Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Chinese Stocks Rally to Two-Year Highs: Optimism Over Beijing Stimulus
Chinese stock markets experienced strong gains over the past three weeks, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes surging between 16% and 20% since late September. This rally pushed the indices to their highest levels in two years, driven by growing optimism over Beijing’s fiscal stimulus measures.
UBS Analysts Maintain Positive Outlook
Despite the recent cool-off in the rally, UBS analysts remain optimistic. They emphasized that while Chinese stocks are no longer as undervalued as a month ago, there is still significant upside. UBS continues to maintain an Overweight rating on local stocks, pointing to long-term growth potential.
Beijing's Fiscal Stimulus: Progress and Concerns
China's Ministry of Finance recently introduced a range of fiscal measures, including increased debt issuance, property market relief, and more support for provincial governments. However, investor sentiment was dampened by the lack of specific details on the timing and scope of these measures. There is also concern over the absence of initiatives aimed at boosting consumer spending, a key driver of economic recovery.
Capital Outflows from India Signal Market Shift
Interestingly, UBS analysts noted that China's recent stock market gains coincided with significant capital outflows from India, another major emerging market. This shift in sentiment aligns with UBS’s Underweight rating on Indian stocks, indicating a broader trend of investor preference for Chinese markets amid Beijing’s ongoing stimulus efforts.
