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On September 2nd, at a technology event in North Carolina, Nvidia CEO Jensen Huang called on G20 members to accelerate the application of artificial intelligence to drive economic growth and urged major world economies to expand data centers and other infrastructure to support this emerging technology. Huang stated, "Every country needs to build infrastructure to support its economy." He likened the technology to water, electricity, and other utilities. He said, "Its a great equalizer." Huang added that for a country, the "worst outcome" is falling behind. He warned that this could happen if the public and policymakers allow concerns about AI to dominate discussions about the technology.The Dow Jones Industrial Average opened 230.07 points higher, or 0.44%, at 52,996.95 on Wednesday, September 2; the S&P 500 opened 3.42 points higher, or 0.04%, at 7,634.96; and the Nasdaq Composite opened 26.34 points lower, or 0.10%, at 26,073.44.September 2nd - US stocks opened with the Dow Jones Industrial Average up 0.37%, the S&P 500 up 0.09%, and the Nasdaq Composite down 0.02%. Most popular Chinese concept stocks fell, with NIO (NIO.N) down nearly 4%, Bilibili (BILI.O) down over 1%, and JD.com (JD.O), NetEase (09999.HK), and Baidu (BIDU.O) all down over 0.5%.Ford Motor Company (FN) sold 170,681 vehicles in August, up 10.3% year-over-year.On September 2, Mohsen Rezaei, Secretary of Irans Supreme National Security Council, stated that Iran has formulated new strategies in military, diplomatic, and counter-economic blockade areas, aiming to "destroy the enemys foundations." Rezaei posted on social media that no matter how much the enemy "struggles to the death," they cannot escape their current predicament. He said the enemy will soon see Irans new strategies in the military, diplomatic, and counter-economic blockade areas.

GBP/USD continues to trade below 1.2000 as risk aversion increases, with the US ISM PMI in focus

Alina Haynes

Jan 04, 2023 14:53

GBP:USD.png 

 

In the early Asian session, the GBP/USD pair has moved below the psychological support of 1.2000. Due to a risk-averse market mentality, the pound has been unable to surpass 1.2000. A dramatic fall in investors' risk appetite prior to the release of the United States ISM Manufacturing PMI data and the Federal Reserve's (FedDecember) monetary policy minutes boosted the United States Dollar.

 

The S&P 500 remained on a downward trajectory on Tuesday, showing the market participants' continued aversion to risk. The US Dollar Index (DXY) achieved a two-week high of roughly 104.40 after recovering strongly from 103.

 

Investors are afraid that the Federal Reserve (Fed) may be compelled to adopt additional policy tightening in order to confront persistent inflation. Bill Dudley, a Bloomberg analyst, identified three focal points for the Fed in CY2023. The labor market's tight conditions and low unemployment rate are the primary driver of wage inflation. Second is the underinvestment in the oil and gas sector, which could worsen inflation given Russia's ability to weaponize its control over major oil supplies. The third aspect is the performance of the budget deficit, which is projected to reach approximately 5% of Gross Domestic Product (GDP) in 2023.

 

In the meantime, investors await the release of the US ISM Manufacturing PMI, which is expected to be lower at 48.5 compared to the previous release of 49.0. While the New Orders Index is expected to be higher at 48.1, compared to the previous release's 47.2, the data is expected to be down at 47.2.

 

The diminishing appetite for corporate debt raises red flags for the United Kingdom's economic outlook. 70% of UK CFOs believe credit to be "expensive" in light of the Bank of England's (BoE) most severe tightening policies in more than three decades, according to a quarterly poll conducted by Deloitte CFP and cited by Reuters. In the meantime, the British government has withdrawn the obligation for Chinese newcomers to undergo Covid testing.


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