Key takeaways
- Asian indices mixed, declines on Chinese stock exchanges;
- US and European index futures fall ahead of opening;
- RBA keeps rates unchanged, Bullock does not rule out further cuts;
- Japan's finance minister expresses concern about strong yen movements;
- China subsidizes energy for AI, supporting the chip sector;
- USD remains strong against major currencies;
- Gold falls slightly in the morning;
- Oil below 50-day EMA;
- Bitcoin below $105,000, cryptocurrencies under pressure.
Key takeaways
- Asian indices mixed, declines on Chinese stock exchanges;
- US and European index futures fall ahead of opening;
- RBA keeps rates unchanged, Bullock does not rule out further cuts;
- Japan's finance minister expresses concern about strong yen movements;
- China subsidizes energy for AI, supporting the chip sector;
- USD remains strong against major currencies;
- Gold falls slightly in the morning;
- Oil below 50-day EMA;
- Bitcoin below $105,000, cryptocurrencies under pressure.
- Asian indices are mixed ahead of the European session: the Nikkei 225 is down 0.36%, the Hang Seng is up 0.25%, and the Shanghai Composite is down 0.19%. Problems in the AI sector and slowing growth in China are affecting investor sentiment.
- Futures contracts on US and European indices are down ahead of the European open, with the S&P 500 down 0.9% and Nasdaq futures down 1.2%. Sentiment is negative after the previous day's rapid rise, with investors expecting a more cautious session.
- Palantir exceeded analysts' expectations in the third quarter of 2025, achieving revenues of $1.18 billion, an increase of 63% year-on-year, and net profit rose to $476 million. The company raised its fourth-quarter forecast, indicating that strong demand for its AI platform is driving further growth, with sales to the government sector, which is key to Palantir's growth, up 52%. Company's shares dipped hoverer by more than 4% after market, what can imply that better than expected numbers were previously priced in.
- The Reserve Bank of Australia (RBA) left interest rates unchanged at 3.6%, as expected. Governor Michele Bullock indicated that there may be no further rate cuts and that inflation will remain above target until the second half of 2026. The tone of Bullock's remarks and the commentary following the bank's decision appear cautiously hawkish, causing a slight weakening of the AUD.
- Japanese Finance Minister Satsuki Katayama warned against “unilateral” and violent movements of the yen, pointing to the need to monitor the currency market with great vigilance. The yen weakened to its lowest level since mid-February, but the government's response may halt further declines. Katayama spoke of “unilateral sharp movements” in the yen.
- China has announced energy subsidies for major AI processing data centers such as ByteDance, Alibaba, and Tencent, cutting their energy bills in half. This is part of a strategy to support the domestic AI chip industry in response to restrictions on US chip imports.
- In the currency market, the USD remains strong, with the DXY index at around 99.7, close to a three-month high. The Japanese yen is currently performing best. At the same time, we are seeing the biggest declines in Antipodean currencies.
- Gold is down 0.65% to around $3,975 per troy ounce, despite a long-term upward trend.
- Brent crude oil is down slightly by about 0.30% to $64.71 per barrel and remains below the 50-day EMA, which may indicate a continuing downward trend for the instrument.
- Cryptocurrencies are among the worst-performing assets, with bitcoin falling below the key $105,000 level after an intense sell-off in the market following a hacker attack on the DeFi Balancer platform. Ether lost nearly 9% in a short period of time, adding to market uncertainty.
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