Public Markets 8-Hour Briefing
×Global Market Reactions
US futures edged up while European equities fell as new tariffs kicked in. Trump's global tariffs took effect at 10% after the Supreme Court struck down his original sweeping levies. The Nasdaq led tentative premarket gains after renewed speculation about how AI might shape the future. European stocks slipped amid uncertain trade landscape with earnings still in focus. The dollar edged higher amid trade uncertainty while the euro remained stable. Bitcoin slipped below $63k, wiping out 50% from its October record high.
AI Disruption Impact
Asset-heavy stocks are outperforming on AI fears according to Goldman, while old-economy stocks are looking attractive as investors flee AI disruption. European banks told the ECB they're set to benefit from AI shakeups in their business models. HSBC says software is already eating AI, while Citrini's doomsday scenario faces a counterview from Wolfe Research. Software investors have been ditching stocks on fears of disruption from artificial intelligence, with upcoming earnings not expected to settle nerves.
Corporate Earnings & Outlook
Home Depot reported lower fourth-quarter profit as home improvement downturn continues, though comparable sales growth topped estimates. Fresenius Medical Care shares fell 7.1% after the dialysis specialist issued a flat growth outlook and cost update. Singapore Airlines posted record revenue with operating profit climbing 26% on booming travel demand and predicts sustained growth. Amer Sports dropped after issuing a tepid first-quarter outlook that raised concerns on higher costs for its Salomon footwear and Arc'teryx apparel brands.
Trade & Currency Developments
The US is likely to issue more short-dated notes to make up for lost tariff revenues after the Supreme Court overturned President Trump's tariffs. China is becoming more attractive as investment inflows rise according to Deutsche Bank's global CIO for private banking. Russia is changing its oil supply chain to cope with growing shipments to China, shifting to larger tankers for longer voyages. Yen extended declines after Japanese Prime Minister Takaichi reportedly voiced caution over further rate hikes.