SoftBank Soars 10% as Stargate AI Venture Unveiled

The announcement of the $500 billion Stargate AI infrastructure venture, involving OpenAI, SoftBank, and Oracle, lifted SoftBank shares by 10%, boosting Japan's Nikkei by 1.7%. US markets gained as Trump’s restrained 10% tariff plan eased investor concerns, while Netflix shares surged 14% due to record subscriber growth. European markets expect a slight rise, with attention on ECB officials' remarks at Davos amid expectations of a 25-basis-point rate cut.

Equities

The FTSE 100 rose by 0.3% on Tuesday, closing just below its all-time intraday high of 8,548.59 points, supported by a weaker sterling. Lloyds Banking Group saw its shares climb 4% after the Financial Times reported government support to protect car-loan providers from significant payouts in a key misselling case. Barclays shares added 1.4%, contributing to a 0.8% rise in the FTSE 350 Banks Index.

Asset manager Abrdn led midcap gains, with shares up 4.5% following news of £1.2 billion in net client inflows during the fourth quarter. Premier Foods rose 2.6% after predicting its annual profit would reach the higher end of expectations, buoyed by strong branded product sales. On the downside, Marston’s fell 5.3%, citing slower sales growth due to adverse weather conditions.

In the US, the S&P 500 gained 0.88%, while the Dow Jones Industrial Average rose 1.24% to 44,025.81, and the Nasdaq Composite added 0.64%. Industrial stocks led gains, with 3M climbing 4.2% after posting upbeat fourth-quarter profits. Nuclear power stocks rallied in response to executive orders aimed at boosting energy production, with Constellation Energy, Vistra Corp, and NRG Energy among the top performers.

Apple shares dropped 3.2% after Jefferies downgraded the stock to "underperform." Walgreens tumbled 9.2% after the US Justice Department accused the company of unlawfully filling prescriptions for addictive painkillers. Moderna shares jumped 5.4%, bolstered by $590 million in government funding for its bird flu vaccine development. Meanwhile, automakers gained on trade optimism, with Ford rising 2.5% and General Motors surging 5.7% following a Deutsche Bank rating upgrade.

Small-cap stocks outperformed, with the Russell 2000 advancing 1.85%. Among sectors, energy lagged with a 0.64% decline, while industrials topped gains, up 2.03%.

Forex & Commodities

The US dollar remained near a two-week low, with investors cautious following mixed signals on tariffs from President Trump. The euro eased slightly by 0.2% to $1.0412, retreating from a recent three-week high. The Japanese yen also fell 0.2% to 155.87 per dollar, reflecting some volatility in the currency market. Sterling’s performance was not mentioned, but recent UK data showing a rising jobless rate has pressured the pound.

Gold prices rose 0.4% to $2,756.19 per ounce, reaching a 2-1/2 month high after jumping 1.4% the previous day. The weaker dollar and uncertainty over US trade policies supported the rally in gold, which remains a key safe-haven asset amid geopolitical and economic risks. Meanwhile, spot silver climbed 0.9% to $30.77 per ounce, while palladium and platinum saw marginal gains.

Oil prices slipped as markets digested Trump’s declaration of a national energy emergency and his plans to expand oil and gas production. Brent crude fell 0.5% to $78.93 per barrel, and US West Texas Intermediate crude dropped 0.6% to $75.37. Analysts questioned whether the administration’s promise to refill strategic reserves would significantly impact demand. Production disruptions due to extreme weather in North Dakota cut output by up to 160,000 barrels per day, though the impact on operations in Texas was minimal.