๐๏ธ Broader Market Consolidation โ Geopolitics, AI Stock Weakness, and UK Political Uncertainty
๐ฏ Overview
Overseas markets may see broader consolidation ahead.
Investor sentiment is being weighed down by:
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๐ Geopolitical risks
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๐ค Weakness in AI-related stocks
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๐ฌ๐ง Political uncertainty in the UK
Multiple risk factors are unfolding simultaneously, creating a nervous market tone.
๐ Geopolitical Risks
๐บ๐ธ๐ฎ๐ท United States โ Iran
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Third round of nuclear talks held
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Breakdown avoided, but no agreement reached
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Negotiations postponed to a later date
โ Uncertainty remains elevated.
๐ต๐ฐ๐ฆ๐ซ Pakistan โ Afghanistan
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Reports that Pakistan conducted airstrikes in Kabul
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Defense minister stated the two countries are โeffectively in a state of warโ
โ Fresh tensions are increasing market caution.
๐ค Concerns Around AI Stocks
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Several companies announced restructuring and layoffs
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Tensions reported between the U.S. Department of Defense and Anthropic
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Nvidia posted strong earnings, yet shares faced selling pressure
๐ Signs of overheating correction in AI-related equities
๐ U.S. and European futures trading softer in after-hours
๐ฌ๐ง UK Political Uncertainty
In the February 26 by-election in Gorton and Denton,
the Green Party scored an upset victory.
Some media described it as a โhistoric defeatโ for Prime Minister Keir Starmerโs government.
โ Adds a ceiling to GBP upside.
๐ฑ FX Market (Early London)
USD/JPY
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High: 156.23
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Current: around 156.10
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Hovering near prior NY close (156.13)
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Upside momentum paused
EUR/USD
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Rose to 1.1822 after French GDP and CPI
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Later retreated
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Currently near 1.1795
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Approaching Tokyo low (1.1789)
๐ Month-end flows are distorting directionality.
๐ Key Economic Data Tonight
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France, Switzerland, India, Canada GDP (Q4)
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German employment data
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German flash CPI
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South Africa and Mexico trade balance
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๐บ๐ธ U.S. PPI (January)
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๐บ๐ธ U.S. Chicago PMI (February)
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๐บ๐ธ U.S. construction spending (December)
๐ Speaking Event
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BOE Chief Economist Huw Pill
๐งญ Summary
โ Geopolitical risks persist
โ AI equities under corrective pressure
โ UK politics weigh on GBP
โ Equity futures softer
At the same time:
โ Neither USD nor JPY has formed a decisive trend
โ Month-end flows are amplifying short-term swings
๐ Conclusion
This is a correction phase without clear direction.
Markets remain highly sensitive to geopolitical headlines and equity performance.
Expect choppy, headline-driven price action,
with rapid intraday swings likely to continue.
