Elon Musk's growing political influence and involvement raise concerns about oligarchic control, where a few wealthy individuals could exert disproportionate influence over society and governance. His net worth has skyrocketed since Trump's reelection, nearing $300 billion as Tesla shares climb higher. The tech billionaire's increasingly public role in European politics and his new position co-leading Trump's Department of Government Efficiency have some market watchers wondering how his political activities might affect Tesla's business relationships, especially in Europe. His recent criticism of European leaders and support for far-right parties has already prompted the EU to consider expanding its investigation into X, his wholly-owned social media platform. A controversial figure like Andrew Tate had also join the UK political scene through his quirky named party, Votebruv. A new age of politics is actively emerging to suit the new generation's preferences and proximity, with populist billionaires at its head.
EQUITY
Tech stocks led the way on Wall Street today, with the Nasdaq jumping 1.2% and the S&P 500 climbing 0.6% as chipmakers blasted off. Micron Technology stood out with an aggressive 11% gain, while industry giant Nvidia rose 3.4% after Taiwan's Foxconn reported higher demand for tech components. Microsoft plans to pour $80 billion into AI data centres, which are the centrepiece of this rally. The week ahead looks busy with all eyes on Friday's jobs report and markets closing Thursday to honour the late President Jimmy Carter.
GOLD
Gold prices are currently uncertain in direction, but most experts are still optimistic. The ongoing geopolitical tensions and strong demand from central banks are keeping gold prices elevated. The December employment report will be the main determinant of gold's next price direction. Meanwhile, the Perth Mint reported a drop in gold sales in December, though silver sales hit a more than one-year high, suggesting that market preferences may be shifting amid high prices.
OIL
Benchmark oil prices fell as traders took profits after last week's five-day rally. Recent weak economic data from the US and Germany has weakened the demand outlook, with losses limited by a weaker dollar. Money managers have been building bullish positions, but ING analysts see plenty of supply to meet demand through 2025. Saudi Arabia's price hike for Asian buyers shows some strength in physical markets, though China's market continues declining.
CURRENCY
The dollar is cooling off as Wall Street bets that Trump's trade plans won't be as restrictive as feared, shrugging off Trump's denial of the report, with the dollar index sliding below 108. This shift has benefitted other major currencies, with the euro bouncing up to $1.04 and the British pound climbing to $1.25. The Chinese yuan tells a different story, stuck near 16-month lows even as China's central bank tries to intervene.
