(Bloomberg) — European shares and US stock futures gained as traders awaited earnings from Apple Inc. and a likely interest-rate cut from the European Central Bank.
Europe’s Stoxx 600 Index was up 0.4% on one of the busiest days in the earnings season. Nasdaq 100 futures rose 0.8% and contracts on the S&P 500 added 0.5% after mixed earnings from big US tech companies on Wednesday. Apple is expected to post record results when the company delivers quarterly earnings later today.
The Federal Reserve left interest rates unchanged yesterday, adopting a “wait and see” approach with inflation still above 2% target. Chair Jerome Powell didn’t provide hints about a potential cut in March, pointing to uncertainty around tariffs and fiscal policies from the new administration. US Treasuries were little changed.
Now attention is on the European Central Bank, which is expected to cut rates by a quarter-point later Thursday to revive the sluggish eurozone economy. The move will continue an aggressive easing cycle, which included four rate cuts in 2024.
“The divergence trade is alive and well with a widening gap between European and US growth expectations that has translated into a much more dovish outlook for the ECB relative to the Fed,” said Daniel Murray, Zurich-based chief executive officer of EFG Asset Management.
READ: ECB Cut All But Certain With Price Goal in View: Decision Guide
The growing competition in artificial intelligence has defined global markets this week, with Chinese startup DeepSeek claiming to have made significant progress on its cheaper AI model. That put a question mark over the spending and investment plans of Silicon Valley firms, sparking a market rout at the start of the week.
Microsoft Corp. shares fell in postmarket trading on Wednesday as cloud revenue growth missed estimates, while Tesla Inc. climbed after saying it expects vehicle sales to rise this year after a challenging 2024. Meta Platforms Inc. delivered a beat.
Oil steadied as investors waited for clarity on the US administration’s plans for trade policy. President Donald Trump’s pick for commerce secretary Howard Lutnick said Canada and Mexico may be able to avoid levies.
In currencies, the yen gained as much as 0.6% against the dollar as fast money traders lined up bets on the currency, according to an Asia-based FX trader. The latest remarks from the Bank of Japan deputy governor Ryozo Himino appeared to strike a cautious tone, with the central banker including the caveat that the BOJ would raise rates if the economic outlook is realized.
Key events this week:
- Eurozone ECB rate decision, consumer confidence, unemployment, GDP, Thursday
- US GDP, jobless claims, Thursday
- Apple, Deutsche Bank earnings, Thursday
- US personal income & spending, PCE inflation, employment cost index, Friday
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.5% as of 8:43 a.m. London time
- S&P 500 futures rose 0.5%
- Nasdaq 100 futures rose 0.7%
- Futures on the Dow Jones Industrial Average rose 0.3%
- The MSCI Asia Pacific Index rose 0.1%
- The MSCI Emerging Markets Index was little changed
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro was unchanged at $1.0421
- The Japanese yen rose 0.4% to 154.54 per dollar
- The offshore yuan was little changed at 7.2619 per dollar
- The British pound was unchanged at $1.2452
Cryptocurrencies
- Bitcoin rose 1.3% to $105,092.62
- Ether rose 1.6% to $3,189.7
Bonds
- The yield on 10-year Treasuries declined two basis points to 4.51%
- Germany’s 10-year yield declined four basis points to 2.54%
- Britain’s 10-year yield declined four basis points to 4.58%
Commodities
- Brent crude fell 0.3% to $76.32 a barrel
- Spot gold rose 0.5% to $2,772.13 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess, Winnie Hsu and Richard Henderson.
©2025 Bloomberg L.P.
