A preview of the upcoming day in European and global markets by Kevin Buckland.
Monetary policy has once again taken the spotlight, with tech shares regaining stability after the turbulence earlier this week.
The U.S. Federal Reserve, as anticipated, maintained its rates unchanged, leading a series of overnight decisions. Fed Chair Jerome Powell's dovish remarks counterbalanced the Fed's hawkish stance, leaving traders uncertain about the timing of the next rate cut.
In contrast, Sweden and Canada both opted for rate cuts. However, the Riksbank hinted that their current easing phase might conclude, while Canada's central bank raised doubts about a possible March reduction due to inflation risks linked to U.S. tariffs.
Moving on to the European Central Bank (ECB), akin to the Bank of Canada, is poised for rapid successive rate cuts today, in March, July, and potentially in December. Yet, similar to Canadian markets, concerns over tariffs imposed by President Donald Trump remain a significant factor.
Despite a significant number of Asian markets closed for the Lunar New Year, Tokyo rebounded from early losses, Sydney's market closed at a record high, and U.S. stock futures are on the rise after a weak Wall Street closure.
The earnings season for major companies known as the "Mag 7" commenced Wednesday with varied outcomes: Microsoft surpassed quarterly revenue estimates, Tesla fell short of fourth-quarter profit margins, and Meta predicted first-quarter revenue below market expectations.
Apple is set to release its earnings after market close today.
Following a record peak on Wednesday driven by strong results from Dutch chip equipment maker ASML, European stocks begin from a position of strength.
Additionally, Europe can expect a diverse array of corporate earnings today including ABB, Deutsche Bank, Hennes & Mauritz, Shell, and STMicroelectronics. Key market-influencing events to look out for on Thursday include the ECB policy decision, European earnings reports, and Apple's financial results.