European Stocks Edge Near Record, US Futures Rise on AI Optimism
London, January 4, 2023 - Europe's key stock index, the Stoxx Europe 600, approached its September record high on Wednesday, rising 0.3% with less than one index point remaining. Futures on the S&P 500 and Nasdaq 100 also indicated continued gains, following the strong Wall Street rally over the past two sessions.
The positive sentiment was driven by optimism over increased artificial intelligence (AI) spending under US President Donald Trump. Asian tech stocks advanced after Trump's announcement of an investment push in AI.
However, Chinese shares declined after Trump suggested considering a 10% tariff on all goods from China. This underscores the challenges investors face in balancing hopes for growth against uncertainty over future tariffs.
Despite the potential tariff implications, market sentiment remains supportive due to Trump's pro-business policies. Healthcare and technology stocks saw significant gains in Europe, while miners underperformed due to concerns about the tariff impact on China's economy.
US Treasury yields stabilized after a slight decline in the previous session. The US dollar strengthened against major currencies, while the Chinese yuan weakened.
Key Market Highlights:
* Stocks:
* Stoxx Europe 600: +0.3%
* S&P 500 futures: +0.3%
* Nasdaq 100 futures: +0.7%
* Currencies:
* US dollar (DXY): Steady
* Euro: -0.1% vs. USD
* Chinese yuan: -0.2% vs. USD
* Commodities:
* Brent crude: -0.4%
* Spot gold: +0.2%
Upcoming Events:
* US Conference Board leading index: Wednesday
* Eurozone consumer confidence: Thursday
* Bank of Japan policy meeting: Friday
Disclaimer: This information is provided for informational purposes only and should not be considered investment advice.