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Stock markets in Asia and Europe reached record highs Wednesday while Wall Street indices continued to advance on easing worries about the AI sector and ahead of chip behemoth Nvidia releasing its earnings.Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates.In New York, the tech-centered Nasdaq again led the way, rising 1.3 percent. Global equities gained “as the apocalyptic AI narrative takes a small step back”, noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.Investors have adopted a more sanguine view following a presentation by AI company Anthropic that emphasized the compatibility of its technology with existing programs.Hopes are also elevated ahead of an earnings report from Nvidia later Wednesday.”People are speculating that likely they’ll (Nvidia) have good things to say,” said Briefing.com analyst Patrick O’Hare, who also attributed the rise to investor bargain hunting after earlier declines.A surge in shares in big tech firms deploying AI helped drive equity markets to record highs last year. Investors have sometimes been seized in recent months by concern that share prices have become over-valued and that the technology might not become profitable, however.Other declines have been driven by concerns that the technology will disrupt other businesses.Such worries were sparked by a weekend report by Citrini Research that said certain sectors, from financial to food delivery firms, could be at risk from new AI tools.- Asia high -Earlier, Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.In Europe, shares in HSBC jumped 6.7 percent after the global bank posted better-than-expected 2025 earnings.Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi had told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.Oil prices edged higher ahead of a third round of talks between Iran and Washington in Geneva on Iran’s nuclear program.In his State of the Union address on Tuesday, US President Donald Trump accused Tehran of “sinister nuclear ambitions” after he ordered a massive military deployment around the Gulf.- Key figures at around 2115 GMT -New York – Dow: UP 0.6 percent at 49,482.15 (close)New York – S&P 500: UP 0.8 percent at 6,946.13 (close)New York – Nasdaq Composite: UP 1.3 percent at 23,152.08 (close)London – FTSE 100: UP 1.2 percent at 10,806.41 (close)Paris – CAC 40: UP 0.5 percent at 8,559.07 (close)Frankfurt – DAX: UP 0.8 percent at 25,175.94 (close)Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)Dollar/yen: UP at 156.46 yen from 155.87 yen on TuesdayEuro/dollar: UP at $1.1805 at $1.1772Pound/dollar: UP at $1.3554 from $1.3489Euro/pound: DOWN at 87.10 pence from 87.26 penceBrent North Sea Crude: UP 0.1 percent at $70.85 per barrelWest Texas Intermediate: UP 0.3 percent at $65.42 per barrelburs-jmb/dw

Hong Kong’s finance chief tipped another year of economic growth in 2026 as he unveiled his annual budget on Wednesday with plans for investment in innovation zones and AI training.The Chinese finance hub’s “buoyant” economy expanded a forecast-beating 3.5 percent last year thanks to healthy exports and a rebound in private consumption, Financial Secretary Paul Chan told lawmakers.He said that thanks to steady growth in domestic demand, “we forecast that Hong Kong’s economy will grow by 2.5 percent to 3.5 percent this year”.”A stable labour market and rising household incomes will drive private consumption, while improvement in business sentiment, coupled with expectations of interest rate cuts, will boost asset markets and investments,” he said.The government has invested heavily in recent years in the “Northern Metropolis”, a vision for developing rural land bordering mainland China into a cutting-edge tech and innovation hub.Chan said officials will seek lawmakers’ approval to inject a total of US$3.83 billion to attract businesses and speed up development in three zones, including the San Tin Technopole.He also earmarked US$6.39 million for classes and competitions to “popularise the understanding and use of AI by all levels of society”.Hong Kong’s economy will grow an average of three percent annually in real terms from 2027 to 2030, the finance chief said.”The rise of the ‘Global South’ and the reshaping of the global trade and investment landscape will unlock new markets and new growth areas for Hong Kong” despite protectionism and fragmentation, he added.The city has seen four massive annual deficits since Covid struck in 2020, resulting in the worst balance sheet since the former British colony was handed over to China in 1997.In 2025-26, government revenues were lifted by a “buoyant equity market” and accelerated growth, which led to a consolidated surplus of US$371 million instead of a predicted deficit, according to Chan.That number included proceeds from selling bonds, which the government would need to repay.Excluding bond sale proceeds, the Hong Kong government reported a deficit of US$12.8 billion in 2025-26, down from a deficit of US$24.1 billion the year before.- ‘Future needs’ -Wednesday’s budget also proposed withdrawing US$19 billion from Hong Kong’s Exchange Fund, which if approved would be the first such move since 1984.Chan told a news conference that the decision was made “after considering the purpose, scale of the Exchange Fund and our future needs”, with the money going toward the Northern Metropolis and other infrastructure projects.The fund is a backstop for the Hong Kong dollar’s currency peg to the greenback.The Hong Kong Monetary Authority said that the fund still had sizable surplus and foreign currency reserves, and “serves as a solid bedrock for the Linked Exchange Rate System and financial stability of Hong Kong”.Chan also earmarked US$510 million for long-term housing arrangements for people displaced in a deadly housing estate fire last year.The Society for Community Organization, a grassroots advocacy group, said the budget was lacking in welfare spending despite an uptick in government revenue.Asked about “sweetener” measures, finance chief Chan told reporters that his budget included bigger tax breaks this year compared to 2025.

China will buy up to 120 aircraft from European aviation giant Airbus, German Chancellor Friedrich Merz said following talks with President Xi Jinping in Beijing on Wednesday.Merz’s visit comes as Berlin and Beijing seek to build on their decades-old economic ties to weather global uncertainty sparked by US President Donald Trump’s tariff blitz and other erratic foreign policy moves.China, the world’s number two economy, overtook the United States last year to become Germany’s biggest trade partner. At the same time, Berlin regards the Communist Party-run state as a systemic rival to the West.Following talks with top Chinese leaders, Merz told reporters that China had agreed to purchase “up to 120” Airbus aircraft, adding that it “demonstrates how worthwhile such trips can be”.Other contracts were in the pipeline, Merz added.Earlier in the day, Merz and Xi stressed their commitment to developing closer strategic relations, with the German leader saying he saw the trip as a “great opportunity” to boost economic ties.Xi, in turn, told Merz he was willing to take their ties to “new levels”.Merz said that in his meetings he also touched on the sensitive topic Taiwan, the self-ruled island China claims as part of its territory and which it has not ruled out the use of force to annex.Any “reunification” must be done peacefully, Merz said.He also discussed the Ukraine war with Xi, who according to state news agency Xinhua said diplomacy was “key to the issue”.”Xi noted the necessity of ensuring the equal participation of all parties to lay a solid foundation for peace, (and) addressing the legitimate concerns of all sides to strengthen the will for peace,” Xinhua added.Merz is the latest in a string of Western leaders courting Beijing recently, including Britain’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, as they recoil from the mercurial policies of Trump, who is also expected to visit from March 31.Merz said he wished for regular consultations between his government and Beijing — interrupted by political developments in Berlin and the pandemic — to resume “very soon”.- ‘Fair’ cooperation -Export-dependent Germany needs “economic relations all over the world”, Merz said before leaving for Beijing with a large business delegation in tow.At a meeting with Premier Li Qiang in Beijing’s opulent Great Hall of the People, Merz called for “fair” cooperation, and representatives from both sides signed agreements and memorandums — including on climate change and food security.In an apparent allusion to the United States, Li noted that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions”.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric-car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.- Cars, AI and competition -As Trump has unsettled allies and rivals alike, China has sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat, Wang Yi, told Merz at the Munich Security Conference this month that Beijing wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.Merz is joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.On Thursday, he is set to visit Beijing’s Forbidden City, then a Mercedes plant where autonomous driving vehicles will be presented.The chancellor will then travel to AI hub Hangzhou to visit the robotics group Unitree and German turbine maker Siemens Energy.German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

Stock markets in Asia and Europe reached record highs Wednesday on easing worries about the AI sector which many see as overvalued and a threat to several industries.Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates.Global equities gained “as the apocalyptic AI narrative takes a small step back”, noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.Tech shares jumped having rebounded Tuesday on Wall Street.Investors adopted a more sanguine view following a presentation by AI company Anthropic that emphasised the compatibility of its technology with existing programs.A weekend report by Citrini Research showed how certain sectors, from financial to food delivery firms, could be at risk from new AI tools.Focus later Wednesday will be on the release of earnings from chip behemoth Nvidia, with analysts saying they could have an outsized impact on markets.”Put simply, meeting earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders’ fears that demand for AI (capital expenditure) may be downshifting,” warned City Index analyst Matt Weller. A rally on Wall Street’s three main bourses provided a healthy lead for equities across Asia, which has enjoyed a lift from the US Supreme Court’s ruling against a swath of President Donald Trump’s tariffs.Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.In Europe, shares in HSBC jumped six percent nearing midday after the global bank posted better-than-expected 2025 earnings.Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.Oil prices rose as Iran dismissed US claims about its missile programme as “big lies”, after Trump said Tehran was developing missiles that could strike the United States.In his State of the Union address Tuesday, Trump accused Tehran of “sinister nuclear ambitions” as Washington ups the pressure with a massive military deployment around the Gulf. The two foes are scheduled to meet for a third round of talks on Thursday in the Swiss city of Geneva in an effort to reach a diplomatic solution.- Key figures at around 1130 GMT -London – FTSE 100: UP 1.0 percent at 10,784.90 pointsParis – CAC 40: UP 0.3 percent at 8,543.95Frankfurt – DAX: UP 0.4 percent at 25,085.10Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)New York – Dow: UP 0.8 percent at 49,174.50 (close)Dollar/yen: UP at 156.77 yen from 155.74 yen on TuesdayEuro/dollar: DOWN at $1.1772 from $1.1783Pound/dollar: DOWN at $1.3496 from $1.3508Euro/pound: UP at 87.26 pence from 87.23 penceBrent North Sea Crude: UP 0.5 percent at $70.92 per barrelWest Texas Intermediate: UP 0.4 percent at $65.87 per barrel

German Chancellor Friedrich Merz met with Chinese leader Xi Jinping in Beijing on Wednesday, hoping to bolster ties with his country’s largest trade partner and high-tech rival as Europe’s biggest economy struggles.Berlin and Beijing want to build on their decades-old economic ties at a time when US President Donald Trump has sparked global chaos with his tariffs blitz and other erratic foreign policy moves.China, the world’s number two economy, overtook the United States last year to become Germany’s biggest trade partner, but Berlin also regards the Communist Party-run state as a systemic rival to the West.The two leaders reaffirmed their commitment to developing closer strategic relations, with Merz saying he saw the trip as a “great opportunity” to boost economic ties.Xi, in turn, told Merz he was willing to take their ties to “new levels”, stressing that he “always attached great importance to Sino-German relations”.Merz also noted that he wished for joint consultations between their two governments, which had been interrupted by a change in Germany’s government and the pandemic, to resume “very soon”.But he is also expected to stress German and European interests during his talks with Xi, and urge him to put pressure on China’s ally Russia to end the war in Ukraine.Merz is the latest in a string of Western leaders courting Beijing in recent months, including Britain’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, as they recoil from the mercurial policies of Trump, who is also expected from March 31.- Large business delegation -Export-dependent Germany needs “economic relations all over the world”, Merz said before leaving for Beijing with a large business delegation in tow.”But we should be under no illusions,” he added, pointing out that China, as a rival to the United States, now “claims the right to define a new multilateral order according to its own rules”.Merz earlier met with Premier Li Qiang in Beijing’s opulent Great Hall of the People, where he called for “fair” cooperation, and representatives from both sides signed agreements and memorandums — including on climate change and food security.In an apparent allusion to the United States, Li noted that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions”.”Against such a backdrop, China and Germany, as two major economies in the world with significant influence, should… jointly safeguard multilateralism and free trade,” Li said.China under Xi has grown far more assertive on the world stage, built up its military, stressed its claim to self-ruled Taiwan, and pushed back strongly against criticism of its human rights record.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric-car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.- ‘Systemic competition’ -As Trump has unsettled allies and rivals alike, China has nonetheless also sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat, Wang Yi, told Merz at the Munich Security Conference this month that Beijing hoped to bring ties “to a new level” and wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.Merz, like his predecessors Angela Merkel and Olaf Scholz, is joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.On Thursday, Merz is to visit Beijing’s Forbidden City, then a Mercedes plant where autonomous driving vehicles will be presented.The chancellor then travels to AI hub Hangzhou to visit the robotics group Unitree and German turbine maker Siemens Energy.German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.German and European companies in China are not only “competing with highly innovative Chinese firms” but are also players in a “state-driven systemic competition”.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

Stock markets in Seoul and Tokyo surged to record highs as tech firms led an Asia-wide rally Wednesday following a rebound in their counterparts on Wall Street.Investors built on a broadly healthy week in the region as they piled onto the artificial intelligence bandwagon amid a shift from New York, where there is growing concern about elevated valuations as well as US political and economic uncertainty.They were also keeping an eye on President Donald Trump’s State of the Union address, which comes after his tariff policy was dealt a body blow by the Supreme Court on Friday and as he considers strikes on Iran.Wall Street’s tech titans including Magnificent Seven stalwarts have struggled in 2026 to match the past two years’ eye-watering performance, with questions being asked about the vast sums they have invested in AI and when they will see returns.Fresh worries about the recent release of tools that could hammer software firms have compounded the problems.The latest blow came from a report Sunday by Citrini Research that used possible scenarios set in the future showing parts of the global economy that could be at risk from new tools, such as credit card and food delivery firms.But a presentation by AI company Anthropic emphasising the compatibility of its technology with existing programmes tempered some fears, analysts said.An announcement that Facebook parent Meta had reached an agreement to buy millions of chips from processor-maker AMD also lifted optimism.Focus is now on the release of earnings from chip behemoth Nvidia later in the day, with analysts saying they could have an outsized impact on markets.But Matt Weller at City Index warned: “Put simply, ‘meeting’ earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders’ fears that demand for AI (capital expenditure) may be downshifting.”A rally on all three main bourses on Wall Street provided a healthy lead for Asia, which has also enjoyed a lift from the Supreme Court’s tariff announcement.Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than one percent to also hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.Taipei’s two percent gains were supported by Taiwan Semiconductor Manufacturing Company.Hong Kong, Shanghai, Sydney, Mumbai and Bangkok were also higher, though Singapore, Wellington and Jakarta slipped.London, Paris and Frankfurt were also in the red.The yen was steady against the dollar after sinking Tuesday on media reports that Japanese Prime Minister Sanae Takaichi last week told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.The Mainichi newspaper said she had taken a “tougher stance” than in their November meeting.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)London – FTSE 100: UP 0.7 percent at 10,760.07 Dollar/yen: UP at 156.00 yen from 155.74 yen on TuesdayEuro/dollar: UP at $1.1796 from $1.1783Pound/dollar: UP at $1.3520 from $1.3508Euro/pound: UP at 87.25 pence from 87.23 penceWest Texas Intermediate: UP 0.4 percent at $65.87 per barrelBrent North Sea Crude: UP 0.3 percent at $70.99 per barrelNew York – Dow: UP 0.8 percent at 49,174.50 (close)

German Chancellor Friedrich Merz touched down in China on Wednesday, beginning his inaugural visit to his country’s largest trade partner and a high-tech rival as Europe’s biggest economy struggles.Berlin and Beijing want to build on their decades-old economic ties at a time when US President Donald Trump has sparked global chaos with his tariffs blitz and other erratic foreign policy moves.But Merz is also expected to stress German and European interests in his talks on Wednesday with President Xi Jinping, including by urging him to put pressure on China’s ally Russia to end the war in Ukraine.China, the world’s number two economy, overtook the United States last year to become Germany’s biggest trade partner, but Berlin also regards the Communist Party-run state as a systemic rival to the West.Merz is the latest in a string of Western leaders courting Beijing in recent months, including Britain’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, as they recoil from the mercurial policies of Trump, who is also expected from March 31.Merz said on Friday he was going to Beijing, with a large business delegation in tow, in part because export-dependent Germany needs “economic relations all over the world”.”But we should be under no illusions,” he added, pointing out that China, as a rival to the United States, now “claims the right to define a new multilateral order according to its own rules”.Soon after landing, Merz met with Premier Li Qiang in Beijing’s opulent Great Hall of the People, where representatives from both sides signed agreements and memorandums including on climate change and food security.Merz stressed the importance of deepening relations, but added “we have very specific concerns regarding our cooperation, which we want to improve and make fair”.In an apparent allusion to the United States, Li noted that “unilateralism and protectionism have gained ground, and even become prevalent, in some countries and regions”.”Against such a backdrop, China and Germany, as two major economies in the world with significant influence, should… jointly safeguard multilateralism and free trade,” Li said.China under Xi has grown far more assertive on the world stage, built up its military, stressed its claim to self-ruled Taiwan, and pushed back strongly against criticism of its human rights record.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric-car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.- ‘Systemic competition’ -As Trump has unsettled allies and rivals alike, China has nonetheless also sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat Wang Yi told Merz at the Munich Security Conference this month that Beijing hoped to bring ties “to a new level” and wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.Merz, like his predecessors Angela Merkel and Olaf Scholz, is joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.On Thursday, Merz is to visit Beijing’s Forbidden City, then a Mercedes plant where autonomous driving vehicles will be presented.The chancellor then travels to AI hub Hangzhou to visit the robotics group Unitree and German turbine maker Siemens Energy.German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.German and European companies in China are not only “competing with highly innovative Chinese firms” but are also players in a “state-driven systemic competition”.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

Tech shares bounced on Tuesday following the prior session’s selloff as markets weigh the impact of artificial intelligence on incumbent technology companies while navigating tariff uncertainty.After losing more than one percent Monday, major US indices began tentatively Tuesday before catching their stride later in the morning. The tech-rich Nasdaq led Wall Street indices with a one-percent gain, while the Dow and S&P 500 also finished solidly higher.”Today tech is really catching a break from the AI disruption narrative,” said Angelo Kourkafas of Edward Jones, who also pointed to a big Meta deal secured by semiconductor company AMD.”Both of these developments and news headlines on the tech space are helping recover some of yesterday’s losses,” Kourkafas said.In Europe, both London and Frankfurt closed flat, while Paris rose. Asian stock markets traded mixed.Besides AI, markets have been assimilating the after-effects of the Supreme Court’s move last week to strike down many of US President Donald Trump’s tariffs. Right after the ruling, Trump announced new levies at 10 percent, under a different legal authority. Trump has vowed to raise this level to 15 percent, with exclusions expected to remain for goods covered by sector-specific arrangements and the US-Mexico-Canada trade pact.However, the move has raised questions about other trade deals Washington has agreed since Trump’s tariff blitz in April, with the European Union demanding clarity on the issue before ratifying its agreement with the United States.Trump is scheduled to address Congress in the annual State of the Union speech Tuesday night that will likely include discussion of tariffs and other economic issues.The market’s Jekyll-and-Hyde attitude towards AI shifted on Tuesday after an announcement that tech giant Meta had reached an agreement to purchase millions of chips from processor manufacturer AMD, in which it could become a shareholder.Shares in AMD jumped 8.8 percent, while Meta rose 0.3 percent.Sentiment had been dampened by renewed concerns about the impact of artificial intelligence on the tech sector, with software firms again in the firing line.The latest blow came from a report Sunday by Citrini Research that used possible scenarios set in the future showing parts of the global economy that could be at risk from new tools, such as credit card and food delivery firms.But investors adopted a more sanguine view of the situation Tuesday following a presentation by AI company Anthropic that emphasized the compatibility of its technology with existing programs, analysts said.”The reality is that these new AI tools will not rip and replace existing software ecosystems and data environments,” said a note from Wedbush Securities, noting that the tools were only as useful as the data they could use.”AI is more likely to drive a modernization cycle than bypass the installed base.”Shares in Danish drugmaker Novo Nordisk, which is struggling with competition for its anti-obesity treatments, fell 3.1 percent after it announced it would sharply cut prices for its flagship drugs in the US, announcing a 50-percent cut for Wegovy and 35 percent for Ozempic.- Key figures at around 2115 GMT -New York – Dow: UP 0.8 percent at 49,174.50 (close)New York – S&P 500: UP 0.8 percent at 6,890.07 (close)New York – Nasdaq Composite: UP 1.0 percent at 22,863.68 (close)London – FTSE 100: FLAT at 10,680.59 (close)Paris – CAC 40: UP 0.3 percent at 8,519.21 (close)Frankfurt – DAX: FLAT at 24,986.25 (close)Tokyo – Nikkei 225: UP 0.9 percent at 57,321.09 (close)Hong Kong – Hang Seng Index: DOWN 1.8 percent at 26,590.32 (close)Shanghai – Composite: UP 0.9 percent at 4,117.41 (close)Euro/dollar: DOWN at $1.1783 from $1.1785 on MondayPound/dollar: UP at $1.3508 from $1.3492Euro/pound: DOWN at 87.23 pence from 87.34 penceDollar/yen: UP at 155.74 yen from 154.65 yenBrent North Sea Crude: DOWN 1.0 percent at $70.77 per barrelWest Texas Intermediate: DOWN 1.0 percent at $65.63 per barrelburs-jmb/aha

German Chancellor Friedrich Merz left Tuesday for his inaugural visit to China, long a huge market for German goods but now a high-tech rival as Europe’s biggest economy struggles.Berlin and Beijing want to build on their decades-old economic ties at a time US President Donald Trump has sparked global chaos with his tariffs blitz and other erratic foreign policy moves.But Merz is also expected to stress German and European interests in his talks Wednesday with President Xi Jinping, including by urging him to put pressure on its ally Russia to end the war in Ukraine.Germany considers China, the world’s number two economy, as a key trade and investment partner — but also regards the communist one-party state as a systemic rival to the West.Many commentators have taken note of the fact that Merz first travelled to India, the world’s largest democracy, weeks before he headed to China.Merz said Friday he was going to Beijing, with a large business delegation in tow, in part because export-dependent Germany needs “economic relations all over the world”.”But we should be under no illusions,” he added, pointing out that China as a rival to the United States now “claims the right to define a new multilateral order according to its own rules”.China under Xi has grown far more assertive on the world stage, built up its military, stressed its claim on Taiwan, and pushed back strongly against criticism of its human rights record.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.”China has risen to the ranks of the major powers,” Merz said just before leaving Berlin Tuesday, stressing that “we want a partnership with China that is balanced, reliable, regulated and fair”.- ‘Systemic competition’ -As Trump has unsettled allies and rivals alike, China has nonetheless also sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat Wang Yi told Merz at the Munich Security Conference this month that Beijing hoped to bring ties “to a new level” and wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.As other nations also seek to rebalance their economic relations, the leaders of France, Britain and Canada all recently visited China, where Trump is expected from March 31.Merz, like his predecessors Angela Merkel and Olaf Scholz, will be joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.In Beijing, Merz will first meet Prime Minister Li Qiang, then have talks and dinner with Xi.On Thursday, Merz is to visit Beijing’s Forbidden City, then a Mercedes plant where autonomously driving vehicles will be presented. The chancellor then travels to Hangzhou, often called China’s “Silicon Valley,” to visit the robotics group Unitree and German turbine maker Siemens Energy. German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.German and European companies in China are not only “competing with highly innovative Chinese firms” but are also players in a “state-driven systemic competition”.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

US stocks bounced higher as investors recovered from a fresh bout of angst over AI and new US tariffs.”Most global stock indices recovered despite mixed economic data,” said IG analyst Axel Rudolph. He pointed to better-than-expected US consumer confidence data and private sector job growth, while UK retail sales fell as did European car sales.Wall Street’s main indices shed more than one percent on Monday as the market “went through another disruption trade that was a three-headed monster of tariffs, AI displacement, and private credit concerns”, said market analyst Patrick O’Hare.While dipping further at the open, they soon recovered and pushed higher.The market’s Jekyll-and-Hyde attitude towards AI shifted on Tuesday after an announcement that tech giant Meta had reached an agreement to purchase millions of chips from processor manufacturer AMD, in which it could become a shareholder.Shares in AMD jumped 6.8 percent as trading got under way, while shares in Meta were flat.Nevertheless, “investors are wary as they brace for further volatility sparked by unpredictable US trade policy and the fallout from AI advances,” said Susannah Streeter, chief investment strategist at Wealth Club. Sentiment had been dampened by renewed concerns about the impact of artificial intelligence on the tech sector, with software firms again in the firing line.The latest blow came from a report Sunday by a firm called Citrini Research that used possible scenarios set in the future showing parts of the global economy that could be at risk from new tools, such as credit card and food delivery firms.Adding to the downbeat mood was a post by Anthropic saying its Claude chatbot could help to update the COBOL programming language used on IBM computers. IBM fell more than 13 percent in New York on Monday.”Traders are concerned with the degree to which AI will disrupt rather than enhance corporate profitability and overall levels of employment,” said Joshua Mahony, chief market analyst at Scope Markets. The releases come after Anthropic earlier this month unveiled a model that could replace numerous software tools, including for legal work and data marketing.Markets have largely taken in stride the US Supreme Court’s decision to strike down much of President Donald Trump’s tariff policy and his subsequent move to impose tariffs, initially set at 10 percent, under a different legal authority.Trump has vowed to raise this level to 15 percent, with exclusions expected to remain for goods covered by sector-specific arrangements and the US-Mexico-Canada trade pact.However, the move has raised questions about other trade deals Washington has agreed since Trump’s tariff blitz in April, with the European Union demanding clarity on the issue before ratifying its agreement with the US.Observers said 2026 could see more tariff-based friction but they did not expect it to be as painful for markets as last year’s upheaval.In Europe both London and Frankfurt closed flat, while Paris rose.Asia markets traded mixed.Shares in Danish drugmaker Novo Nordisk, which is struggling with competition for its anti-obesity treatments, fell 3.1 percent after it announced it will sharply cut prices for its flagship drugs in the US, announcing a 50 percent cut for Wegovy and 35 percent for Ozempic.- Key figures at around 1630 GMT -New York – Dow: UP 0.7 percent at 49,121.99 pointsNew York – S&P 500: UP 0.5 percent at 6,870.98New York – Nasdaq Composite: UP 0.8 percent at 22,805.47London – FTSE 100: FLAT at 10,680.59 (close)Paris – CAC 40: UP 0.3 percent at 8,524.02 (close)Frankfurt – DAX: FLAT at 24,986.25 (close)Tokyo – Nikkei 225: UP 0.9 percent at 57,321.09 (close)Hong Kong – Hang Seng Index: DOWN 1.8 percent at 26,590.32 (close)Shanghai – Composite: UP 0.9 percent at 4,117.41 (close)Euro/dollar: DOWN at $1.1789 from $1.1792 on MondayPound/dollar: UP at $1.3534 from $1.3492Euro/pound: DOWN at 87.11 pence from 87.40 penceDollar/yen: UP at 155.71 yen from 154.68 yenBrent North Sea Crude: DOWN 0.1 percent at $71.04 per barrelWest Texas Intermediate: UP 0.3 percent at $66.13 per barrelburs-rl/cw