📆 Wednesday, January 22
► European stocks rallied, with the Stoxx 600 rising 0.7%, closing in on a record high. Healthcare, insurance & tech stocks led gains, while miners underperformed as industrial metals and iron ore prices fell on renewed China tariff concerns. Germany’s DAX (+1.1%) and France’s CAC 40 (+0.7%) posted solid gains, tracking Wall Street’s AI-driven rally. UK’s FTSE 100 (+0.4%) extended its winning streak to six sessions, supported by financials and consumer stocks but underperforming due to weak miners. European Union officials signaled readiness to retaliate if Trump imposes tariffs. EU Commissioner Valdis Dombrovskis stated that the bloc will defend its interests “in a proportionate way,” though talks with the US remain ongoing.
► US futures point higher, with S&P 500 futures (+0.4%) and Nasdaq 100 futures (+0.7%) extending gains after Monday’s strong rally (+0.9% S&P 500, +0.6% Nasdaq, +538 Dow points). Netflix surged nearly 15% after reporting strong earnings, surpassing expectations across key metrics. The company posted an EPS of $4.27, beating the expected $4.20, along with revenue of $10.25 billion, exceeding the forecasted $10.11 billion. Subscriber growth also significantly outperformed projections, reaching 301.63 million compared to the expected 290.9 million. Additionally, advertising revenue exceeded expectations, highlighting the continued success of Netflix’s ad-supported tier. Trump’s announcement of a $500B AI infrastructure investment fueled optimism across tech and semiconductor stocks. SoftBank surged 10% after Trump named it as a key participant in the “Stargate AI joint venture“. Treasury yields are steady, with the US 10-year yield near 4.56%, following a 5 bps drop in the prior session. The DXY erased early gains, currently trading 0.25% lower as investors assessed mixed trade policy signals from Trump.
► Asian markets were mixed, as AI optimism lifted tech stocks, while trade concerns weighed on broader sentiment. Japan’s Nikkei 225 (+1.58%) hit two-week highs, fueled by SoftBank’s AI boost and continued BOJ rate hike expectations. The JPY steadied at 155.6/USD. China’s Shanghai Composite (-0.89%) and Shenzhen Component (-0.78%) fell, as Trump reiterated a potential 10% tariff on Chinese goods. The offshore CNY weakened past 7.28/USD, extending losses. Hong Kong’s Hang Seng (-1.63%) dropped, snapping a six-session win streak, as Chinese tech stocks underperformed.
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