US collaborates with Japan, Mexico, and EU on critical minerals; Nasdaq proposes new IPO rules.

US Collaborates with Japan, Mexico, and EU on Critical Mineral Resources

The Trump administration announced on Wednesday that the US will collaborate with Japan, Mexico, and the European Union to develop critical mineral resources essential for defense and other industries.

Key Points

• The proposed agreement aims to identify critical minerals needed for specific industries and create policies to encourage their mining and processing into products like rare earth magnets.

• A joint statement from the involved governments indicated that a memorandum of understanding will be reached within 30 days to support mining, refining, processing, and recycling projects.

• The US Trade Representative's office stated that a similar action plan will be implemented with Mexico within the next 60 days.

• US Vice President Pence mentioned that part of these initiatives will involve establishing a "preferential trade zone" for critical minerals, which includes setting minimum prices and imposing tariffs on countries outside this zone.

Middle East Leaders Lobby for US-Iran Negotiations

On February 4, it was reported that several Middle Eastern leaders successfully lobbied the Trump administration to resume the US-Iran nuclear negotiations originally scheduled for February 6, which will now take place in Oman.

US Labor Statistics Bureau Delays Employment Reports

The US Bureau of Labor Statistics has postponed the release of the January employment report to February 11, the consumer price index report to February 13, and the December job vacancies report to February 5.

US Treasury Secretary on Bitcoin

US Treasury Secretary Scott Bentsen testified that the government has no authority to bail out Bitcoin or instruct banks to hold cryptocurrencies, emphasizing that taxpayer funds cannot be used for such investments.

EU Resumes Trade Agreement Process with the US

Following Trump's retraction of threats regarding Greenland, the European Parliament has agreed to restart the approval process for the previously frozen EU-US trade agreement.

EIA Reports Significant Drop in US Oil Inventories

The EIA reported a decrease of 3.455 million barrels in US crude oil inventories last week, the largest drop since 2016, amid severe cold weather.

Nasdaq Proposes New Inclusion Rules for Large IPOs

Nasdaq plans to adjust its flagship index inclusion rules by establishing a "fast track" to significantly shorten the waiting time for large IPOs, ensuring the index reflects market conditions more timely.

Mixed Performance in US Stock Markets

The US stock market showed mixed results, with the Dow Jones Industrial Average rising by 0.53%, while the Nasdaq Composite fell by 1.51%, breaking below the 100-day moving average.

Google Reports Strong Q4 Earnings

Google's Q4 revenue exceeded expectations at $113.83 billion, with significant investments in AI technology, including a partnership with Anthropic for AI chips.

Qualcomm and AMD Face Market Challenges

Qualcomm's stock fell over 9% after a lackluster earnings outlook, while AMD dropped more than 17% following disappointing earnings results.

BYD's Sales Surge in Germany

BYD's sales in Germany skyrocketed by over 1000%, selling 2,629 vehicles in January, significantly outpacing Tesla's 1,301 registrations.

Hong Kong IPO Market Remains Strong

The CEO of the Hong Kong Stock Exchange reported that over 400 companies are queued for IPOs, indicating robust demand despite concerns of a backlog.

Upcoming Economic Data

The US will release initial jobless claims data at 21:30, while the European Central Bank will announce its interest rate decision. Earnings reports from companies like Amazon are also anticipated.