📆 Wednesday, February 26
► European markets moved higher on Wednesday, driven by gains in mining stocks after Trump signaled potential copper tariffs. The Stoxx 600 rose 0.8%, while Germany’s DAX gained 1.3% despite weak consumer sentiment (-24.7) ahead of March. France’s CAC 40 added 1.3% as consumer confidence improved to 93, while Spain and Sweden saw rising producer prices. Beer giant Anheuser-Busch InBev (BUD) surged 7.8% on strong earnings, and German electric utility giant E.ON (EONGY) advanced on solid results (+ 2.9%). Deutsche Telekom (DTEGY) however fell more than 2% after reporting solid earnings and issuing a strong FY25 outlook. Sentiment in Europe was boosted by news of a likely Ukrainian deal with the US to jointly develop its wealth of natural resources, potentially easing tensions with European leaders and improving Ukraine's position.
► US stock futures climbed, with S&P 500 futures up 0.4% and Nasdaq 100 up 0.7%, as markets await Nvidia’s (NVDA) earnings report—seen as a make-or-break moment for AI stocks. The stock is under pressure amid concerns over AI spending sustainability, especially after Chinese AI startup DeepSeek introduced a low-cost alternative. Nvidia (NVDA) will report earnings after the bell, with analysts expecting Q4 sales of $38.5B and guidance around $42.5B. Tesla (TSLA) plunged 8.4% yesterday (currently + 1.4% in pre-market trading), falling below the $1T market cap as European sales dropped 45% in January. Treasury yields rose slightly, with the 10-year yield at 4.31%, as investors weighed Trump’s tax cut plans following House Republicans passing a budget blueprint.
► Asian markets were mixed, with Hong Kong’s Hang Seng, however, rising sharply, led by a rally in tech stocks after DeepSeek brought back AI model access for developers. China’s Shanghai Composite (+1.02%) also gained, while Japan’s Nikkei (-0.2%) hit a three-month low as economic indicators weakened. In Australia, the ASX 200 slid to a six-week low (-0.14%) on weaker-than-expected CPI data, although this fueled expectations of further interest rate cuts by the Reserve Bank of Australia.
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