📆 Tuesday, January 23
► European stocks and US equity futures showed minimal fluctuations in early US pre-market trading as market participants await the latest corporate earnings to gauge the global economic climate and supply chain impacts. The Stoxx 600 index in Europe (trading at around -0.2%) was bolstered by a rally in mining stocks, fueled by optimism over Chinese demand and rising iron ore prices but is overall weighed down by caution.
► In the US, equity futures remained relatively unchanged after Wall Street recorded modest gains, leading to new record highs. The market's focus is heavily on the unfolding earnings season, with major corporations like Netflix, Tesla, and Intel set to release their financial updates. However, caution prevails due to mixed signals regarding the economy's strength and the effectiveness of the Federal Reserve's monetary policies.
► Asian markets, particularly in China, witnessed a significant rally following the announcement of a market stabilization fund. This fund, reportedly valued at about 2 trillion CNY (~$278 billion), aims to bolster the Chinese stock market, which has faced substantial challenges. The massive stimulus signs in China also positively impacted the broader Asian market, with notable gains in sectors like technology and consumer goods. The JPY rose slightly after cautious signs from the Bank of Japan to hike rates later this year. The swaps market are pricing a 45% probability of a rate hike by the BoJ’s April meeting, with the likelihood rising to 100% by the July gathering.
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