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Global markets are digesting mixed US inflation data showing core CPI rising 2.6% annually, below expectations but insufficient to prompt near-term Fed rate cuts. Political tensions escalate as Trump attacks Fed Chair Powell amid an ongoing DOJ probe, while global central banks rally in Powell’s defense, reinforcing Fed independence concerns. Geopolitical risks rise with US interventions in Venezuela and Iran, alongside Greenland-Denmark-US diplomatic friction, supporting safe-haven demand and commodity price volatility.
Key News Summary: The US dollar shows vulnerability amid political pressure on the Fed and subdued inflation data; geopolitical tensions boost safe-haven flows into JPY and CHF. The Philippine peso remains weak due to local economic challenges.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Bearish USD bias; bullish JPY/CHF safe-havens |
| Market Impact | USD pressured by political uncertainty around Powell and moderate inflation; JPY/CHF supported by risk aversion; emerging market FX underperforming (e.g., PHP) |
| Core Logic | Political attacks on Fed chair undermine confidence in US policy stability; subdued inflation delays rate cuts but keeps tightening bias; geopolitical risks drive safe-haven FX demand |
Key News Summary: US equities show mixed performance with JPMorgan earnings beating expectations but dragging financials lower; tech stocks like Intel, AMD rally on AI-driven demand upgrades. European shares remain mixed amid geopolitical concerns over Greenland and Venezuela.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Mixed overall; bullish tech sector, bearish financials |
| Market Impact | Tech sector gains driven by AI optimism (Intel +6%, AMD +5.6%); financials weighed down by JPMorgan losses; geopolitical jitters cap European gains |
| Core Logic | AI demand supports semiconductor stocks; bank sector under pressure from regulatory uncertainty and credit card rate cap risks; geopolitical instability tempers broad equity appetite |
Key News Summary: US December core CPI rose 2.6% YoY, below forecasts but still firm enough to keep Fed on hold; central bankers worldwide publicly support Fed Chair Powell amid political probes. New home sales steady at near two-year highs in the US.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Neutral-to-bearish for easing bets on US rates |
| Market Impact | Inflation data tempers rate cut expectations this month; central bank solidarity supports policy continuity; housing market steady supports underlying economy resilience |
| Core Logic | Inflation moderation insufficient for immediate easing; political risks add uncertainty but central banks emphasize independence to maintain credibility |
Key News Summary: Oil prices hit two-month highs following US intervention moves in Venezuela and threats of tariffs on Iran’s trading partners; gold benefits from increased geopolitical risk premium. Renewable energy stocks gain after US judge allows Orsted wind project resumption.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Bullish oil and gold; bullish renewables (Orsted) |
| Market Impact | Oil supply concerns from Venezuelan disruption and Iran tariffs push prices higher; gold rises as a safe haven amid global tensions; renewable energy sentiment improves with regulatory clarity for wind projects |
| Core Logic | Geopolitical conflicts tighten supply outlook for oil, supporting prices; risk aversion drives gold demand; legal wins reduce renewable project uncertainties boosting related equities |
Important News Summary: Trump’s aggressive stance on Venezuela following Maduro’s capture sparks hopes of regime change but raises regional instability risks; Greenland’s PM rejects US acquisition overtures favoring Denmark ties; Iran faces intensifying protests with regime described as nearing collapse by German officials. Global central banks unite to defend Fed Chair Powell against DOJ probe pressures.
| Analysis Items | Analysis Content |
|---|---|
| Bullish/Bearish | Bearish for regional stability, supportive for safe havens and defense sectors |
| Market Impact | Heightened geopolitical risk fuels flight to safety assets (gold, JPY); defense-related equities may benefit from “mega-trend” spending increases in Europe due to security concerns; diplomatic friction limits USD strength potential from Greenland episode |
| Core Logic | Political instability in Middle East and Latin America elevates risk premiums globally; defense spending seen rising amid security fears; institutional support for Fed independence counters political interference |
Disclaimer: This report is solely for information aggregation and market analysis and does not constitute any specific investment advice.