📆 Monday, February 5
► European shares are little changed, with the Stoxx 600 holding steady. Markets reacted to earnings news, with UniCredit SpA's shares jumping 7% after surpassing profit expectations. Germany recorded a significant trade surplus in December 2023, indicating solid demand for German products amidst global trade uncertainties. We also see other Eurozone composite PMIs indicating an improving economic situation – although German data is clearly lagging behind other Eurozone economies, as the PMI's are still in contraction territory. Germany is the sick man in the Eurozone, suffering under poor leadership.
► US equity futures dipped, with the Nasdaq and S&P 500 dipping by 0.2%. Following Federal Reserve Chair Jerome Powell's remarks on CBS’s 60 Minutes, US 10-year yields surged reaching close to 4.09%, reflecting further reduced expectations for a March rate cut. The hawkish tone from Powell led to a stronger USD against major currencies, as bets on a Fed rate cut in March significantly decreased. Powell emphasized the risk of acting prematurely before inflation is fully controlled.
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