The Ibovespa slipped 0.7% to close at 124,056 on Tuesday as markets prepared for a widely expected 100bps rate hike by the Brazilian Central Bank, while also reacting to U.S. President Donald Trump’s comments on trade. Trump criticized Brazil for imposing high tariffs on U.S. goods, reaffirming his intent to implement reciprocal measures to protect American industries. Petrobras edged lower after achieving its 2024 production target of 2.7 million barrels of oil equivalent per day, while Vale dropped 2.5% as its Q4 iron ore production fell 4.6% year-over-year to 85.28 million tonnes. Major banks and retailers further pressured the index. On the other hand, WEG attempted to recover from Monday’s tech-driven sell-off following China’s DeepSeek unveiling a competitive low-cost AI model.

Ibovespa Slips Ahead of BCB

The S&P/TSX Composite Index rose 0.5% to close at 25,420 on Tuesday as investors braced for a widely expected rate cut by the Bank of Canada and a pause in policy by the US Federal Reserve, with both decisions due tomorrow. Shopify led gains with a 9.6% rise, rebounding from Monday’s tech selloff triggered by China’s DeepSeek unveiling a low-cost AI model. Investor optimism was fueled by Shopify's projected $2.2 billion in revenue, 26% year-over-year growth, and strategic advancements. Constellation Software added 2.7%, further bolstering the index. Meanwhile, bullion-linked mining stocks gained from a continued rally in gold prices. However, energy producers traded flat to negative despite higher oil prices, as uncertainty over Trump’s trade and energy policies weighed on the US-reliant energy sector.

TSX Rises Supported by Shopify's Surge

U.S. stocks rebounded on Tuesday, led by the Nasdaq’s 1.5% surge, as technology shares recovered from Monday’s AI-driven sell-off triggered by Chinese startup DeepSeek’s announcement of a competitive AI model. Nvidia surged 8.8%, recovering part of its historic 17% single-session loss that erased $593 billion in market value. Broadcom and Oracle added 2.6% and 3.6%, respectively, amid broad tech strength. The S&P 500 climbed 0.9%, supported by its technology sector, while Appleand Microsoft advanced 3.7% and 2.9%, respectively ahead of its earnings release. Meanwhile, Royal Caribbean soared 11.9% on upbeat profit forecasts, while General Motors tumbled 8.9% due to earnings concerns and potential U.S. tariffs on imported chips, pharmaceuticals, and steel. The Dow rose 0.3%, adding to the mixed sector performance, as investors anticipated the Federal Reserve’s rate decision on Wednesday, widely expected to hold steady.

Tech Rebound Lifts Nasdaq 1.6% Ahead of Fed Decision

The DAX finished about 0.7% higher at 21,439 on Tuesday, hitting a fresh record peak, following yesterday's losses, which were triggered by concerns over the high valuations of some companies and the growth prospects of AI. Traders focused on corporate results, while awaiting the Fed's two-day policy meeting outcome on Wednesday and the ECB's decision on Thursday. Biopharmaceutical firm Sartorius was the top performer on the index, jumping 11.2% after the company said in a preliminary full-year release that it had met profitability targets and had a “cautiously positive” outlook for 2025. SAP, Europe’s largest software manufacturer also released its earnings for Q4, reporting significant revenue growth despite a sharp decline in net profits. Siemens Energy AG increased its cash flow outlook for the year after beating analysts’ revenue and profit estimates in its fiscal first quarter.

DAX Rebounds and Hits New Peak

In Frankfurt,  the DAX Index went up by 148 points or 0.70 percent on Tuesday. Top gainers were Sartorius (11.41%), Siemens Energy (7.28%) and Merck (3.25%). Biggest losses came from BMW (-2.84%), Porsche AG (-1.78%) and Daimler Truck Holding AG (-1.55%).

The DAX Index Closes 0.70% Higher

COLCAP increased to a 31-month high of 1473.00 Index Points. Over the past 4 weeks, Colombia Stock Exchange Stock Index gained 6.64%, and in the last 12 months, it increased 14.96%.

Stocks in Colombia Hit 31-month High

The FTSE MIB experienced high volatility to close marginally down at 36,147 on Tuesday, in a session marked by banking sector concerns. The board of directors of Mediobanca (-4.4%) rejected the takeover bid by state-backed rival MPS (-2.5%), citing the lack of strategic and financial rationale. The stock fell further after Citi and Deutsche Bank revised their target prices, emphasizing the uncertainties tied to the proposed deal. Other top decliners included Stmicroelectronics (-3.2%), Prysmian (-3.2%) and Saipem (-3%). On the flip side, Telecom Italia and Nexi advanced the most, rising 3.6% and 2%, respectively. Meanwhile, investors continue to monitor corporate results but shifted their focus to monetary policy updates from the Federal Reserve on Wednesday and the ECB on Thursday.

Italian Stocks End Marginally Down

European stocks closed higher on Tuesday, rebounding from the losses in the previous session as markets continued to assess the outlook on GPU and AI infrastructure demand following yesterday’s tech selloff. The Eurozone’s STOXX 50 added 0.3% to close at 5,203 and the STOXX 600 closed 0.5% higher at a record high of 532. Selected tech stocks remained in the spotlight after claims from Chinese-developed LLM DeepSeek that it attains comparable results to US counterparts with a fraction of computing power triggered a selloff for companies with exposure to speculation of higher AI infrastructure demand. ASML declined 0.8% following yesterday’s near 8% plunge, while Infineon dropped 0.9% and Schneider plunged 7.5% to mark a cumulative 16% plunge this week. In turn, SAP gained 0.5% after reporting results, and BBVA jumped 2% to set the pace for a strong session in financial stocks.

STOXX 600 Rise to Fresh Record

The CAC 40 slipped 0.1% to close at 7,897 on Tuesday, extending the prior session’s sharp selloff as pressure from DeepSeek’s launch of a low-cost AI model weighed on key equities. Meanwhile, investors turned their attention to upcoming monetary policy decisions, with the Federal Reserve set to announce its decision on Wednesday, followed by the European Central Bank on Thursday, alongside the ongoing corporate earnings season. Schneider Electric led losses, plunging 7.5% to its lowest level since September, while Stellantis fell 1.2%, and STMicroelectronics dropped 3.2%, offsetting broad based gains across luxury goods, financial services, and healthcare sectors.

CAC 40 Edges Lower on Tuesday

The FTSE 100 rose 0.2% on Tuesday, following the global tech sector’s recovery. The retail sector led with a 2.3% gain, boosted by Pets at Home Group’s 5.3% rise after reporting strong third-quarter results. Utilities also saw a 1.1% increase. The pound weakened after three days of gains, which supported British equities. Market sentiment had fallen on Monday due to concerns about a new Chinese AI model, which led investors to question the future dominance of major tech firms. Focus is now on earnings reports from key tech companies and the Fed’s interest rate decision on Wednesday, expected to remain unchanged. In stock movements, Computacenter surged 7% after reporting its most profitable second half ever.

UK Shares Join Global Rebound

The S&P/TSX Composite Index edged up 0.2% to surpass 25,320 on Tuesday as investors positioned for a widely anticipated rate cut by the Bank of Canada, while expecting the US Federal Reserve to hold rates steady, with both decisions due tomorrow. Meanwhile, e-commerce mega cap Shopify led the gains, climbing over 3% as it rebounded from yesterday’s tech selloff sparked by China's DeepSeek unveiling a low-cost AI model. Additionally, bullion-linked mining stocks lent support to the index, benefiting from the continued rally in gold prices. Conversely, energy producers traded flat to negative despite higher oil prices, as uncertainty over Trump’s trade and energy policies weighed on the US-dependent energy sector.

TSX Struggles for Direction

The three major averages in the US swung around the flatline on Tuesday, following a big sell-off the day before driven by concerns over the US's AI dominance amid rising competition from Chinese DeepSeek. Nvidia shares rose around 1%, recovering some losses after a staggering 16.9% drop on Monday that wiped nearly $600 billion off its market cap, the largest one-day loss for a US company in history. Technology and communication services were the top performing sectors while utilities and consumer discretionary underperformed. Meanwhile, earnings reports will remain in focus, with shares of Boeing jumping more than 5% as the company's earnings and revenue missed forecasts but its CEO set a recovery plan. Lockheed Martin sank about 5% after its revenue for Q4 and and FY 2025 EPS guidance disappointed. Starbucks is also scheduled to release quarterly results today. Investors are also eyeing the Fed, which begins its two-day policy meeting later today.

US Stocks Waver

The Ibovespa fell 0.3% on Tuesday, dipping below the 124,500 mark as markets braced for an anticipated 100bps rate hike by the Brazilian central bank while digesting U.S. President Donald Trump’s latest remarks on trade policy. Trump criticized Brazil for imposing high tariffs on American products, reaffirming his stance on adopting reciprocal measures to shield U.S. industries. Among individual stocks, Petrobras traded flat after meeting its 2024 production target of 2.7 million barrels of oil equivalent per day, while Vale dropped nearly 1% ahead of its Q4 2024 production report, with analysts anticipating sequential and annual declines in iron ore output. Major banks, including Banco do Brasil, Santander, Itausa, and Bradesco, shed 0.7% to 1.2%, reversing some of Monday's gains.  Conversely, WEG sought to recover from Monday’s global sell-off in technology stocks, triggered by China’s DeepSeek unveiling a low-cost AI model.

Ibovespa Retreats Ahead of Central Banks Decisions

ES35 increased to a 15-year high of 12159.00 Index Points. Over the past 4 weeks, Spain Stock Market Index (ES35) gained 5.36%, and in the last 12 months, it increased 22.9%.

Stocks in Spain Hit 15-year High

The BSE Sensex closed about 0.7% up at 75,901 on Tuesday, halting losses in the previous two sessions and moving away from their lowest level in over seven months the day before. The recovery was driven by strong buying in banking and rate-sensitive stocks after the Reserve Bank of India’s announced a slew of measures to boost liquidity into the financial system. Top gainers included Bajaj Finance, Axis Bank, Bajaj Finserv, HDFC Bank, and Tata Motors. Meanwhile, Sun Pharma, L&T, NTPC, PowerGrid, and ITC stood among the laggards for the session. Further gains were limited by concerns over persistent foreign capital outflows, alongside lackluster Q3 earnings results. Meanwhile, investors turned their attention to the upcoming Federal Reserve's decision on Wednesday.

Sensex Rebounds on Tuesday

US stock futures were higher on Tuesday, with S&P 500 futures up 0.4%, the Dow Jones gaining about 25 points, and the Nasdaq 100 rising 0.7%, as markets attempted to rebound from Monday’s sharp sell-off. The downturn was driven by concerns over the US's AI dominance amid rising competition from Chinese DeepSeek. Nvidia shares rose around 5% in premarket trading, recovering some losses after a staggering 16.9% drop on Monday that wiped nearly $600 billion off its market cap, the largest one-day loss for a US company in history. Broadcom (+3.6%) and AMD (+0.6%) also saw premarket gains. Meanwhile, earnings reports will remain in focus, with Boeing, Lockheed Martin, and Starbucks scheduled to release their quarterly results. Investors are also eyeing the Federal Reserve, which begins its two-day policy meeting later today.

US Stocks Set to Rebound

IT40 increased to a 17-year high of 36474.00 Index Points. Over the past 4 weeks, Italy Stock Market Index (IT40) gained 6.66%, and in the last 12 months, it increased 20.61%.

Stocks in Italy Hit 17-year High

In Mumbai,  the SENSEX Index rose 610 points or 0.81 percent on Tuesday. Leading the gains are Bajaj Finance (4.26%), Axis Bank (3.77%) and Bajaj Finserv (3.35%). Top losers were Sun Pharmaceuticals (-4.55%), Wipro (-1.41%) and Dr.Reddys Laboratories (-1.37%).

The SENSEX Index Closes 0.81% Higher

ISEQ increased to a 17-year high of 10265.00 Index Points. Over the past 4 weeks, Irish Stock Exchange Overall Index gained 5.56%, and in the last 12 months, it increased 11.86%.

Stocks in Ireland Hit 17-year High

The FTSE 100 traded higher on Tuesday, boosted by a 3.8% rally in Rentokil shares after the pest control firm announced strong results and a management shake-up. The departure of North America CEO Brad Paulsen, whose division was linked to last year’s profit warning, was seen as a positive move by investors, signaling potential improvements. AstraZeneca, Unilever, and Relx also gained over 0.5%, while oil majors Shell and BP edged higher. On the downside, HSBC slipped 0.7% after announcing plans to scale back parts of its European investment banking operations as part of a broader restructuring led by new CEO Georges Elhedery.

UK Stocks Rise on Tuesday

The CAC 40 traded flat around 7,906 on Tuesday, attempting to rebound as selling pressure sparked by the recent launch of the low-cost AI model DeepSeek began to ease. Meanwhile, investors are now turning their attention to major monetary policy updates, with the Federal Reserve set to announce its decision on Wednesday, followed by the European Central Bank on Thursday, alongside the corporate earnings season. Among individual stocks, Eurofins Scientific led gains, rising nearly 2%, while Teleperformance followed with a 1.8% increase, hitting a two-month high, and Engie advanced 1.6%. On the downside, Schneider Electric was the worst performer, plunging 4.7% to its lowest level in over a month, while STMicroelectronics fell 1.4% and Saint-Gobain declined 0.8%.

French Stocks Trade Flat

CH20 increased to a 33-month high of 12488.00 Index Points. Over the past 4 weeks, Switzerland Stock Market Index (CH20) gained 7.61%, and in the last 12 months, it increased 9.22%.

Stocks in Switzerland Hit 33-month High

The DAX was flat to higher around 21,290 on Tuesday, reflecting a cautious sentiment in global markets following the previous day's market turbulence  triggered by concerns over China's growing AI competition. Traders focused on ongoing corporate results, while awaiting the Fed's two-day policy meeting outcome on Wednesday. On the corporate front, Sartorius climbed more than 10%, leading the market after the German pharmaceutical equipment firm reported Q4 earnings that exceeded expectations, along with strong BPS orders. SAP shares also gained about 2% after the company raised its operating profit forecast to €10.6 billion and revealed it had met or exceeded all of its financial objectives for 2024.

DAX on Cautious Note

The FTSE MIB rose by 0.2% in early trading on Tuesday as selling pressure, triggered by the recent launch of the low-cost AI model DeepSeek, subsided. Investors are now shifting their focus to the upcoming monetary policy announcements from the Federal Reserve on Wednesday and the European Central Bank on Thursday. Among stocks, notable gainers included Ferrari (1.2%), Snam (1.3%), Recordati (-1.4%), and Telecom Italia (2.9%). On the downside, STMicroelectronics (-1.2%), Tenaris (-1.3%), and Prysmian (-1.2%) saw declines.

Italian Stocks Edge Higher

Major European bourses attempted to rebound on Tuesday, with the STOXX 50 trading flat to higher and the STOXX 600 gaining 0.2%, following losses in the previous session, which were driven by concerns over rising AI competition from China that sparked a selloff in the tech sector. Investors also shift their focus to corporate earnings. SAP shares gained about 2% after the company revised its operating profit outlook higher to €10.6 billion and said that it met or exceeded all its financial outlook goals for 2024. ASML Holding also added 0.5%, after sinking 7.5% on Monday. Infineon added 0.1%, after dropping 2%.

Stocks in Europe Attempt to Rebound

European equity markets were set for a higher open on Tuesday, recovering some of the losses from the previous session when concerns about rising AI competition from China triggered a selloff in Western AI companies. Investors were also preparing for key earnings reports from LVMH, SAP, Logitech, and Foxtons Group. On the economic front, French consumer confidence data and Spain's unemployment rate are on the horizon. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were up 0.1% and 0.2%, respectively.

European Markets Poised for Higher Open

PSEi decreased to a 14-month low of 6153.00 Index Points. Over the past 4 weeks, Philippines Stock Exchange PSEi Index lost 5.47%, and in the last 12 months, it decreased 6.61%.

Stocks in Philippines Hit 14-month Low

The Hang Seng ended 0.14% higher at 20,225 on Tuesday in a half-day session ahead of the Lunar New Year celebration. This marked the third consecutive session of gains, mainly supported by advances in tech and consumers. Traders closely followed developments regarding an affordable AI model from Chinese startup DeepSeek, as its emergence raised concerns about US dominance in the tech sector. China Vanke Co. surged 2.1% after reshuffling its management, following assurances from Chinese authorities to support the troubled builder. Xiaomi Corp. finished at a record high, surging over 3%. Conversely, China South City Holdings tumbled around 9% after being hit with a winding-up petition in Hong Kong over alleged non-payment of about $306.2 million related to bonds that matured in April 2024. For the week, the index added 0.8%, marking its third consecutive increase. Markets will be closed for the rest of the week and will reopen on Monday, February 3.

Hang Seng Rises Slightly at Close

In Tokyo,  the Nikkei 225 Index decreased 634 points or 1.60 percent on Tuesday. Losses were driven by Advantest (-11.51%), Japan Steel Works (-9.65%) and Fujikura (-9.34%).

The Nikkei 225 Index Closes 1.60% Lower

The S&P/ASX 200 Index fell 0.12% to close at 8,399 on Tuesday, paring gains from last week as investors returned from the holiday-extended weekend. Australian shares also tracked losses on Wall Street overnights, sparked by concerns over Chinese startup DeepSeek potentially threatening the dominance of US AI leaders. Investors are now eyeing Australia’s quarterly inflation data later this week, seeking insights into the Reserve Bank of Australia’s next move on interest rates. A softer-than-expected inflation reading could bolster expectations that the central bank may begin cutting rates in February. Leading the decline, uranium miner Paladin Energy saw a sharp drop of over 9%, while data center firm NextDC lost 7.2%. Notable losses were also seen from Macquarie Group (-1.5%), Transurban Group (-1.4%) and Northern Star Resources (-2.2%).

Australian Shares Slip in Post-Holiday Trade

Shares in India rose by 351 points, or 0.5%, to 75,717 in morning trade on Tuesday, halting losses in the previous two sessions and moving away from their lowest level in over seven months the day before. This gain was mainly driven by increases in banking and financial services stocks following the Reserve Bank of India's statement of several measures to boost liquidity in the banking system. The RBI's decision raised hopes of a potential rate cut in the coming month. Limiting the gains, however, was a downbeat session on Wall Street overnight, following a sell-off amid concerns about investment in the AI sector due to rising competition from Chinese AI lab DeepSeek. A persistent foreign capital outflow also capped the rise, alongside weak Q3 earnings results. The Nifty 50 rose by 0.3% to nearly 22,900, with the tech and financial sectors rising over 1% each. Among early gainers were HDFC Bank (2.5%), Axis Bank (2.4%), ICICI Bank (2.3%), Bajaj Finance (1.4%), and Bajaj Finserv (0.8%).

India Stocks Rise from Over 7-Month Lows

New Zealand's benchmark S&P/NZX 50 closed 0.3% lower at around 12,957 on Tuesday, marking its third consecutive session of losses. The decline mirrored overnight losses on Wall Street, driven by growing concerns over US dominance in AI. Traders also remained cautious as the February 1 deadline for the initial round of tariffs approached, with targets including China, New Zealand’s largest trading partner. Markets are also awaiting policy decisions from the Federal Reserve, where it is widely expected that rates will be held steady. Most of the index heavyweights were in the red, with Infratil dropping 3.6%, making it the worst performer. Mercury NZ, Contact Energy, and Meridian Energy fell between 0.5% and 2.7%, while Fisher & Paykel Healthcare declined by 2.4%.

NZ Stocks Slips for 3rd Session

Shares in Hong Kong were little changed on Tuesday morning, hovering around 20,210 after gaining in the prior two sessions. Trading was sluggish, with markets set to close early as the Lunar New Year looms. Meanwhile, US futures pulled back after a Monday sell-off on Wall Street fueled by mounting concerns over investment in the AI sector, following the emergence of Chinese startup DeepSeek. On the trade front, Hong Kong's export growth notched a 4-month high in December while imports fell for the first time in 10 months. For the week, the Hang Seng is on track to gain for the third session, up around 0.7% so far, supported by signs of institutional investors starting to flow into mainland stock markets following Beijing's move last week to attract long-term capital from insurers and mutual funds. Xiaomi Corp. hit a record high, jumping over 2%. Meanwhile, China Cinda Asset Management slipped 3.4% on a weak earnings outlook. Stock activity will resume next week.

Hong Kong Equities Muted ahead of Holidays

The Nikkei 225 Index dropped 1.4% to around 39,000, while the broader Topix Index lost 0.6% to 2,740 on Tuesday, extending losses from the previous session. Chip-related stocks linked to the US AI value chain led the decline, following concerns that Chinese startup DeepSeek could challenge the dominance of US AI leaders. Local stocks also continued to be pressured by a hawkish stance from the Bank of Japan. On Friday, the central bank raised interest rates and revised its inflation forecasts higher, signaling the possibility of further rate hikes. Investors are now focused on upcoming labor, inflation, and other economic data for further guidance. Notable losses were seen in chip and AI-related companies, including Disco (-8.4%), Advantest (-9.1%), Tokyo Electron (-5.2%), Hitachi (-6.2%), and SoftBank Group (-5.4%).

Japanese Shares Fall Amid AI Selloff

The S&P/ASX 200 Index gained 0.1% to around 8,415 on Tuesday, marking its second consecutive day of gains as investors returned from the holiday-extended weekend. Despite a selloff on Wall Street, sparked by concerns over Chinese startup DeepSeek potentially threatening the dominance of US AI leaders, Australian stocks held steady. Investors are now eyeing Australia’s quarterly inflation data later this week, seeking insights into the Reserve Bank of Australia’s next move on interest rates. A softer-than-expected inflation reading could bolster expectations that the central bank may begin cutting rates in February. Commodity-linked and financial stocks drove the market’s gains, with BHP Group rising 0.9%, Bluescope Steel up 2.2%, and Commonwealth Bank gaining 0.8%. However, uranium miner Paladin Energy saw a sharp drop of nearly 12%, while data center firm NextDC lost 6.7%.

Australian Shares Rise in Post-Holiday Trade

US stock futures steadied on Tuesday following a sharp selloff in the previous session, particularly in artificial intelligence-related stocks, as concerns over a new AI competitor from China intensified. Chinese startup DeepSeek recently launched a free, open-source large language model that utilizes cheaper chips, less data, and lower energy consumption, sparking fears that US AI leaders could lose their competitive edge. On Monday, the S&P 500 and Nasdaq Composite tumbled 1.46% and 3.07%, respectively, with AI-focused stocks and those in the AI supply chain leading the decline. Notable drops included Nvidia (-17%), Broadcom (-17.4%), Oracle (-13.8%), Vertiv Holdings (-29.9%), and Vistra Corp (-28.3%). In contrast, the Dow gained 0.65%, buoyed by gains in defensive sectors amid falling bond yields. Investors now turn their attention to upcoming earnings reports, the latest Federal Reserve decision, and an important inflation reading later this week.

US Futures Stabilize After Sharp Selloff

Stocks in New Zealand slipped 85 points or 0.7% to 12,914 on Tuesday morning session, marking the third straight session of losses amid mounting worries on Wall Street Monday that low-cost Chinese AI startup DeepSeek could pose a big threat to US AI dominance.

New Zealand Shares Fall for 3rd Session

In New York,  the Dow Jones Index rose 264 points or 0.59 percent on Monday. Leading the gains are Salesforce (4.20%), J&J (4.19%) and Travelers Companies (4.09%). Top losers were Nvidia (-16.78%), Cisco Systems (-5.08%) and Caterpillar (-3.24%).

The Dow Jones Index Closes 0.59% Higher

The Ibovespa rose 1% on Monday, surpassing the 123,500 level and reaching a six-week high, driven by gains in the financial and retail sectors. Banco do Brasil, Santander, Itaúsa, and Bradesco led the rally, with gains ranging from 1.3% to 4%. Petrobras also saw solid gains after receiving an upgrade from major US brokerages. However, WEG shares dropped 7.7% amid concerns over competition from Chinese AI startup DeepSeek, which is raising doubts about future AI investments and their impact on companies like WEG. Meanwhile, investors closely monitored fiscal developments in Brasília, particularly the federal government's fiscal discipline, as a rise in credit risks has weighed on Brazilian assets. Increased deficit spending, highlighted by mid-January inflation data, has fueled expectations for a 100-basis point hike at this week's BCB meeting and the February decision.

Ibovespa Climbs on Financial Stocks Gains

The S&P/TSX Composite Index dropped 0.7% to close at 25,289 on Monday, ending a nine-session winning streak as the commodity-heavy index was weighed down by falling oil and gold prices, alongside a broad decline in tech stocks. Energy producers led the downturn, with Canadian Natural slipping 0.9% amid continued weakness in oil prices, while TC Energy, a major energy infrastructure giant, fell 3.8%. Mining stocks also underperformed, with Wheaton Precious Metals declining 1.1% due to lower bullion prices. The tech sector also exerted pressure on the index, as concerns grew over the U.S.'s AI dominance following claims that China's DeepSeek model is more efficient than its U.S. counterparts. Investors were also cautious ahead of key quarterly results from Apple, Microsoft, Meta, and Tesla, as they awaited further insights into the future of the AI-driven market.

TSX Drops as Oil, Gold, and Tech Stocks Weigh

U.S. stocks, particularly in the tech sector, plunged on Monday, with chipmakers like Nvidia falling 16.8%, while Broadcom, Oracle, and Arista lost between 13.8% and 22.4%. The Nasdaq and S&P 500 closed down 2.8% and 1.3%, respectively, after rising concerns over a new AI competitor from China. The Chinese startup DeepSeek’s AI Assistant overtook ChatGPT on Apple’s App Store, sparking fears that U.S. AI leaders could lose their dominance. DeepSeek’s model, which uses cheaper chips and less data, is seen as a potential disruptor to the AI supply chain, affecting semiconductor firms and data centers. Other major tech stocks, including Microsoft and Alphabet, also declined. Meanwhile, defensive sectors saw gains, aided by a drop in bond yields, helping the Dow close 310 points higher. Looking ahead, the Federal Reserve is expected to keep rates unchanged on Wednesday, with key data releases, including GDP growth and PCE inflation figures, drawing investor focus.

US Stocks Drop on AI Concerns, Nvidia Falls 16.8%

The DAX closed 0.5% lower at 21,280 on Monday, in line with similar developments in other major European bourses amid pressure from companies that produce chips and computing infrastructure. The selloff followed increased attention on Chinese-developed DeepSeek’s AI large language model, which has achieved similar performance to more established Western counterparts with claims of consuming a fraction of power and needing less advanced hardware. Siemens sank 3.4% while Siemens Energy, a large provider of power for data centers, plummeted by 20%. On the other hand, other sectors were mostly in the green, with auto producers and insurance providers leading the pace.

Tech Weighs on DAX

The Nasdaq 100 sank over 3% while the S&P 500 lost nearly 2% on Monday, pressured by plunges for heavyweight tech stocks in the AI infrastructure sectors as funds recalibrated their speculative positions on semiconductor firms. The selloff followed increased attention on Chinese-developed, DeepSeek’s AI large language model, which has achieved similar performance to more established US counterparts with claims of consuming a fraction of power and needing less advanced hardware. Consequently, investors sold off chips and AI infrastructure stocks that benefited from last year’s rally on the sector, with Nvidia sinking 15% while Broadcom, Oracle, and Arista lost between 18% and 12%. On the other hand, gains for defensive sectors amid the plunge in bond yields allowed the Dow to edge marginally higher. In turn, the Fed is due to holds rate unchanged on Wednesday, while key data releases, including GDP growth and PCE inflation figures, are also awaited.

Tech Pressures Nasdaq, Nvidia Sinks 15%

The FTSE 100 closed flat on Monday after recovering early losses, as gains in AstraZeneca (+1.4%), HSBC (+0.7%), and Unilever (+2.2%) offset declines in energy and mining stocks. Shell fell over 1% and BP dropped 0.8%, while miners like Glencore (-4%), Antofagasta (-2.8%), and Anglo American (-5%) were hit hard by falling metal prices, particularly copper, as concerns grew over China's slowing economy. China's factory activity slowed to its weakest pace since August, and industrial profits fell for a third consecutive year, dampening demand for commodities. Additionally, Anglo American tumbled more than 5% amid reports its cooled share price has dampened BHP’s takeover interest. On the corporate front, Dr. Martens met expectations for Q3 and kept its outlook steady, while Ryanair reduced its passenger growth target again due to Boeing's delivery delays.

UK Stocks End Little Changed

The FTSE MIB ended nearly flat on Monday as mixed performances from key stocks balanced out. Gains in UniCredit (+0.5%) and Enel (+1.6%) were offset by declines in Intesa Sanpaolo (-0.4%) and Ferrari NV (-0.6%). Investors digested news of a breakthrough in artificial intelligence from China's DeepSeek, which raised concerns about US dominance in the sector. European markets are bracing for a busy week ahead, with earnings reports from major companies and critical central bank decisions. The European Central Bank and the Federal Reserve are set to announce their latest monetary policies, while growth data from the Eurozone, France, and Germany will provide further economic signals.

Italian Stocks Steady on Monday

In Frankfurt,  the DAX Index fell 113 points or 0.53 percent on Monday. Leading the losses are Siemens Energy (-20.21%), Siemens (-3.61%) and Infineon (-1.88%). Top gainers were Brenntag (3.59%), Symrise (3.27%) and Zalando (3.01%).

The DAX Index Closes 0.53% Lower

European stock indices closed lower on Monday as heavy losses for tech and industrial companies offset a positive session for other sectors, dragged by concerns of lower demand for chips and computer hardware systems. The STOXX 50 dropped 0.6% to close at 5,187 while the STOXX 600, which has a lower weight for tech, closed flat at the record level of 530. ASML plummeted by 7.5%, ASMI sank 12%, and Infineon lost 2%, tracking global chip stocks as greater attention on the efficiency of the Chinese-developed DeepSeek AI model challenged speculative bets on the US’s AI-infrastructure returns. Similarly, Schneider Electric lost 10% and Siemens lost nearly 4%, tracking infrastructure companies with exposure to the sector. On the other hand, other sectors recorded a strong session. LVMH gained 3% ahead of its earnings due after tomorrow’s session, while banks and consumer defensive stocks rose sharply.

Tech Weighs on European Stocks

The CAC 40 fell 0.3% to 7,907 on Monday, retreating from the seven-month highs reached in the previous session and ending a nine-day winning streak, amid a global selloff in the tech sector, driven by concerns about the U.S.'s dominance in AI. Investors also remained cautious, closely monitoring recent policy developments from President Donald Trump and awaiting interest rate decisions from the ECB and the Fed later in the week. Among individual stocks, Schneider Electric led the losses, plunging 9.5%, followed by Legrand, which tumbled 7%. On the upside, luxury giant LVMH gained 2.8% ahead of its earnings release tomorrow, while financial services stocks also outperformed.

CAC 40 Weighed by Tech Selloff

The S&P/TSX Composite Index dropped 0.8% to below 25,260 on Monday, snapping a nine-session winning streak as the commodity-heavy index was weighed down by falling oil and gold prices, alongside a broad decline in tech stocks. Energy producers, including Canadian Natural, Suncor, Imperial Oil, and Cenovus, led the downturn with losses ranging from 1.1% to 2.1%, reflecting continued weakness in oil prices. Likewise, major mining stocks like Agnico Eagle, Barrick Gold, Wheaton Precious, and Franco-Nevada saw declines between 1% and 1.7% amid lower bullion prices. Shopify, tracking the broader tech sector, fell over 2% as concerns about the US's AI dominance grew following Chinese startup DeepSeek's AI model overtaking ChatGPT, while investors awaited key quarterly results from Apple, Microsoft, Meta, and Tesla to assess the future of the AI-driven market.

TSX Breaks 9-Day Win Streak

US stocks tumbled on Monday, with the S&P 500 falling 1.8%, the Dow Jones dropping roughly 207 points, and the Nasdaq nearly 3%, driven by growing concerns about the US's dominance in AI. Chinese startup DeepSeek's latest AI model, praised for its cost-effectiveness and ability to operate on less-advanced chips, garnered significant attention as its AI Assistant overtook ChatGPT to become the top-rated free app on the US Apple App Store. The tech sector was by far the worst performer. Nvidia sank more than 10%, Broadcom slumped 11.5% and Micron Technology lost over 7%. Meanwhile, traders are closely monitoring upcoming quarterly results from megacaps, including Apple, Microsoft, Meta, and Tesla, which are expected to heavily influence the trajectory of the AI-driven bull market. On the economic front, the Federal Reserve is anticipated to hold interest rates steady, while key data releases, including GDP growth and PCE inflation figures, remain in focus.

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