Overview
- European markets opened the week on the front foot with the DAX holding above the 25,000 level, but trading turned cautious on Tuesday as investors paused for fresh US bank results and inflation data.
- Brent crude briefly topped $107 per barrel after renewed Huthi attacks on Riyadh’s airport that Saudi authorities say caused deaths and injuries, keeping energy costs and inflation risks elevated.
- Reports of rapid technological progress at Chinese memory maker CXMT triggered a sharp selloff in Asian chip stocks, with big names such as SK Hynix, Samsung and Kioxia posting steep losses and increasing sector downside risk.
- The US quarterly earnings season opened with major banks including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo reporting this week, a set of results that investors view as an early gauge of credit demand and corporate stress.
- Markets are focused on US consumer and producer price reports later this week because stronger inflation readings would push up rate expectations, raise government borrowing costs and further test equity valuations.