📆 Thursday, February 15
► Europe’s Stoxx 600 can continue to recover after the Tuesday slump, with also stocks tracking gains in Asia and the US, as overall optimism and strong earnings offset inflation worries. The UK faced economic challenges as data revealed the country slipped into a technical recession in the latter half of 2023. This development led to a weakening of the GBP, with GDP contracting more than expected in Q4. UK traders had initially anticipated policy easing by the Bank of England, given the lower-than-forecast inflation in January. The bond market sees yields drop across the US, Germany, and the UK. Eurozone awaits trade balance figures to give more insight on the region's economic health.
► The S&P 500 continues to recover retaking the 5,000 mark despite hotter-than-expected US core inflation for January. In addition to this, Tech megacaps and positive earnings reports, including from Uber and Robinhood, bolstered US stocks. This optimism occurs despite persistent inflation worries, with US core inflation data for January complicating the Federal Reserve's rate cut trajectory. The USD index softened slightly as yields gave back some of their recent strong gains, while the GBP dipped against the USD after UK's recession confirmation further raising BoE rate cut expectations.
Subscribe to see more
