📆 Friday, January 26
► European markets rose today, led by a surge in luxury stocks following LVMH's robust sales update. The Stoxx 600 index gained over 0.8%, with LVMH's 11% jump inspiring rallies in luxury peers like Christian Dior and Moncler but also supported the cyclical sector in general, such as German auto makers, in particular luxury car brands such as Porsche. LVMH is the most important luxury company in the world and Europe's overall second most valuable company (after Danish drug maker Novo Nordisk). Barclays' upgrade of European luxury stocks to overweight, citing global diversification, added to the sector's strength. This rise contrasted with a pause in US equity futures and a decline in Asian markets.
► US markets are bracing for a pause after a six-day rally, with S&P 500 and Nasdaq 100 futures signaling muted activity and signs of profit taking as investors continue to wait for more guidance (and data) according to our Chief Analyst Robert Lindner. The focus is on upcoming earnings reports from such as American Express, following Intel's disappointing results. Intel’s stock fell after issuing a weak forecast, reflecting struggles in its data center chip business. Traders are also awaiting the core PCE index data, the Fed's preferred inflation measure, for further market direction. We also see global credit spreads tightening to two-year lows, reflecting investors' eagerness to capitalize on high yields before potential central bank rate cuts.
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