Key facts
- Asian markets were hampered by concerns over AI funding needs and the tech sector's performance.
- Oil prices fell on a potential waiver of sanctions on Russia, though the decision was not final.
- Geopolitical tensions and safe-haven flows supported a rally in sovereign bonds.
- Investors are anticipating earnings reports from Meta, Lam Research, Texas Instruments, SpaceX, Tesla, Netflix, Procter & Gamble, General Motors, and GE Aerospace.
Asian share markets declined on Monday, weighed down by concerns over the substantial funding required for artificial intelligence infrastructure and its potential impact on book values. This unease overshadowed a week anticipated to be busy with corporate earnings reports. Oil prices experienced a drop following a statement from US President Donald Trump regarding a potential waiver of some sanctions on Russia, although he later clarified that a final decision had not been made. The geopolitical tensions, coupled with a shift towards safe-haven assets, contributed to a rally in sovereign bonds, with 10-year Treasury yields falling. Wall Street stock futures saw a modest increase. In Europe, political uncertainty in France weighed on stocks and the euro, while the dollar dipped against the yen. Gold prices rose, benefiting from falling yields.