Daily Brief - 27 June 2024

Asian shares fall on tech losses and stronger dollar

Asian shares dropped after Micron Technology's weak sales outlook affected major tech companies. Stocks in Japan, Hong Kong, South Korea, and China declined, with the MSCI Asia Pacific index heading for its first loss in three days.The yen strengthened slightly after nearing a 38-year low, while the dollar remained strong due to expectations of prolonged high interest rates by the US Federal Reserve. Concerns over inflation in the US are also impacting markets, with upcoming economic data being closely watched. In commodities, gold steadied, and oil traded within a narrow range.

JPMorgan says Fed stress test results are too optimistic

JPMorgan Chase stated that the Federal Reserve's stress test results were more optimistic than their own estimates, particularly in assessing other comprehensive income during a hypothetical downturn.The bank suggested that if their analysis is accurate, stress losses would be slightly higher than the Fed reported.This highlights ongoing differences between the Fed and banks in such assessments. Despite this, the Fed's results showed all 31 major banks would meet minimum capital requirements in a recession, paving the way for potential higher shareholder payouts.

Sequoia leads fundraising in Dust, French AI startup

Sequoia Capital is leading a $16 million investment in Dust, a French startup creating customized AI bots for companies. Dust, founded by ex-OpenAI scientist Stanislas Polu, develops software that integrates with AI models from OpenAI, Google, and others, enhancing customer service and data management.With over 5,000 active users and $1 million in annual revenue, Dust plans to use the funds to expand into the US. This investment is part of a growing trend of venture capital into French AI startups, highlighting Dust's potential in a competitive market.