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Asian tech stocks generally fell on Friday after Apple raised prices. Investors are concerned that rising component costs will dampen demand for end devices and ultimately drag down memory chip prices, which have been supporting the AI investment boom. The market is reassessing whether soaring memory prices, driven by continued strong AI demand, will begin to suppress overall spending by increasing costs for electronics manufacturers and consumers. Apples price increase is one of the clearest signals yet that the industrys pricing power may be at the expense of future demand, prompting the market to reassess the valuation of AI-related semiconductor stocks. "The market is no longer viewing rising memory prices as a necessary positive factor for the entire AI deal," said Charu Chanana, chief investment strategist at Saxo Bank. "While this demonstrates that demand for AI infrastructure remains strong, it also drives up the cost of building and using AI. The risk is that the current strong memory chip cycle may slow down the entire AI deal in the future, and the market has already begun to price this in."According to IFR, a Reuters subsidiary, Zhejiang Laifu Harmonic Drive Co., Ltd. has set its Hong Kong IPO price at the high end of the range, aiming to raise HK$1.1 billion.The International Atomic Energy Agency (IAEA) stated that repairs to the transmission line are not expected to be completed in the short term, but are still underway.Russian Defense Ministry: Russia shot down 660 drones overnight.International Atomic Energy Agency Director General Grossi: Iran has the option to reduce the concentration of nuclear materials or transport them out of the country, but it must agree to do so.

WTI advances toward $75.00 as China-related demand optimism offsets recession fears

Daniel Rogers

Jan 09, 2023 11:55

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In the early hours of Monday, WTI steadily climbs near the intraday high of $74.70 as bullish emotion competes with economic slowdown worries. Despite this, the weaker US Dollar and a light schedule allow buyers of black gold to maintain control following Friday's mixed performance.

 

In spite of this, the risk profile remains elevated in light of China's reopening of its borders after a three-year closure. On the same line, Guo Shuqing, party secretary of the People's Bank of China, made his remarks (PBOC).

 

Reuters, transmitting China unlock news, claimed that "about 2 billion journeys are anticipated this season, roughly doubling the volume of previous year, and recovering to 70% of 2019 levels," citing a statement from the Chinese government.

 

On the other side, PBOC's Shuqing stated, "The world's second-largest economy is likely to recover rapidly due to the country's optimal Covid-19 response and the continued implementation of its economic policies."

 

The US Dollar Index (DXY) fell the most in three weeks the day before, down 0.20% intraday to 103.70 as of press time, as the US employment report failed to excite greenback purchasers and the US activity numbers stoked fears of an economic slowdown. It's worth mentioning that the previous day's disappointing US wage growth, ISM Services PMI, and Factory Orders weighed on Treasury bond yields and the DXY.

 

On a different page, reports regarding a delay in the restoration of the colonial pipeline and the Russia-Ukraine conflict appear to also benefit energy buyers. Traders fear additional rate hikes ahead of the release of the Consumer Price Index (CPI) for December from China and the United States on Wednesday and Thursday, respectively, which tests the positive momentum.

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