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Inflation In Greece Increases To 3.1% In January, While Eurozone Sees 2.5% Rise Amid Energy Pressures

Inflationary pressures in the Eurozone showed a slight acceleration in January, with Greece seeing a more noticeable increase. According to preliminary data from Eurostat, Greece’s Consumer Price Index (CPI) rose to 3.1% year-on-year in January, up from 2.9% in December. Monthly, however, prices in Greece decreased by 0.7%.

Across the entire Eurozone, inflation edged up marginally to 2.5% annually, from 2.4% in December (following a 2.2% rise in November). This slight uptick came despite analysts predicting inflation would remain stable at 2.4%. Every month, the index dropped by 0.3%.

When excluding volatile food and energy prices, the underlying inflation rate in the Eurozone remained steady at 2.7% year-on-year. However, when comparing January to December, structural inflation showed a significant monthly decline of 1%.

Looking at individual components, inflation in services decreased slightly to 3.9% in January from 4%, while inflation in food, alcohol, and tobacco slowed more noticeably, falling to 2.3% from 2.6%. The price rise for non-energy goods remained steady at 0.5% annually.

Energy prices were the largest contributor to increased inflation, showing a sharp rise of 1.8% annually compared to just 0.1% in December. Monthly, energy prices rose by 2.9%.

Dell’s Earnings Beat Puts The AI Trade To The Test

Dell Technologies has become a key stock to watch after its latest earnings report strengthened the case for continued AI infrastructure spending but failed to trigger a sustained rally.

Shares jumped more than 13% after Tuesday’s opening bell before giving back much of the gain. By late morning Wednesday, the stock was up about 5%, raising questions about whether strong AI-related earnings are still enough to drive higher valuations.

Strong Results Meet A More Skeptical Market

The reaction echoes last week’s trading in Nvidia. Its shares climbed nearly 9% after strong quarterly results and a stronger long-term outlook, only to surrender much of the advance in subsequent sessions.

That pattern has encouraged some investors to reduce exposure to AI stocks. Strong results remain evident, but markets appear less willing to reward them with sustained valuation expansion.

Dell Raises 2027 Earnings Outlook

Three months ago, Dell shares surged almost 33% after the company raised its fiscal 2027 adjusted earnings-per-share guidance by 39%. Analysts followed by lifting their own estimates, while the stock retained most of its gains.

This time, Dell raised fiscal 2027 earnings guidance to $25.50 from $17.90, an increase of about 42.5%. Street consensus rose nearly 29% overnight, yet the stock was up only about 5% in Wednesday trading.

The weaker share-price reaction suggests investors are applying a more cautious valuation to Dell than they did in May.

AI Exposure Faces Greater Caution

We have been raising cash for the Club as the AI trade has become more volatile and less predictable. Tuesday’s decision to exit Corning increased our cash position to about 15%.

If capital is redeployed, it would likely favor more defensive areas outside AI. That reflects greater caution over valuations and positioning rather than a rejection of the AI investment theme.

Dell’s Trading Could Set The Tone

A further rise in Dell shares would suggest investors remain willing to increase AI exposure, while a flat performance would point to greater valuation discipline. A decline could indicate that much of the earnings upside is already priced in.

Dell’s report, along with Broadcom’s results due Wednesday evening, could still improve sentiment across the group. If investors continue to discount strong AI earnings, however, the case for a more defensive approach will strengthen.

For now, Dell offers a real-time test of whether strong AI-related earnings can continue to drive valuations higher as investor caution increases.

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