📆 Wednesday, January 29
► European stocks extended gains, driven by ASML’s massive ~10% surge after reporting Q4 order bookings of €7.09B, well above expectations. Chief Executive Officer Christophe Fouquet also said at today's press conference “Anyone that lowers cost (regarding the impact of DeepSeek) is good news for ASML. Lower cost means AI can be used in more applications, more applications mean more chips.” The Stoxx 600 (+0.50%) rose, with semiconductors leading gains. LVMH fell 5% on disappointing sales, weighing on luxury stocks. Spain’s GDP expanded 0.8% in Q4, exceeding forecasts, while Germany’s consumer confidence slipped ahead of February.
► US stock futures trade higher, continuing Tuesday’s tech-led rebound, as Nasdaq 100 futures (+0.4%) and S&P 500 futures (+0.15%) gained momentum. Microsoft (MSFT), Meta (META), and Tesla (TSLA) report earnings today, with Apple (AAPL) and Amazon (AMZN) set to report tomorrow. Investors will be closely watching for AI-driven growth and consumer demand trends. ASML’s strong orders eased fears sparked by DeepSeek’s AI model, helping Nvidia (NVDA) recover 9% on Tuesday. Bond markets steadied, with the 10-year Treasury yield dipping to 4.53% (- 3bp) as traders positioned ahead of the Fed decision and Powell’s comments on rate cuts. Markets are cautious ahead of the Fed’s rate decision, with expectations that the central bank will keep rates steady at 4.25%-4.5% while hinting at future cuts.
► Asian markets posted gains in light holiday trading, with Japan’s Nikkei 225 (+1.02%) rebounding as tech stocks recovered from Monday’s sell-off. Sony jumped after naming a new CEO, while the JPY remained at 155.6/USD. Australia’s ASX 200 (+0.57%) hit a seven-week high after Q4 inflation came in below expectations (2.4% YoY), boosting rate cut hopes. China, Hong Kong, Taiwan, and South Korea remained closed for Lunar New Year, keeping regional trading volumes subdued.
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