📈 Global Market Volatility & Commodity Surge: Sri Lanka Impact

Asian and global markets are experiencing significant turbulence as AI-driven disruption fears hit the software sector, while geopolitical tensions in the Middle East drive a rebound in commodities. • Global Market Wobble Global equities are on "shaky ground" following a sell-off in U.S. and European software and data analytics sectors. This stems from fears that advancements in AI (notably Anthropic’s new agents) could replace traditional software. Asian markets, including Japan’s Nikkei (-1.23%) and Taiwan (-0.68%), also dipped, though the region's focus on hardware manufacturing provided a partial buffer. • Oil & Energy Surge Global oil prices jumped over 1% (Brent at US$ 68.03) following military escalations involving U.S. and Iranian forces in the Strait of Hormuz—a critical waterway for Asian energy imports. This follows a recent Rs. 2 per litre cut in local fuel prices by CPC (Octane 92 at Rs. 292), which may face upward pressure if global trends persist. • Gold & Precious Metals Gold has staged a sharp comeback, reclaiming the US$ 5,000 per ounce level (+1.5%). Locally, this triggered a spike of approximately Rs. 12,000 per sovereign. • 24-Carat Gold: Rs. 380,000 • 22-Carat Gold: Rs. 349,000 • Economic Implications The volatility is exacerbated by the nomination of Kevin Warsh as U.S. Fed Chair, signaling a potential balance sheet shrinkage. While the Colombo Stock Exchange (ASPI) recently saw moderate declines, the local ICT/BPM sector remains a focal point for long-term AI-related structural shifts.