📆 Friday, April 12
► European markets saw significant gains today, primarily fueled by rising commodity prices amidst ongoing Middle East tensions and the softened EUR, driven by heightened expectations of interest rate cuts. The Stoxx 600 index surged by over 1%, led by advances in mining, energy, and tech sectors. The EUR fell to a five-month low amid expectations of imminent rate cuts by the European Central Bank, contrasting with a more cautious approach expected from the Federal Reserve. The swap markets are thus following the prediction of our chief analyst, who predicted in recent months that the ECB would not wait for the Fed as usually to make the monetary policy shift. Inflation data also came in but showed mixed signals; Spain's inflation rose to 3.2% while France’s rate cooled to 2.3%. German inflation also eased to 2.2%, offering some relief amidst economic challenges.
► US stock futures were steady, following substantial gains on Wall Street spurred by less concerning producer price figures, suggesting a moderated inflation scenario and an overall rebound with economic data still showing a strong US economy. On the earnings front, Wall Street anticipates a 3.8% growth in S&P 500 companies' earnings, with tech giants like Apple and Microsoft expected to report significant profit increases. Today, markets are keenly anticipating earnings reports from financial giants like JPMorgan and Citigroup, which could provide further direction on the impacts of economic policies and interest rate expectations on the financial sector.
► Mixed performances were seen across Asian markets; Japanese stocks rose, benefitting from a depreciating CNY that supports exporters, while China showed modest gains amid positive trade data. China’s trade surplus narrowed unexpectedly as exports fell sharply by 7.5%, highlighting challenges in trade dynamics. This economic indicator, coupled with the stabilization measures by the People's Bank of China for the CNY, reflects ongoing adjustments in the region's economic policies.
Subscribe to see more
