📆 Thursday, April 17
► European markets were mixed on Thursday, with investors cautious ahead of the European Central Bank's rate decision and a wave of earnings. The Stoxx 600 slipped past 0.35%, pressured by weakness in luxury shares, notably Hermès, after soft Chinese demand. However, the DAX (GER40) is little changed (-0.2%), the CAC 40 (FRA40) ist down about 0.5%, and the FTSE 100 (UK100) fell more sharply down more than 0.8%. Yesterday’s inflation data showed inflation eased to 2.2% in March, in line with forecasts, reinforcing expectations of an ECB rate cut later today.
► US stock futures are trading significantly higher, buoyed by renewed optimism over US-Japan trade negotiations. S&P 500 futures rose over 0.7%, while Nasdaq 100 futures surged past 1%. President Trumpcited “big progress” in talks with Japan, easing some trade fears after a volatile week. Bond markets also firmed, with the US 10-year Treasury yield rising to 4.31%. Investors largely shrugged off cautious Fed signals, focusing instead on potential trade breakthroughs. Meanwhile, Taiwan Semiconductor (TSM) posted Q1 EPS of $2.12, beating estimates, though its revenue of $25.53 billion missed slightly, raising questions about global chip demand momentum. TSM is trading 3.5% higher pre-market.
► Asian markets mostly gained, boosted by signs of diplomatic progress. Japan’s Nikkei 225 soared 1.35%, following upbeat trade talk headlines. The broader Asian mood was more reserved, with Shanghai’s Composite Index inching up 0.13%, and the Shenzhen Component marginally lower. The CNY weakened slightly against the USD, while mainland equities found some footing after reports China remains open to negotiations under certain conditions. Hong Kong’s Hang Seng Index rebounded strongly rising over 1.5%, while Australian shares continued their recovery (ASX + 0.78%), supported by cooling trade tensions and better-than-expected local employment data.
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