European Stocks Rise on Alibaba Rally, US Futures Subdued

European stocks advanced on Friday, extending a rally across Asian markets sparked by strong earnings from Chinese e-commerce giant Alibaba Group Holding Ltd.

Key Market Movements

* The Stoxx 600 Index gained 0.3%, led by robust earnings reports from Standard Chartered Plc and Air Liquide SA.
* Alibaba's 14% surge boosted Chinese technology stocks to their highest level since 2022.
* US stock futures were muted, with S&P 500 contracts up a modest 0.1%.

European Stock Market Overview

Stocks in Europe have enjoyed a positive start to the year, supported by resilient corporate profits and optimism over peace talks in Ukraine. However, concerns over tariffs and diplomatic tensions have tempered sentiment in recent days. Nonetheless, the Stoxx 600 Index is still on track for a 0.2% gain this week, marking its ninth consecutive advance.

Global Investment Trends

According to Bank of America Corp., approximately $4 billion flowed into European funds during the week ending February 19th, the largest inflow since February 2022. Strategist Michael Hartnett expressed a preference for global stocks over US counterparts, citing the attractiveness of markets like Germany, China, Japan, and South Korea amid improving business activity.

US Market Previews

In US premarket trading, Block Inc. and Akamai Technologies Inc. declined after issuing weak guidance. JPMorgan Chase & Co. strategists noted that profit outlooks for 2025 from US companies have been relatively subdued.

Currency and Economic Data

The euro weakened against the US dollar by 0.3%. Purchasing manager data revealed sluggish business activity in the Eurozone during February, reinforcing concerns about economic stagnation.

Investors are monitoring Germany's upcoming weekend election, hoping for a result that enables the Conservative front-runner to form a coalition capable of implementing economic reforms and easing borrowing rules.

Commodities

Gold extended its gain to an eighth consecutive week as geopolitical tensions and trade disputes fueled demand for the precious metal. Brent crude oil declined by 0.5%.