📆 Thursday, September 26
► European stocks surged as the Stoxx 600 index gained over 1%, driven by returned optimism around China’s fiscal stimulus plans, including a potential new $142 (!) billion capital injection into its top banks. The gains come after strong gains in Asia following China's further push to accelerate its struggling economy. Germany’s DAX rose 1% even with the GfK Consumer Climate Indicator staying at -21.2 (but slightly above expectations), and France’s CAC climbed 1.3%, marking its highest level in over three weeks. Retail sales in Spain also boosted sentiment, rising surprisingly by 2.3% Y/Y in August. Additionally, the Swiss National Bank’s decision to cut its policy rate by 25 bps to 1% further supported European equities.
► U.S. equity futures are trading higher in pre-market trading, following gains in Asia in Europe, with Nasdaq 100 futures up over 0.8% and S&P 500 futures currently at +0.5%. Investors also reacted positively to Micron’s strong revenue forecast, fueled by AI demand. The markets are awaiting Federal Reserve Chair Jerome Powell’s speech later today, as well as key economic data, such as U.S. GDP figures, durable goods orders and jobless claims. On Wednesday, Federal Reserve Governor Adriana Kugler reaffirmed her support for recent rate cuts, and traders are now speculating on the possibility of further cuts if inflation continues to ease.
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