📆 Tuesday, January 14
► European equity futures advanced on Tuesday, with the Stoxx 600 index up 0.5%. This increase is fueled by optimism around gradual US tariff hikes under the Trump administration. Reports suggest the plan could involve incremental tariff increases of 2%-5% per month to give the US leverage in trade negotiations. In corporate news, BP reported that a drop in refining margins is expected to hurt its fourth-quarter profits. In France, new Prime Minister Francois Bayrou is expected to deliver a speech in parliament, outlining a deal to water down pension reforms in exchange for support from the left for the budget. French debt yields are trading near their highest levels in 12 years, signaling market unease over potential political instability.
► US equity futures point to a positive opening (but PPI report will come out before NYSE opening), buoyed by positive sentiment surrounding the gradual tariff plan. The Nasdaq was pressured on Monday by a 0.4% drop in megacap AI chipmakers, such as Nvidia, following the announcement of new US restrictions on AI chip exports. The 10-year Treasury yield ticked lower to 4.79% after a recent surge fueled by strong labor market data. We also see the USD falling for the first time in six sessions as tariff optimism reduced demand. However, this may be short-live as investors are awaiting US producer prices data later today and US consumer price inflation data due Wednesday, with December’s core CPI expected to rise by 3.3% YoY. The upcoming US inflation reports will have a major impact on the USD, US and global stocks and risk sentiment.
Subscribe to see more
