Analysts at Goldman Sachs predict that Chinese equities will experience a volatile period due to rising tensions between the US and China, uncertainty over tariffs from the incoming US administration, and muted policy actions from China ahead of its National People's Congress in March. This volatility is reflected in the decline of regional stock markets, including the MSCI Asia ex-Japan index, which fell 0.60%, and Japan's Nikkei index, which dropped 0.13%. Additionally, Chinese ADRs declined by 0.2% overnight, while the yuan weakened to 7.3316 per US dollar, a 0.04% decrease from its previous close.
https://www.brecorder.com/news/40341654/china-hk-stocks-slide-as-chip-consumption-sectors-drag-marketsThe US dollar experienced fluctuations in value against other currencies due to reports and actions by President-elect Donald Trump regarding tariffs and sanctions. The dollar initially dropped by 1% before recovering, as it is cheaper for buyers using other currencies when the dollar is weaker. This had an impact on oil prices, with Saudi Aramco raising crude prices for Asian buyers in February after a three-month decline. In contrast, annual inflation rose more than forecast in Germany due to higher food prices and lower energy price drops. The Biden administration plans to impose further sanctions on Russia over its war on Ukraine, targeting Russian oil revenues, while Goldman Sachs predicts Iranian oil production will decrease due to expected policy changes and tighter sanctions from the Trump administration.
https://www.khaleejtimes.com/business/energy/oil-prices-edge-up-to-12-week-high-on-us-winter-storm-weaker-us-dollarCiti and Bank of America have announced that they are leaving the Net-Zero Banking Alliance, a global climate-banking group. This decision comes after Goldman Sachs and Wells Fargo had already exited the coalition in recent weeks. Despite their departure from the alliance, both Citi and Bank of America remain committed to achieving net zero emissions targets.
https://news.bloomberglaw.com/esg/citigroup-decides-to-leave-climate-banking-groupUS banks Citigroup and Bank of America have announced their exit from the Net-Zero Banking Alliance, a group of global banks committed to reducing greenhouse gas emissions. This move follows similar decisions by Wells Fargo and Goldman Sachs earlier this month. The NZBA was established to promote sustainable banking practices and reduce carbon footprint in the financial industry.
https://www.manilatimes.net/2025/01/02/business/foreign-business/citigroup-bofa-exiting-nzba/2029080