📅 Thursday, July 24
► European equities climb on rising trade optimism; Focus on ECB rate decision
The Stoxx 600 advanced +0.3%, driven by banking and luxury names, as earnings season peaked and fresh trade optimism spread. Deutsche Bank surged to decade highs on strong trading results, while BNP Paribas gained +3%, and markets await LVMH earnings after the close. The CAC_40 (-0.05%) is underperforming after a weak Q2 report from STMicroelectronics. Meanwhile, investors expect the ECB to hold rates steady for the first time in over a year, citing uncertainty from upcoming US-EU tariff developments. The euro area’s private sector grew at the fastest pace since August, and Eurozone bond yields edged higher (German 10Y +3bps to 2.67%). EUR/USD fell to 1.1747, and investors are watching closely for confirmation of a US-EU trade pact before the Aug. 1 deadline.
► Wall Street higher as Alphabet lifts tech; Tesla disappoints
US futures were mixed after Wednesday’s close saw the S&P 500 +0.78%, notching its 12th record close of 2025. Alphabet surged ~4% after beating earnings and raising capex guidance by $10 billion to meet AI demand. But Tesla tumbled ~6% on weak auto revenue. Nasdaq 100 futures are up in pre-market trading +0.3%, while Dow futures fell -0.3%, pressured by IBM’s ~6% drop after a miss in software revenue. Investors are closely watching for Trump’s unprecedented visit to the Federal Reserve today, escalating political pressure on Jerome Powell. On the trade front, Bloomberg confirmed that US-EU deal talks are advancing, potentially creating more upside in European equities.
► Asian markets broadly positive; Japan leads again, India lags
Asia remained upbeat following strong US tech earnings and continued trade tailwinds. Japan’s Nikkei jumped +1.59%, while Shanghai +0.65%, Shenzhen +1.21%, and South Korea’s Kospi +0.21% all posted solid gains. In contrast, India’s Nifty 50 -0.63%, weighed by broad profit-taking. The ASX 200 slipped -0.32%, while Singapore’s STI rose +0.99%. Japan’s strength continues as carmakers and exporters benefit from the recent bilateral trade deal with the US, while talks with South Korea about similar arrangements signal more positive developments ahead. Currency markets were calm, with USD/JPY at 146.55 (+ 0.05%), and emerging market FX stable despite local volatility in Thailand after Thai fighter jets attacked two Cambodian army posts.
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