📆 Wednesday, January 24
► Global stocks see strong gains, with Europe's Stoxx 600 index gains rising near 0.8%, as mining stocks / China sensitive stocks are rising sharply after the People's Bank of China announces a reserve requirement ratio cut, aiming to stimulate the economy. Our chief analyst Robert Lindner already predicted yesterday that he expects Beijing to follow suit given the strong weakness in Chinese equity markets and yesterday's positive reaction due to rumors of coming stimulus measures. US equity futures also show solid gains, riding high on Wall Street's recent closing highs. Asian markets are strongly up, with Chinese stocks in Hong Kong (but also in New York) continuing their ascent post-stimulus announcement.
► In Europe, ASML Holding’s shares surge as the semiconductor equipment maker reports a tripled order volume, indicating a potential rebound in the semiconductor industry. SAP jumps on restructuring and AI focus, projecting €10 billion operating profit next year. In Germany, manufacturing PMI shows improvement, but services PMI and the composite PMI indicate contraction, reflecting challenges in Europe's largest economy. France's composite PMI also contracts, marking a continued economic downturn. The ECB is also in the spotlight, with expectations to counter interest rate cut bets.
► In the US, the focus is on upcoming GDP data and Fed-preferred PCE inflation numbers ahead of the Federal Reserve’s policy meeting next week. Upcoming US earnings include Tesla, IBM, AT&T, and Abbott Laboratories. Netflix's stock rallies in after-hours trading, following a report of substantial subscriber growth.
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