Last week, the U.S. intervened in the currency markets to bolster the yen, but instead of selling dollars as in past interventions, it sold euros. This strategy appears aimed at preventing negative repercussions on the Treasury market, as there were concerns that Japan might need to sell large amounts of Treasurys to fund its own currency interventions.
Following this intervention, the euro strengthened to 1.1558 against the dollar, marking its highest level in nearly two months. In addition to currency movements, the earnings reports from major companies like Amazon, HSBC, and Saudi Aramco are noteworthy. Amazon's market capitalization surpassed $3 trillion for the first time, driven by strong earnings and its investments in AI companies.
HSBC reported a 60% year-on-year increase in pre-tax profit, reaching $10.1 billion, aided by growth in net interest income. Meanwhile, Saudi Aramco's profits surged amid rising oil prices, reflecting the broader trend of high earnings in the oil sector due to geopolitical tensions.
Additionally, Hugging Face's CEO highlighted China's advancements in AI, suggesting that the U.S. could fall behind if it does not adapt its collaborative approach. These developments collectively indicate shifting dynamics in both currency and technology sectors that investors should monitor closely