Early year worries that the AI rally would fizzle out were rapidly wiped out at the start of this week by several news, including Microsoft’s announcement to be willing to spend $80bn on data centers – which pushed the stock up to 1.4% yesterday and Foxconn’s announcement of a 42% surge in its December sales thanks to AI-driven demand. But mood beyond tech was murkier.
The Dow Jones for example was slightly lower on Monday, as US yields spiked. The US dollar couldn’t benefit from higher yields as Washington Post reported that Trump’s policies wouldn’t be as harsh as promised. But Trump rapidly denied the news and the dollar rebounded. The USDCAD sharply fell on Trudeau’s resignation – and probably on the back of a rally in US crude, the EURUSD – which tanked to 1.0224 in the early hours of the new year - rebounded past the 1.04 level,...
