Markets steady as geopolitics and inflation take center stage 🌍📊
Asian equities edged higher in thin Lunar New Year trading, tracking modest gains on Wall Street. However, AI-driven tech valuations remain under scrutiny, keeping broader risk appetite in check.
🇯🇵 Japan outperformed, with the Nikkei up over 1% on expectations local tech firms will benefit from fresh U.S. investment projects.
🕊️ In Geneva, diplomatic progress helped ease tensions. Iran and the U.S. reportedly agreed on “guiding principles” for nuclear talks, while Russia-Ukraine negotiations continue under U.S. mediation — a mild positive for global sentiment.
💱 The NZD slid nearly 0.9% after the Reserve Bank of New Zealand kept rates unchanged and signaled room to stay accommodative as inflation cools.
📉 Inflation remains the key macro driver:
UK CPI expected to slow to 3% YoY
France inflation data due
Fed January minutes ahead
U.S. housing, durable goods & industrial production on deck
Futures snapshot:
🇪🇺 Euro Stoxx 50 +0.07%
🇩🇪 DAX +0.06%
🇬🇧 FTSE +0.14%
🇺🇸 S&P 500 futures +0.06%
With geopolitical risks easing slightly and inflation data ahead, volatility could return quickly. Stay nimble. 🚀