Markets on Edge: Uncertainties Loom Over Global Trades

Global markets remain tense with uncertainties in US-China trade talks and effects of AI chip sales taxes. Economic indicators from the US could push consumer prices higher, challenging the Federal Reserve’s rate plans. Meanwhile, oil prices dip amid doubts over US-Russia talks on Ukraine.

Global markets started the week quietly as Japan observed a holiday and President Trump relaxed on the golf course. Despite the lull, Nikkei futures trading in Chicago neared record highs, hinting at a potential milestone for the cash index.

Attention turns to AI chip makers Nvidia and AMD, who struck a contentious deal to hand over 15% of their revenue from sales to China in exchange for US export licenses. This agreement raises questions over its implications and administration, especially since the US initially blocked such sales due to national security concerns.

On the economic front, US consumer prices, influenced by tariffs, are expected to rise, posing a challenge to the Federal Reserve's interest rate targets. Meanwhile, uncertainties loom over the US-China trade deal deadline and US-Russia talks on Ukraine, affecting oil prices and market stability.

(With inputs from agencies.)