Artificial intelligence (AI) is great, but laws are greater, especially in Europe. The European Data Protection Board (EDPB) has set up a task force to explore the possibility of a common policy on privacy rules for artificial intelligence, following concerns about ChatGPT's potential to pose threats to privacy, safety, and jobs. Last month, Italy took unilateral action to ban ChatGPT, a move that is considered by Germany, according to its commissioner for data protection. Spain's AEPD watchdog also launched a preliminary investigation into potential data breaches by ChatGPT. As more regulatory bodies turn their attention to AI, it is feared that the advancement in the field will outpace the regulation, resulting in either harmful policy or regulatory lag.
EQUITY
US stocks surged on Thursday as economic data showed cooling inflation and a loosening labour market, raising hopes that the Fed may pause rate hike. The tech-heavy Nasdaq had its biggest one-day percentage jump in almost a month, with rate-sensitive stocks leading the surge. Investors now await the big banks first-quarter earnings on Friday.
GOLD
Gold prices rose in the Asian session due to increased bets on a Fed rate cut following falling U.S. producer prices and rising jobless claims. Economic data and fears of a mild recession helped gold gain about 1.8% this week. Markets predict a 66.8% chance of a 25 basis-point hike in May and rate cuts in the second half of the year.
OIL
Oil prices rose slightly in early Asian trade on Friday, but OPEC's warning on potential headwinds and the possibility of a downgrade in the global demand outlook by the International Energy Agency are putting pressure on prices. However, Chinese crude imports rose 22.5% YoY in March, which may offset worries.
CURRENCY
The US dollar fell to a two-month low as US producer prices unexpectedly fell in March, raising expectations that the Fed is nearing the end of its rate hiking cycle. The euro rose to a one-year high against the dollar as the European Central Bank is expected to keep raising rates to tackle inflation.
