Global Markets Rally Amid AI Spending Concerns and Central Bank Meetings

Global shares rose after tech sector turmoil over AI spending, with investors anticipating divergent central bank policies. Oil prices climbed due to geopolitical tensions, while the Bank of England and European Central Bank's actions influenced currency movements. Oracle's AI project spurred investment anxiety.

Global shares experienced an uptick on Thursday, driven by investor preparations for upcoming central bank meetings, despite concerns about AI-related expenditures within the tech sector. The recent geopolitical climate, notably involving a U.S. blockade on Venezuelan oil tankers, has further impacted commodity markets, prompting a rebound in oil prices from five-year lows.

The Bank of England, facing unexpected UK inflation decreases, is expected to lower rates which influenced sterling's two-day slump. In contrast, the European Central Bank is likely to maintain unchanged rates, while Japan's potential rate hike remains uncertain. Oracle's investment decisions, excluding Blue Owl Capital, led to stock declines, mirroring broader skepticism around AI infrastructure spending.

Federal Reserve activities indicate possible interest rate cuts amidst job market concerns, aligning with President Trump's preference for lower rates. Investors remain attentive to U.S. inflation reporting, despite its reduced impact on interest rate predictions. The geopolitical landscape, exacerbated by possible new Russian sanctions, continues to drive oil prices higher.

(With inputs from agencies.)