Davos 2024 has a new focus. Geopolitics and AI reign supreme, leaving climate, nature, and health concerns relegated to the sidelines. Sustainability champions see a decline in interest, while fossil-fuelled limousines remain ubiquitous. However, pockets of progress remained, with CEOs discussing tactical sustainability steps and initiatives like the Davos Alzheimer's Collaborative. The challenge for WEF is to keep long-term issues like climate and health in the spotlight even when they're eclipsed by AI hype, as its legacy lies in tackling challenges that matter for generations, not just headlines.
EQUITY
Wall Street surged on Thursday, driven by AI stock, with chipmakers like Nvidia and TSMC printing record highs. Apple joined the rally after a buy upgrade, recovering S&P's two days of losses. However, whispers of delayed Fed rate cuts dampened interest-rate-sensitive sectors, and individual company woes weighed on Humana and Birkenstock.
GOLD
Gold's shine dims this Friday, poised for its steepest weekly retreat in six weeks. Hawkish Fed voices echo through bond markets, raising yields and casting a pall on bullion's appeal. Despite geopolitical jitters offering safe-haven allure, a resurgent dollar and diminishing rate-cut hopes clip gold's wings, keeping its price locked below $2,023.
OIL
Crude prices eased slightly on Friday after Thursday's rally. While the IEA and OPEC both predict robust global oil demand in 2024, worries about a potential US-China trade flare-up and high US fuel inventories kept a lid on further gains. Despite the dip, both benchmarks are poised to end the week slightly higher in their uncertain direction.
CURRENCY
Hawkish Fed rhetoric manifested a fifth straight day of dollar gains, sinking expectations for early 2024 rate cuts. This battered Asian currencies as investors exited short-dollar bets. With March cut hopes fading after officials downplayed aggressive cuts, the yen sank on prolonged high US rate concerns.