ADDX GO Market Morning Wrap - 18th Feb
Go Wire
February 18, 2025
GoGPT Summarizes Articles
Stock Market
Asian markets saw mixed performance on February 17. Nikkei 225 edged up 0.06% to 39,174.25, while Hang Seng Index remained nearly flat, dipping 0.02% to 22,616.23. STI Index gained 0.71% to 3,904.85, and IDX Composite surged 2.90% to 6,830.88, leading regional gains. Meanwhile, FTSE Bursa KLCI fell 0.56% to 1,582.76. In India, NIFTY 50 rose 0.13% to 22,959.50, and Sensex Index inched up 0.08% to 75,996.86.
U.S. markets were closed for Washington’s Birthday.
Key Events
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On February 17, Elon Musk announced on social media that his company, xAI, is officially launching an AI gaming studio. This marks the concrete realization of the project since Musk first revealed his AI gaming ambitions in November 2024. Additionally, Musk confirmed that the Grok 3 AI model will be released on Monday at 8 PM PT, claiming it to be the "smartest AI on Earth."
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According to Bloomberg, Meta $META is setting up a new team within its Reality Labs hardware division to focus on humanoid robot technology. Instead of directly launching branded robotic products, Meta aims to develop a foundational software platform—similar to Android—for hardware manufacturers. The company plans to hire approximately 100 engineers for this initiative in 2024.
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Reports indicate that TSMC $TSM and Broadcom $AVGO are exploring a potential acquisition of Intel $INTC by splitting its business. Broadcom is reportedly interested in Intel’s chip design and marketing operations, while TSMC could take over the chip foundry segment. However, the discussions are still in early stages, with no final agreement reached. JPMorgan and Morgan Stanley both assess that TSMC’s likelihood of acquiring or operating Intel’s foundries remains low. JPMorgan emphasized TSMC's strong commitment to IP protection, making a partnership with Intel unlikely. Meanwhile, Morgan Stanley highlighted that TSMC had explicitly denied any intention to acquire Intel’s foundries during its 2024 earnings call.
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China hosted a forum for private enterprises to discuss policies for supporting private sector growth amid evolving economic conditions. Attendees included Huawei founder Ren Zhengfei, Alibaba founder Jack Ma, Tencent CEO Pony Ma, Xiaomi CEO Lei Jun, CATL CEO Robin Zeng, and BYD CEO Wang Chuanfu. The meeting signaled China’s strong commitment to encouraging private-sector development. Over the past month, the total market capitalization of China’s onshore and offshore stock markets has increased by over $1.3 trillion, while India’s market cap has shrunk by more than $720 billion. Hedge funds are buying Chinese stocks at the fastest pace in months, and the MSCI China Index is on track to outperform the MSCI India Index for a third consecutive month, marking the longest winning streak in two years.
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Kazakhstan, the world’s largest uranium producer, is gradually reducing its uranium exports to Western countries, leading to a tightening supply. According to the latest projections from the World Nuclear Association, global uranium demand is expected to double by 2040. Without mid-term supply agreements, Western utilities may face increased supply risks, exacerbating uranium market tensions.
Forex
The U.S. Dollar Index gained 0.16% to 106.74.
Key Events
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Federal Reserve Governor Michelle Bowman stated that the current benchmark interest rate is at a "good place" and expects U.S. inflation to decline further this year. However, she warned of "upside risks" to inflation and emphasized the need for greater confidence in disinflation before considering rate cuts. Bowman also criticized U.S. bank regulatory inefficiencies, calling for systemic reforms to enhance transparency and oversight.
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Bank of America strategist Michael Hartnett noted that high inflation could force Donald Trump, if re-elected, to take a restrained approach to tariffs and immigration policies to avoid triggering a second inflationary wave.
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On February 17, Japan’s Cabinet Office reported that the country’s GDP grew at an annualized rate of 2.8% in Q4 2024, significantly surpassing market expectations of 1.1%. Economists now anticipate that the Bank of Japan will move forward with another rate hike by summer.
Cryptocurrency
Bitcoin fell 1.26% to $95,994.07, marking its third decline in the past five sessions.
Key Events
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On February 17, the Hong Kong Securities and Futures Commission (SFC) issued a circular clarifying regulatory requirements to facilitate the listing of closed-end alternative asset funds on the Hong Kong Stock Exchange (HKEX). The SFC emphasized that alternative asset funds are already eligible for listing under existing regulations and welcomed qualified funds to seek a listing in Hong Kong.
Market Events and Most Anticipated Earnings Releases
#Market Morning Wrap#$Meta Platforms Inc. Class A Common Stock(META)#$Taiwan Semiconductor Manufacturing Company Ltd.(TSM)#$Intel Corp(INTC)#$Broadcom Inc. Common Stock(AVGO)