Equities: Tech-led records and cautious exuberance – BNY

BNY’s Head of Markets Macro Strategy Bob Savage notes that global equities, led by US technology stocks, have climbed to fresh records, with the MSCI All Country World Index and Asian markets hitting all-time highs. Savage highlights stabilization after recent volatility, with attention turning to upcoming US data and AI investment.

Tech rebound drives fresh equity records

"Global equities have climbed to fresh records, as a rebound in US technology stocks gathered momentum, easing recent pressure linked to concerns over heavy AI spending. The MSCI All Country World Index rose to an all-time high, with Asian equities also setting a record, led by technology names including SoftBank."

"U.S. and European equity futures dipped slightly after the S&P 500 closed near a peak. In currency markets, the yuan strengthened to its highest level since May 2023 after reports that Chinese authorities had asked banks to curb U.S. Treasury holdings, while the dollar was little changed."

"Markets showed signs of stabilization after recent volatility, with attention shifting to upcoming U.S. data and the scale of corporate AI investment. MSCI World 1.069% to 1053.97, DXY +0.104% to 96.916, BBG Global Aggregate 0bp to 3.516%."

"The focus on economic data ahead has not slowed the recovery rally in technology shares. Yesterday’s Alphabet bond issuance explains some of the AI recovery, with Taiwanese chipmaker TSMC’s 37% revenue jump in January responsible for the rest."

"APAC extended its equity gains, while the EU has stalled and U.S. futures are modestly bid. The role of geopolitical forces in slowing momentum will be tested, as the Munich Security Conference starts this Friday, focusing on Greenland, Russia/Ukraine and more."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)