ASIA/PACIFIC
The Australian stock market finished slightly lower on Tuesday but defied the overnight tech meltdown on Wall Street, driven by concerns over the impact of the rapidly growing Chinese AI startup DeepSeek on sector earnings. Asian stocks also ended mostly lower in thin trade, with markets in China, South Korea, Taiwan, and Indonesia closed for the Lunar New Year holidays. Japan’s chip-related stocks extended losses for a second day, while Hong Kong’s Hang Seng Index bucked the regional trend, ending the day higher. On the bond and forex front, the Reserve Bank of India announced plans to pump more than $17 billion into the financial ecosystem through measures including bond purchases and currency swaps.
EUROPE
Major European stock markets closed mostly higher. JPMorgan analysts identified opportunities in the semiconductor sector, highlighting potential bargains among European semi-cap equipment companies following DeepSeek’s AI model release. Pan-European stock exchange Euronext announced plans to acquire Nasdaq’s Nordic power futures business, pending regulatory approvals. Meanwhile, banking giant HSBC plans to exit M&A and capital markets businesses in the UK, Europe, and the U.S., as revealed in a staff memo. ING also exited the Russian market, selling its operations to Global Development. The European Central Bank’s (ECB) latest bank lending survey revealed a net tightening of credit standards for businesses across the euro area in the fourth quarter of 2024, signaling potential challenges for corporate borrowing.
AMERICAS
Major indices on Wall Street traded in the green at the closing bell as investors turned away from the upheaval caused by DeepSeek. The Federal Reserve began its two-day policy meeting, with Fed funds futures pricing a 97% probability of no interest rate changes, according to CME Group’s FedWatch Tool. Recent economic data has led to concerns about the Fed leaving rates on hold for a prolonged period, but many economists still expect the central bank to resume cutting rates sometime in the first half of the year. In Mexico, the finance ministry raised €2.4 billion ($2.52 billion) in a two-part euro-denominated bond sale on Monday, marking the country’s second international market tap this month.
AFRICA
The Central Bank of Nigeria (CBN) approved a 2025 license renewal fee waiver for Bureau De Change operators, effective immediately. In Egypt, the central bank reported a steady increase in customer deposits, which reached EGP 12.89 trillion in September 2024, up from EGP 12.53 trillion in August. Government deposits accounted for EGP 2.83 trillion, with EGP 2.33 trillion in local currency and EGP 504.46 billion in foreign currencies. Meanwhile, Ghana’s central bank maintained its main interest rate at the current level during Monday’s policy meeting.
MIDDLE EAST
Most Gulf stock markets ended mixed with the Saudi index rising on the back of property and telecom shares. Brokerage Al Ramz Capital referred a $25,000 fine for failing to report suspicious transactions on Nasdaq Dubai to the Financial Markets Tribunal (FMT). On the bond front, Al Rajhi Capital is set to launch a new Islamic bond offering after securing approval from the Saudi market regulator on Monday.
. COMMODITIES
GOLD
Spot gold remained steady at $2,738.90 per ounce as of 0230 GMT, while U.S. gold futures rose 0.2% to $2,743.10, according to Reuters.
SILVER
Spot silver fell 0.4% to $30.07 per ounce, palladium dropped 0.4% to $957, and platinum fell 0.4% to $943.35.
OIL
Brent crude oil futures rose by 12 cents, or 0.2%, to $77.20 per barrel by 0220 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 10 cents, or 0.1%, to $73.27 per barrel.