The AI revolution is impacting markets and turning certain sectors upside-down. The software sector came under the market microscope overnight, with many leading names headed by shares in Microsoft and SAP, tanking. The whole business model may be now under threat from AI. Similarly, demand from AI and the energy/renewables sector, for precious metals (silver, copper palladium etc) will likely outstrip production. This combined with a flight from fiat currencies, is causing market upheaval, in commodity pricing. The Federal Reserve left rates unchanged, citing a broadly robust US economy, not requiring monetary stimulus. Interest rates will come down dramatically, when Fed Chairman Powell is gone, hopefully before his term expires in May 2026. The US Dollar remains under pressure, with the EUR heading back to 1.2000, while the GBP bursts through 1.3800.NZ Trade numbers revealed a very rare surplus in December, boosting sentiment and the currency. The NZD surged through 0.6050, aided also by the savaged reserve, while the AUD breached the important 0.7000. Markets appear to be experiencing a complete reset.
