ASIA/PACIFIC
Asian markets closed mixed on Wednesday as concerns over inflation and trade tensions offset optimism surrounding China’s AI sector. The Shanghai Composite Index gained 1% as Morgan Stanley raised its price targets for major Chinese banks, citing stabilizing credit risks. Hong Kong’s Hang Seng Index surged 3.63% in its final hour of trading, boosted by the city’s pledge to establish itself as an AI hub. Meanwhile, Japanese markets declined for a second consecutive session, while Australia’s ASX 200 ended in negative territory, weighed down by disappointing corporate earnings and losses in the mining sector.
EUROPE
European markets rallied, with major indices posting solid gains as investors welcomed a fresh round of corporate earnings. Fresenius, Munich Re, and Wienerberger were among the top performers, exceeding expectations. The pan-European Stoxx 600 Index closed 0.99% higher, with nearly all sectors and major bourses in positive territory. Additionally, the European Commission approved Nokia Corp.’s $2.3 billion acquisition of Infinera Corp., a deal first announced in June.
AMERICAS
U.S. stocks experienced a mixed close, with initial buying interest fading as traders became increasingly wary ahead of Nvidia’s Q4 earnings release. The AI giant, considered a crucial market indicator, saw its stock price climb 3.7% before its after-hours report, highlighting the market’s anticipation of its potential impact. Beyond earnings, investor sentiment was also influenced by President Trump’s statements regarding trade. He announced a forthcoming 25% tariff on EU imports and extended the deadline for potential tariffs on imports from Mexico and Canada to April 2nd, providing a temporary reprieve.
AFRICA
Concerns over global trade tensions and a potential value-added tax (VAT) hike in South Africa could disrupt two years of slowing inflation, warned South African Reserve Bank Governor Lesetja Kganyago. Speaking at a G20 finance meeting in Cape Town, Kganyago noted that retaliatory tariffs and tightening global financing conditions could weigh on South Africa’s exports and broader economic stability.
MIDDLE EAST
Saudi Arabia’s stock market declined, pressured by lackluster corporate earnings. In contrast, Dubai’s index gained after Emirates NBD, the city’s top lender, made a mandatory cash offer to acquire Emirates Islamic Bank at 11.95 dirhams ($3.25) per share. Abu Dhabi’s index rose 0.3%, while Kuwait’s bourse remained closed for a public holiday. At the Investopia 2025 conference in the UAE, Egyptian billionaire Naguib Sawiris suggested that a merger between Dubai and Abu Dhabi’s stock exchanges could attract larger listings and enhance market liquidity.
COMMODITIES
GOLD
Gold: Spot gold fell 0.2% to $2,910.13 per ounce, while U.S. gold futures edged up 0.2% to $2,925.40, as investors awaited U.S. PCE inflation data.
OIL
Brent crude dropped 0.42% to $72.71 per barrel (11 a.m. EST / 1600 GMT), while West Texas Intermediate (WTI) crude declined 0.29% to $68.73, weighed down by rising U.S. fuel inventories and ongoing Russia-Ukraine negotiations.
