Weekly Top of Mind

• Markets oscillate between AI optimism and rising rates paranoia; Amid elevated tech volatility, advocate barbell approach complementing AI stocks with low volatility plays.
• Gold and base metals on divergent paths; Fed tightening concerns and easing geopolitical tension driving gold price lower, while positive demand-supply dynamics buoying base metal prices.
• US CPI took some heat off the Fed rate hike expectations and USD; Fundamental landscape is unchanged and remains favourable to the USD for now.
• China’s RMB2tn five-year national investment plan marks one of the boldest state pushes for AI development, indicating a shift in emphasis from AI modelling towards AI infrastructure buildout.
• Blockbuster IPOs’ drain in liquidity is more imposing on paper than in proportion at a mere 0.3% of Russell 3000’s market cap; Supply is well within the absorptive capacity of the world’s deepest equity pool.

Source: CNITSEC & National Science and Tech Evaluation Center, Bloomberg, DBS


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