Asian and European Stocks Rise on Tech Rebound, Fed Decision Looms
Asian stocks and European equity futures tracked Wall Street's tech-led recovery, as investors shifted focus to the upcoming Federal Reserve interest rate decision and earnings from mega-cap US companies.
Equity Markets
Japanese, Australian, and Indian stocks advanced, while most other regional markets remained closed for Lunar New Year holidays. US futures held steady after Tuesday's surge in the S&P 500 (0.9%) and Nasdaq 100 (1.6%), driven by Nvidia's 8.9% rally following its record one-day value loss.
The Week Ahead
Investor attention turns to the Fed rate decision on Wednesday, with policymakers expected to leave interest rates unchanged. Bond traders remain hopeful for signals of a potential rate cut in March.
Earnings from Big Tech companies starting Wednesday will also influence market sentiment. Analysts anticipate slower growth for the "Magnificent Seven" tech giants, including lower profits than the rest of the market.
Economic Data
In Australia, core inflation eased more than expected in Q4 2024, prompting a decline in the Australian dollar.
Corporate News
Sony Group appointed Hiroki Totoki as its new CEO, effective April 1. Apple is reportedly collaborating with SpaceX and T-Mobile to integrate Starlink support into its latest iPhone software.
Other Key Events
* Tesla, Microsoft, Meta, and ASML earnings (Wednesday)
* Eurozone ECB rate decision and economic data (Thursday)
* US GDP and unemployment data (Thursday)
* Apple and Deutsche Bank earnings (Thursday)
* US personal income and spending data (Friday)
Market Movers
* Stocks: S&P 500 futures slightly changed, Topix up 0.5%, Euro Stoxx 50 futures up 0.1%
* Currencies: Dollar Spot Index down 0.1%, Euro steady at $1.0438, Yen up 0.3% to 155.10/$
* Cryptocurrencies: Bitcoin up 1.9% to $12,234.14, Ether up 2.3% to $3,122.84
* Bonds: 10-year Treasury yield down 1 basis point to 4.52%
* Commodities: WTI crude down 0.2% to $73.62/barrel, Gold steady