Swiss equities are set for a softer open, with the SMI positioned 0.26% lower before the start at IG Bank, after the index rose 0.75% on Monday. Middle East tensions and a rising oil price weighed on Asian markets on Tuesday, after a new attack by Iran-supported Houthi rebels in Yemen on Saudi Arabia raised concerns about crude supply. Investors also stayed cautious ahead of expected interest-rate decisions in the United States and Japan, while debate over a slower pace of artificial-intelligence development added to uncertainty.
The broad MSCI index for Asian stocks outside Japan eased slightly, while Tokyo gained 0.9% and Shanghai made a small advance. Yokoo Akihiko, an analyst at Mitsubishi UFJ Bank, said markets are likely to remain focused on the risk that higher oil prices could increase inflation pressure and push interest rates higher.
In currency markets, the dollar rose 0.3% to 154.87 yen and edged up to 6.7097 yuan. It was 0.15% higher against the franc at 0.8190. The euro was little changed at 1.1536 dollars and gained slightly to 0.9437 francs.
On commodity markets, North Sea Brent crude rose 1.6% to $107.40 per barrel, or 159 liters, while US WTI crude climbed 1.7% to $103.15. Gold eased slightly to $4,291.59 per troy ounce.
A moderate easing in oil prices had provided some support to US markets on Monday, but concerns over artificial-intelligence security continued to pressure semiconductor stocks. The Nasdaq 100 fell 0.82% to 29,127.16, the S&P 500 narrowed its loss to 0.48% at 7,619.98, and the Dow Jones Industrial Average declined 0.29% to 52,421.20 after temporary gains.
Prominent industry voices have been skeptical about the pace of AI development. Dario Amodei, chief executive of Anthropic, said that after the shock of autonomous AI hacking attacks, he is concerned that an AI swarm could be able to take over the entire internet within six to 12 months, potentially causing hundreds of billions of dollars in damage. He called on the industry to slow the development of its most powerful models.
Growing calls for AI regulation had already weighed on technology stocks in Asia, including a decline in South Korea's Kospi, while European investors also avoided technology titles. Timothy Arcuri, an expert at UBS, described a 'new, significant risk factor' that is clouding the outlook for the chip industry. He did not expect a massive fundamental slowdown, noting that leading AI labs had recently launched far-reaching infrastructure investments, but said expectations would require assuming a 'very positive scenario' for infrastructure expansion.
Cybersecurity stocks benefited from the concerns. Shares of CrowdStrike, Palo Alto and Okta rose between 12% and 14%.
