This week saw strong earnings reports across various sectors. In the tech sector, notable performances were highlighted by top companies like Apple, Microsoft, Meta and Tesla. Tesla's earnings call featured Elon Musk's prediction that the company would surpass the top five firms, driven by AI. In the financial sector, Deutsche Bank reported key results and in aviation and defense, Boeing and Lockheed Martin released their quarterly earnings.
Gold hit a record high this week after the Federal Reserve kept interest rates unchanged. The Bank of Canada and the European Central Bank each cut rates by 25 basis points. Meanwhile, Fed Chair Jerome Powell said the central bank is closely monitoring AI-driven market sell-offs and awaiting Trump's policies before taking further action.
In tech, OpenAI launched ChatGPT for US government agencies and introduced O3-mini, an AI for STEM tasks. The company also accused Chinese AI app DeepSeek of using its models to train a rival system and DeepSeek topped the App Store charts.
In politics, Vladimir Putin blamed the West for prolonging the Ukraine war, while Israeli Prime Minister Benjamin Netanyahu announced plans to meet Donald Trump at the White House. Trump vowed to impose tariffs on the EU, along with Mexico and Canada and signed an executive order to develop a US version of the Iron Dome missile defense system. Trump also revealed Microsoft's interest in acquiring TikTok and said he ordered airstrikes on an ISIS leader in Somalia. The Democratic National Committee elected Ken Martin as its new party leader. In Serbia, Prime Minister Milos Vucevic resigned amid mass protests. Meanwhile, Israel and Hamas continued their hostage and prisoner exchange, as Hezbollah accused Israel of violating a ceasefire 1,350 times.
This week, key economic data highlighted mixed trends across regions. In Germany, the business climate improved in January, but GDP contracted by in Q4, as its unemployment rose and inflation decreased. Consumer confidence weakened in both Germany and Japan, while Japan's unemployment rate remained steady. In the US, consumer confidence fell in January, but house prices rose, according to reports by both FHFA and S&P/Case-Shiller. The Eurozone's GDP saw no growth in Q4, while the US economy grew.
