Looking ahead at the day in U.S. and global markets with insights from Mike Dolan
As January wraps up, global markets are preparing for potential U.S. imports this weekend, leading to a rise in the dollar and adjusting interest rates.
Despite concerns in the currency market, stocks are climbing, with index futures building on Thursday's gains on Wall Street. The world's most valuable company saw a 4% surge before the market opened today. Apple's positive outlook resonated well, even though they slightly missed quarterly earnings expectations.
President Donald Trump once again took center stage, leaving markets uncertain about the proposed 25% import tariffs on Canada and Mexico scheduled for Saturday.
Trump's announcement prompted movements in the Canadian dollar, nearing a five-year low after a 1% decline following another rate cut by the Bank of Canada. The Mexican peso stabilized after a recent drop but is on track for its worst weekly performance since October with almost a 2% decrease.
The euro hit 10-day lows against the dollar after the European Central Bank's expected interest rate cut. The ECB's decision was supported by reports of economic contractions in Germany and France, along with lower-than-expected January inflation rates.
European stocks soared to new records amidst earnings season, with up 2.4% after strong quarterly income results from the drugmaker.
On Wall Street, tech giants like Apple and Microsoft trended differently after their earnings reports. While Microsoft faced a 6% drop due to cloud computing concerns, gained 13%, marking its largest daily jump since 1999.
Major Oil companies also disclosed earnings, revealing a decline in due to weak margins impacting its refining business negatively for the first time since 2020.
As the Federal Reserve paused rate cuts this week, economic data showed a mix of outcomes, including a slowdown in fourth-quarter GDP growth and better-than-expected jobless claims.
Looking ahead, Friday will unveil data on personal income, spending, employment costs, and the Chicago business survey. Additionally, U.S. corporate earnings reports from various companies will influence market dynamics.