Global Markets Stir Amid AI Spending Concerns and Monetary Policy Shifts

Asian shares dipped as the tech sector faced pressure due to anxiety over AI spending. Central bank meetings globally are creating policy divergence, with expected rate cuts from the Bank of England and potential hikes in Japan. Commodities fluctuated amid geopolitical tensions and U.S. sanctions announcements.

Asian stocks declined on Thursday as the technology sector encountered renewed concerns over AI expenditures. Investors are preparing for a series of central bank meetings that are anticipated to highlight global policy discrepancies. Tensions are also affecting commodity markets, pushing oil prices upward and driving fluctuations in precious metals.

The UK saw a surprise drop in inflation, almost ensuring a rate cut from the Bank of England. Meanwhile, European banks like the ECB and Riksbank are expected to maintain their current rates, while traders in Japan anticipate a rate hike despite uncertainties around future tightening measures.

Wall Street responded to tech sector worries, with Nasdaq and S&P 500 futures showing slight gains. Investor confidence in major firms like Oracle has been shaken due to AI infrastructure concerns and financial challenges. Meanwhile, geopolitical events surrounding oil exports continue to impact prices, reflecting broader global uncertainties.

(With inputs from agencies.)