📆 Friday, January 31
► European markets extended gains, with the Stoxx 600 (+0.35%) set for its sixth straight weekly advance. Germany’s DAX (+0.15%) lagged as the unemployment rate ticked up to 6.2%. German markets await the release of inflation data later today. Inflation data for France showed an annual increase of 1.4%, below the 1.5% expected by analysts – keeping hopes high for further interest rate cuts. Novartis (NVS) rose after announcing strong fourth-quarter results, but a weak outlook for 2025 dampened enthusiasm. Oil giants ExxonMobil (XOM) and Chevron (CVX) will announce their results later today, with investors looking to dividend and buyback forecasts given the volatile (recently much lower) crude oil prices.
► US stock futures climbed, with Nasdaq 100 futures (+0.6%) and S&P 500 futures (+0.35%) after Apple (AAPL), Intel (INTC), Visa (V) rallied post-earnings. Apple's EPS and services revenue beat expectations, but iPhone sales fell short of expectations and sales in China remained weak again. Investors remain optimistic, mainly due to continued strong sales of Macs and Apple services. Intel beat forecasts, signaling a recovery in the semiconductor sector. Visa and Mastercard showed very healthy consumer spending yesterday. Investors remain on edge over Trump’s upcoming tariff decision. The White House confirmed that new tariffs on Canada and Mexico could be announced on Saturday, with the possibility of 25% duties on key imports. Treasuries fell, with the 10-year yield climbing slightly (+2 bps) to 4.535%, reflecting expectations that higher tariffs could delay potential Fed rate cuts. Markets await the release of PCE Price data later today to give more insights to the Fed’s rate cut outlook.
► Asian markets ended the week higher, with Japan’s Nikkei 225 (+0.34%) extending gains as retail sales (+3.7% YoY) and industrial production rebounded. Tokyo’s core inflation rose to 2.5%, fueling speculation of BOJ rate hikes. The JPY strengthened to 154/USD. China, Hong Kong, and Taiwan remained closed for Lunar New Year, keeping overall trading volumes subdued.
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