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Article | 02 July 2024 | Investments
3.5%S&P 500 |
-1.8%EURO STOXX 50 |
-1.3%FTSE 100 |
-6.4%CAC 40 |
-1.4%DAX 30 |
-0.8%BEL 20 |
-3.9%FTSE MIB |
-3.3%IBEX 35 |
1.3%TOPIX |
| Source: Bloomberg 28.06.2024 |
Nvidia, the designer of the microchips that enable the generative AI boom, briefly became the most valuable company in the world. As its valuation touched $3.3 trillion, the company overtook Microsoft and Apple to take pole position. The order changed again when Apple showcased a “new personal intelligence system”, which links its voice assistant Siri to ChatGPT. The Apple share price powered to new highs. Since then, Apple has opted to delay the launch of AI-enabled features on its iPhones within the European Union (EU), due to concerns over stringent new tech regulation.
The ECB (European Central Bank) did not disappoint markets and delivered a 25 basis points rate cut at its June meeting. This was followed by a second consecutive cut from the Swiss National Bank. But the US Federal Reserve (Fed) struck a more hawkish note at their meeting. The ‘dotplot’ predictions from Fed governors now indicate only one cut this year, from their previous forecast of three cuts. Markets are looking for that Fed cut to come in late summer. And bets are now on as to when the ECB will cut again, or whether that’s ‘one and done’.
The EU imposed tariffs on EV (electric vehicle) imports from China, although at lower levels than expected. The range will be between 18-40%, on top of the existing 10% tariff. BYD, considered the main rival to Tesla, will only attract the lowest tariff. The BYD share price jumped 9% on the news. These new rates could be subject to negotiation, however, after the EU and China announced tariff talks. Meanwhile, in its annual report, the Energy Institute stated that global fossil fuel consumption is still hitting record levels. This prompted claims that ‘the transition (to cleaner energy) has not even started’.
