DAX APPLE Microsoft and AI

Hi traders and those that want to become one.

We slipped into Thursday already. I have some interesting market bites of information to finish of the day.

Europe/UK

Today BoE left rates unchanged but appear to become more willing to cut rates sooner than later. More voted for a rate cut than at the last meeting, giving hope that a cut might come this year.

GBP/USD is stuck within thin range around 1.2500.

In Europe, the DAX (+0.9%) hits a new record high! See the following chart, Covered yesterday in my analysis the DAX hit the level determined and appears to be continuing with strength into the end of the week, currently we are finding ourselves at a level of support, with the MACD pointing upwards and the Stochastic RSI in overbought territory. If the buying continues into Friday as shown in the Stochastic RSI then the next important level is the psychological level of 18,700.

USA

Americas US jobless claims jumped and gave fresh evidence of a cooling US labour market. As a result Gold was up +0.85% and silver +2.1%. This might be evidence that the rates are doing what they are supposed to. I am longing to see further announcements soon. DOW hits sixth straight green trading day, the longest winning streak of the year.

FTX’s customers are getting their money back—plus interest. This comes as investigations found enough money to pay back customers, however investors might be left out.

In energies and as a positive for the climate, a record-breaking 30% of the world’s electricity was produced by renewables last year as wind and solar power got more popular.

Important for EV manufacturers. The US Commerce Secretary Raimondo said the US could ban Chinese-connected vehicles or impose restrictions. On a separate occasion it was also reported that US Senator Brown is seeking an entire US ban on all Chinese internet-connected vehicles, acco Chinese rding to Bloomberg.

International

USD/JPY briefly retreated after the BoJ SOO suggested an openness to future hikes, although the move was quickly reversed.

Ukraine drone attack sparked a fire and damaged oil tanks at a refinery in Russia's Krasnodar, according to regional officials.

Company News

Uber profits hit the brakes. The company reported a surprise loss for the first quarter of 2024. Lyft on the other hand step on the gas. In a separate incident, Instacart and Uber—grocery delivery rivals—announced Tuesday that they are partnering to better compete with DoorDash.

Apple unveiled new iPad models for the first time since 2022. Featuring a new M chip with you guessed it, AI features.

Microsoft announce $100 billion data-center project.

My view

I feel we have another trend coming in AI Yes, it all started since last year with Semiconductor companies now trading double to last year. But currently the news are increasingly pushing out coverage of AI, generative AI, AI generated drugs, AI generated materials. Free thinking robots, Swarm robots. And there is a lot of Hype involved.

Google raised the stakes yesterday when its DeepMind AI research laboratory, in partnership with Isomorphic Labs, released AlphaFold 3, an AI model that “predicts the structure and interactions of all of life’s molecules.” This might come positively for drug innovations where humans don’t have the necessary processing power just yet. This is the early stages but AI is definitely evolving at an ever more constant rate.

Have a good day everyone,

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