1. China is investable again.

Money managers are warming up to China again after a few difficult years following a property slump.
And Chinese equities remain cheap.
The MSCI China Index trades at 11 times forecast 2027 earnings – roughly half the U.S. multiple and also below Japan and Europe. Yet earnings growth for the Chinese benchmark will exceed 15% in 2027, the same as American levels, Goldman Sachs data citing FactSet shows.
Also, China, once seen simply as the workshop of the world, is now also an innovation hub. Global companies are investing not necessarily to bring their own technology into the People's Republic, but often to keep up with cutting edge local developments, with a view to bringing what they learn back home.

Below: Average allocations by global equity funds to Chinese assets are very low at 1.8%.

2. AI is moving from experimentation to monetization.

According to The Wall Street Journal, Anthropic expects to generate $10.9 billion of revenue in Q2, versus $4.8 billion in Q1 and less than $2 billion in 4Q25, and to deliver its first quarterly operating profit, at roughly $559 million.
Why does this matter?
Enterprises and developers are paying for AI because the ROI is tangible and good: coding, agents, workflow automation and security use cases has moved from demos into production.
Second, profitability matters because it debunks one of the key AI bears argument that demand is being subsidized and that the circular financing fears. A 5% operating margin may not look spectacular in isolation, but it is remarkable for a company growing this fast and still investing heavily in compute, product and distribution. More importantly, reported gross margins in the ~70% range suggest the underlying unit economics are already very strong, with operating expenses still absorbing much of the economics because the company is scaling at an extraordinary pace.

3. Asian currencie under pressure from oil shock.

Asia buys about 80% of oil shipped through the shuttered Strait of Hormuz and stress in foreign exchange markets is one of the clearest signs that rising fuel prices are starting to hurt growth.
Governments are in an unenviable position. The path to preserving growth is precarious because falling currencies can shake confidence and stoke inflation, but supporting them with higher rates means a hit for consumers and the economy's growth engine on top of the fuel shock.

4. Quantum computing stocks surge on $2 billion US award report.

Shares of U.S. quantum computing companies jump premarket following report that U.S. government will award firms $2 billion and take equity stakes in some companies.
IBM gains 9% as co will receive $1 billion of the package to boost quantum computing industry, Wall Street Journal reports.
Chip company GlobalFoundries climbs 9.5%, as report says co will receive $375 mln of the package.
D-Wave Quantum surges 9.9%, Rigetti Computing adds 11% and Infleqtion jumps 18.7%, as the companies will also be awarded funds by U.S. government, report says.

5. Tech stocks vs. Tech jobs.

The market is not the economy.

Tech stocks relative to the market: all-time high. Tech jobs relative to all jobs: all-time low.

We will be back in two weeks…