Central Banks and Federal Reserve - A group of central banks expressed support for Fed Chair Jerome Powell, emphasizing the importance of central bank independence for economic stability [1] Trade and Tariffs - President Trump announced a 25% tariff on trade with any country doing business with Iran, impacting U.S. trade relations [2] Interest Rates and Economic Outlook - New York Fed President John Williams stated that interest rates are well-positioned to stabilize the labor market and achieve the Fed's 2% inflation target, highlighting the benefits of the Fed's independence [3] - Market expectations indicate a 95% chance of no rate change and a 5% chance of a 25 basis point rate cut at the January FOMC meeting [2] Stock Market Performance - Wall Street's main stock indexes closed higher, with the S&P 500 reaching a new record high, driven by gains in data storage companies like Western Digital and Seagate Technology [4] - Walmart's stock rose 3% after being announced as a new addition to the Nasdaq 100 Index [4] - Credit card companies and bank stocks declined following Trump's proposal for a cap on credit card interest rates [4] Earnings Reports and Market Reactions - JPMorgan Chase reported better-than-expected Q4 results, leading to a 0.5% rise in its stock during pre-market trading [16] - Intel and Advanced Micro Devices saw stock increases after being upgraded by KeyBanc [17] Inflation Data and Economic Indicators - The U.S. consumer inflation report is anticipated to show a December CPI of 2.7% year-over-year, unchanged from November, with core CPI expected to rise slightly to 2.7% [6] - New Home Sales data for October is expected to show sales of 716K, incorporating previously delayed September figures [8] International Market Trends - Asian stock markets showed mixed results, with Japan's Nikkei 225 Index closing sharply higher amid speculation of a snap election [11][13] - China's Shanghai Composite Index retreated from a 10-year high, with significant turnover indicating potential market overheating [12]

Market Overview - World shares exhibited mixed performance with U.S. futures declining slightly ahead of the U.S. consumer price update [1] - In early European trading, the FTSE 100 rose less than 1% while Germany's DAX and France's CAC 40 fell by 0.2% and 0.5% respectively [2] Inflation and Consumer Prices - U.S. consumer prices are expected to have risen by 2.6% in December compared to the previous year, according to economists' estimates [2] - Inflation pressures are likely to remain high due to increased costs in electricity, groceries, and clothing [3] Regional Market Performance - Asian shares mostly gained, with Japan's Nikkei 225 surging 3.1% to a record close of 53,549.16, driven by technology-related stocks [3] - Hong Kong's Hang Seng index advanced 0.9% to 26,848.47, while shares of GigaDevice Semiconductor jumped 54% in its trading debut [5] - South Korea's Kospi closed 1.5% higher at a record 4,692.64, and Australia's S&P/ASX 200 gained nearly 0.6% [5] U.S. Federal Reserve and Interest Rates - Concerns over the Federal Reserve's independence in setting interest rates were somewhat mitigated by investor expectations of potential rate cuts [6] - Tensions between President Trump and Fed Chair Jerome Powell escalated following a subpoena from the Department of Justice regarding Powell's testimony [7] - Trump has advocated for further interest rate cuts, which could benefit stock prices by lowering borrowing costs [8] Company-Specific Developments - Alphabet, Google's parent company, saw a 1% increase in market value, surpassing $4 trillion, following a deal with Apple to enhance Siri using Google's technology [8] - Credit card companies faced losses after Trump proposed a cap on credit card interest rates, impacting their profit margins [9]

Jan 2 (Reuters) - Chinese internet search giant Baidu (BIDU) said on Friday its AI chip unit Kunlunxin has confidentially filed ​a listing application with the Hong Kong stock exchange on ‌January 1, paving the way for a spin-off and separate listing. Baidu's US shares rose 9% before the bell on Friday following the news. Reuters had earlier reported ‌that Kunlunxin was planning for a Hong Kong initial public offering after completing a fundraising that valued it at 21 billion yuan ($3 billion). China ...

Core Insights - Chinese artificial intelligence and semiconductor companies are increasingly turning to Hong Kong for fundraising, following successful onshore debuts of GPU developers [1][5] Group 1: Market Trends - GigaDevice Semiconductor is closer to its Hong Kong IPO after passing a listing hearing, with plans to reactivate its application [2] - Companies like MiniMax and Zhipu AI, referred to as the "new AI tigers of China," are joining the fundraising rush alongside Montage Technology and others [3] Group 2: Fundraising Goals - GigaDevice and Montage aim to raise up to US$1 billion from their Hong Kong listings as early as January [5] - Biren Technology is seeking to raise approximately US$600 million through its IPO [6] - Montage plans to issue up to 130.2 million ordinary overseas shares for its secondary Hong Kong listing [6] Group 3: Strategic Objectives - OmniVision intends to use proceeds from its Hong Kong listing to recruit and retain R&D talent, build R&D facilities, and expand in global markets [7]