hike Expectations: Friday’s US employment report showed that 165,000 jobs were added in October, well above expectations of 65,000, while unemployment fell to 4.1%. The stronger figures give the Federal Reserve more room to focus on inflation. The probability of a quarter-point rate increase in December rose from around 70% before the release to 77% this morning.
ECB Succession in Focus: Eurozone finance ministers meet today to discuss Christine Lagarde’s successor as ECB president. Former Dutch central bank chief Klaas Knot and former Spanish central bank chief Pablo Hernández de Cos are competing for the role, with Lagarde due to step down on 7 February.
Economic Calendar
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Eurozone Finance Ministers’ Meeting
Key Market Moves Today
- S&P 500 Futures: -0.15% (7,391)
- Crude Oil: -1.10% ($89.85)
- Spot Gold: +0.55% ($4,092)
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