Global Equities Retreat as Chinese AI Startup DeepSeek Emerges as Threat

Key Points:

* Nasdaq 100 futures plunge 3%, S&P 500 futures drop 1.6%
* DeepSeek's AI model challenges US tech giants' dominance in AI
* Bitcoin slides below $98,000 amid profit-taking and lack of confirmation on Bitcoin reserve

Market Movements:

Stocks:

* Stoxx Europe 600: -0.8%
* S&P 500 futures: -1.9%
* Nasdaq 100 futures: -3.1%
* Dow Jones Industrial Average futures: -1%
* MSCI Asia Pacific Index: -0.1%
* MSCI Emerging Markets Index: -0.3%

Currencies:

* Bloomberg Dollar Spot Index: +0.2%
* Euro: -0.2%
* Japanese yen: +0.4%
* Offshore yuan: -0.4%
* British pound: -0.3%

Cryptocurrencies:

* Bitcoin: -5.3%
* Ether: -7.3%

Bonds:

* 10-year Treasuries: -7 basis points
* Germany's 10-year yield: -4 basis points
* Britain's 10-year yield: -4 basis points

Commodities:

* Brent crude: -0.2%
* Spot gold: -0.5%

Analysis:

DeepSeek's advancements in AI have sent shockwaves through the tech industry, potentially threatening the market dominance of US giants like Apple, Microsoft, Meta, and Tesla. The startup's cost-effectiveness and reliance on less-advanced chips pose a significant challenge to the high valuations of established players like Nvidia.

Key Events This Week:

* ECB President Christine Lagarde and others speak
* US consumer confidence and durable goods data
* Chile rate decision
* Australia CPI
* BOE Governor Andrew Bailey speaks
* US rate decision
* Tesla, Microsoft, Meta, and ASML earnings
* Canada, Brazil, South Africa, and Japan rate decisions
* US GDP, jobless claims, and inflation data
* Apple, Deutsche Bank, and Shell earnings