The Democrats' sweeping election victory sparked sharp market volatility last week, with an initial rally quickly giving way to a technology-led sell-off as investors reassessed the outlook for AI investment and data centre expansion. Capital rotated into less AI-exposed markets, supporting Chinese and Indian equities while Europe held up relatively well. Beyond equities, oil prices recorded one of their steepest declines since 2020, while gold and the USD advanced. Asian markets are attempting a fragile rebound at the start of the week. Mensur Pocinci, Head of Technical Analysis, views last week's moves as a liquidation event: these have historically been followed by stronger market performance over the medium term.
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