In the U.S. and global markets, following a busy start to the new presidency, stocks are near record highs. The focus turns to corporate earnings and economic updates. Recently, the tech-led surge in U.S. equity indexes, influenced by Trump's investment plan and strong results, propelled the S&P500 to a new intraday high.
Despite a slight pullback in stock index futures and a rise in Treasury yields in the "risk on" climate, demand remains strong, as seen in the successful 20-year bond sale on Wednesday. Investor interest in sovereign debt sales across developed markets has been robust, alleviating concerns about government funding.
Recent mild inflation reports have aided market stability, with 10-year Treasury term premiums at a year low. U.S. oil prices decreased due to Trump's pro-drilling stance. The absence of new tariffs announcements is notable, with the issue unresolved.
Trump's next move hangs over ongoing discussions. The World Economic Forum in Davos will feature a virtual appearance by Trump, while on Wall Street, economic updates are on the horizon with weekly jobless claim numbers and January business surveys forthcoming.
Earnings reports from Texas Instruments and General Electric are eagerly awaited. In China, market measures aim to boost confidence amid ongoing tariff concerns. In Europe, stocks are steady with expectations of future ECB interest rate cuts.
Notable currencies remained stable and markets anticipate rate adjustments in Japan and Canada. Thursday's focus includes key events like U.S. jobless claims, European consumer confidence data, and Canadian retail sales. Additionally, notable company earnings and high-profile participants at the World Economic Forum in Davos will shape market sentiment.