The emergence of Chinese AI startup DeepSeek has triggered a reevaluation of tech stock valuations, leading to a significant selloff in Nasdaq futures and European tech stocks. This shift in sentiment has prompted investors to seek refuge in safe-haven assets, with the Japanese yen and Swiss franc gaining ground. The yen rose 1.3% against the US dollar, while the Swiss franc climbed 0.6%. Meanwhile, US 10-year Treasury yields fell by 9 basis points to 4.53% as global government bonds rallied.
Amidst this backdrop of heightened market volatility, oil prices have advanced, with West Texas Intermediate (WTI) crude rising 0.4% to $75 a barrel. This increase is seen as a hedge against geopolitical risks, providing some stability in an otherwise uncertain market environment. In contrast, gold prices have decreased by $6 to $2,765 per ounce, as investors favor currency-based safe havens over traditional ones like gold. Bitcoin, known for its volatility, has also seen a decline, falling 5% to below $100,000.
As of 05:41 on January 27, the price of Brent crude oil (CO1) stands at $77.92, up from its last close of $77.55. This movement reflects the broader trend of rising oil prices amidst global market uncertainties and geopolitical tensions.