Global Markets Driven by AI Rally Amid Inflationary Pressures and Trade Tensions

Key Intelligence

• ■An ongoing AI boom is fueling significant stock surges across the US and Europe, with ASML becoming Europe's most valuable stock, though some experts warn of an impending 'AI bubble' burst.
• ■Central banks in Asia and emerging markets are adopting hawkish stances and raising rates due to inflation exacerbated by oil shocks and geopolitical conflicts, while Japan and Taiwan actively manage currency stability.
• ■The US is proposing new tariffs and appealing trade court orders, highlighting persistent global trade tensions, alongside China's extended curbs on outbound investment for individuals.
• ■Market sentiment is marked by 'more greed than fear,' influencing global funds to shift investments, notably into Japan, with Goldman Sachs upgrading outlooks for some Asian markets.
• ■Key corporate activities include Paramount seeking EU approval for a $110 billion Warner deal, Raizen planning a $13 billion debt overhaul, and a $650 million IPO in the US aerospace sector.