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Asia-Pacific markets showed gains following record highs on Wall Street, with the South Korean won strengthening 0.2% against the dollar after a martial law decree was lifted. The S&P 500 and Nasdaq Composite reached new closing highs, while Five Below's stock surged 11% after exceeding revenue expectations. In contrast, Synopsys shares fell over 6% due to a disappointing fiscal forecast. Investors are advised to remain diversified and view market corrections as temporary opportunities.
UBS and other financial institutions are suggesting that it may be time to short the dollar. This perspective comes amid ongoing discussions about the currency's performance and potential shifts in the market. Investors are advised to consider these insights as they navigate their strategies.
Far-right leader Marine Le Pen has allied with a left-wing coalition to successfully topple the French government, leading to significant political instability. A no-confidence vote against Prime Minister Michel Barnier's administration, which lasted only three months, marks the shortest tenure since the establishment of the Fifth Republic in 1958. This turmoil is expected to further unsettle investors in the country.
France's political turmoil, marked by the dismissal of Prime Minister Michel Barnier over the 2025 budget, threatens to exacerbate its rising national debt, which has surged nearly 43% since 2017. Without a new budget, the deficit is expected to grow, undermining France's economic credibility and potentially leading to a recession by late 2024. The ongoing crisis could also pressure the euro and impact investor confidence in the eurozone.
Incoming Senate Republican leader John Thune anticipates discussions with Treasury secretary nominee Scott Bessent regarding tariffs and the Federal Reserve during their meeting. Thune expressed interest in hearing Bessent's perspectives on these key topics ahead of the nomination hearings.
Argentina's President Javier Milei is set to visit Switzerland on January 24, 2025, for an event at the Liberal Institute in Zurich. He is also expected to attend the World Economic Forum in Davos from January 20-24, although this has not been officially confirmed. Milei, who took office amid a severe economic crisis, is known for his radical austerity measures and commitment to liberal reforms.
President Yoon Suk Yeol's late-night announcement of martial law has plunged one of Asia's largest economies into a state of crisis. The declaration raises concerns about stability and governance in the region, prompting widespread reactions from various sectors.
President Joe Biden has announced $600 million in new financing for a multi-country railway during his visit to Angola, aimed at enhancing U.S. investment in Africa's critical minerals infrastructure and countering Chinese influence. This funding builds on a previous commitment of $553 million for the Lobito Trans-Africa Corridor, which connects the Central African copperbelt to the Angolan coast. The investments will also support agriculture, clean energy, health, and digital access in the region.
Foreign institutional investors (FIIs) net bought shares worth Rs 1,798 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 901 crore. At the close, the Sensex rose by 110.58 points to 80,956.33, and the Nifty increased by 10.30 points to 24,467.45. Year-to-date, FIIs have net sold Rs 2.94 lakh crore, whereas DIIs have net bought Rs 5.72 lakh crore in shares.
Romania has tapped into its foreign exchange buffer to manage a €6 billion payment surge amid escalating political tensions, according to Finance Minister Marcel Bolos. The country's budget deficit, already projected to be the highest in the EU, is expected to exceed the 7% target of economic output due to the political crisis following a pro-Russian candidate's unexpected presidential election success, which has also driven bond yields higher.

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