Global financial authorities raised the alarm over AI‑fuelled market froth, while diplomatic progress between Washington and Tehran and strong corporate results helped calm investor nerves.
The Bank for International Settlements and a cohort of central bankers warned that an AI‑driven bubble could trigger a global financial crisis if left unchecked, highlighting systemic risks from rapid asset re‑pricing, excessive leverage and concentrated tech exposure.
Diplomacy edged forward: the US and Iran agreed to halt strikes ahead of scheduled talks, a development that eased immediate geopolitical risk. In Ukraine, President Vladimir Putin said he was prepared to enter talks but stopped short of committing to a halt in long‑range strikes.
In tech markets, OpenAI has reportedly pushed back its IPO plans to 2027 amid heightened market uncertainty, underscoring investor caution toward mega‑tech listings. By contrast, Baidu shares jumped about 7% after its AI‑chip unit Kunlunxin said it is targeting a roughly $50 billion Hong Kong IPO, a sign of continued appetite for China’s semiconductor plays.
Earnings momentum supported risk appetite: Prosus said annual profits more than doubled, driven by gains in its e‑commerce holdings and a re‑rating of its Tencent stake; Amsterdam‑listed shares rose roughly 3%.
Markets were broadly constructive. European and Japanese equities posted modest gains, while Hong Kong and mainland China advanced about 1.5% on average. US futures pointed to roughly a 1% stronger open and Brent crude traded near $73 a barrel.
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