Stocks Rise on Earnings, Treasury Yields Boost Risk Sentiment

Key Points:

* Stocks advanced as earnings season gained momentum.
* Treasury yields retreated, enhancing risk appetite.
* Stoxx Europe 600 hit a record high on positive earnings reports.
* S&P 500 and Nasdaq 100 futures indicate gains on Wall Street.

Market Summary:

Global markets are regaining stability after the volatility caused by trade concerns. Investors are shifting focus to interest rates, economic growth, and corporate earnings. The 10-year Treasury yield declined after Treasury Secretary Scott Bessent expressed his commitment to reducing long-term borrowing costs.

European Markets:

The Stoxx Europe 600 closed at a record high, led by positive earnings from Societe Generale SA and AstraZeneca Plc. Danish shipping giant A.P. Moller-Maersk A/S surged on a share buyback announcement and growth projections. However, Soitec plummeted after cutting its outlook.

US Markets:

Futures on the S&P 500 and Nasdaq 100 pointed higher, suggesting continued gains after Wednesday's rally. Amazon.com Inc., Eli Lilly & Co., and The Hershey Co. are among the major US companies reporting earnings today.

Economic Data:

German factory orders rose strongly in December, indicating an improving outlook for the manufacturing sector. European retail sales and US jobless claims data will be released today, with the crucial payrolls report scheduled for tomorrow.

Currencies:

The dollar gained slightly, while the euro and British pound declined against the US currency.

Cryptocurrencies:

Both Bitcoin and Ether rose in value.

Bonds:

Treasury yields climbed slightly, with the 10-year yield reaching 4.44%.

Commodities:

Brent crude oil traded marginally higher, while spot gold declined.

Key Events:

* Eurozone retail sales (Thursday)
* UK rate decision (Thursday)
* US initial jobless claims (Thursday)
* Amazon earnings (Thursday)
* US nonfarm payrolls, unemployment, and University of Michigan consumer sentiment (Friday)