The global markets opened on Tuesday, digesting an array of data, including defense contracts and economic indicators from South Korea. They also took note of volatile movements in commodity prices, as well as the continued consolidation within the artificial intelligence industry.
Investors are taking into account geopolitical risk and shifting growth indicators in Asia, the US and Europe.
Boeing secures major US Air Force Contract for Israel
Boeing was awarded an $8.58-billion contract by the US Air Force for building fighter jets to be used by the Israeli Air Force. The Pentagon announced this on Monday.
Israel has the option to buy an additional 25 F-15IA jets. The contract covers design, development, integration, test, production and delivery.
The contract is to be completed in St. Louis Missouri and will last until December 31, 2035.
This deal will include $840m in foreign sales of military equipment to Israel. These funds are payable at the moment the contract is awarded.
Boeing was also awarded a modification of a previous Air Force contract in Oklahoma City for Depot Maintenance Services and Supply Management.
The total award value has increased to $4.2 billion from the previous $1.5 billion.
South Korea data signals uneven economic momentum
Statistics Korea’s latest data shows mixed signals coming from Asia’s fourth largest economy.
The retail trade in South Korea decreased by 3.3% from November to the preceding month. However, it increased 0.8% year on year.
The industrial output fell by 1.4% in November compared to the same month last year. This is due to a decline in manufacturing.
However, on a monthly level, the overall production rose 0.6% compared to October.
The construction activity was subdued. It fell 17.0% on an annual basis, even though it rose 6.6% from the previous month.
The services sector provided some assistance, as output increased by 0.7% on a monthly basis and by 3.0% when compared to a year ago.
Asian markets fall as tensions and metals cooling rise
Asian stocks dipped on Tuesday as a result of a decline in US tech stocks, and increased geopolitical tensions.
The broadest MSCI index for Asia-Pacific stocks outside Japan rose 0.12% and is on course to achieve an annual increase of 26.7%. This will be its best performance in years.
Japan’s Nikkei index fell by 0.13%, but it was still around 28% higher for the entire year. Taiwanese stocks dropped by 0.36% while China’s blue chip index rose 0.27%.
Commodity market volatility was high. The commodity markets were volatile.
Gold prices also fell sharply, before stabilizing. Brent crude oil prices were almost unchanged at $61.52 per barrel, after a strong overnight gain.
Meta expands with acquisition of AI startup Manus
Meta Platforms, which continues to invest in artificial intelligence, has acquired Manus, an AI agent developer based in Singapore. The financial terms of this deal have not been disclosed.
Manus provides AI-based tools that are available as subscriptions. These include tasks like market research, data analysis and web creation.
The company was founded in China, as part of a startup called Butterfly Effect. It later moved its headquarters to Singapore. Within eight months after launch it reported an annualized income of more than $100 million.
Meta announced that Manus’ employees will join Meta’s AI team, thereby enhancing Chief Executive Mark Zuckerberg’s plan to implement AI in consumer products and enterprise solutions.
The COINPAPER published Morning Brief: Boeing Secures $8.6B Fighter Jet Deal, Meta Buys Startup Manus.
