financetom
World
financetom
/
World
/
GLOBAL MARKETS-Stocks cheer megacap earnings; euro dips after ECB rate cut
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
GLOBAL MARKETS-Stocks cheer megacap earnings; euro dips after ECB rate cut
Jan 30, 2025 5:54 AM

(Updates with ECB rate decision, US premarket trading)

*

Futures point to rise on Wall St after mixed 'Mag 7'

earnings

*

Euro dips after ECB rate cut

*

Fed holds rates; Powell says no rush to cut rates again

*

Oil dips as nerves kick in over Trump tariffs

By Kevin Buckland and Amanda Cooper

TOKYO/LONDON, Jan 30 (Reuters) - Wall Street shares

looked set for more gains on Thursday, as investors cheered

earnings from Meta, but shunned Microsoft ( MSFT ),

while the dollar was steady against most other currencies after

the Federal Reserve left rates unchanged.

The exception was the yen, which strengthened across the

board, as expectations mount for the Bank of Japan to keep

raising interest rates while other central banks cut.

The European Central Bank cut interest rates as expected on

Thursday and reiterated that euro zone inflation is increasingly

under control despite concerns about global trade, leaving the

euro a touch weaker on the day.

The U.S. central bank, meanwhile, held rates steady on

Wednesday, also in line with expectations, with Fed Chair Jerome

Powell saying there would be no rush to cut them again.

President Donald Trump's policies remain a risk for the

Fed's policy outlook, and Saturday is likely to see new tariffs

slapped on Canada, Mexico and possibly China.

U.S. stock index futures rose 0.5-0.8%,

pointing to an upbeat start for the technology-heavy Nasdaq

, which fell 0.5% on Wednesday, as did the S&P 500

.

The first earnings from the group of so-called "Magnificent

Seven" megacap tech stocks were a mixed bag.

Microsoft ( MSFT ) beat quarterly revenue estimates, while

Tesla's fourth-quarter profit margin missed

expectations. Meta forecast first-quarter revenue below

market estimates. Apple ( AAPL ) reports results later Thursday.

Microsoft ( MSFT ) shares fell 4% in premarket trading, while those

in Meta and Tesla rose 1.9% and 3.3%, respectively.

The results did little to further the debate on Chinese

startup DeepSeek's potential threat to U.S. dominance in

artificial intelligence, and the big spending behind it -

questions that triggered a rout in global tech stocks on Monday.

"Microsoft ( MSFT ), Tesla, and Meta are all making massive AI

investments, but investors are now demanding real results,"

Jacob Falconcrone, Saxo chief investment strategist for Europe,

said.

In Europe, the STOXX 600 hit a new record high,

rising 0.5%, in a heavy earnings day.

Some of the big names reporting results included lenders

Deutsche Bank, BBVA and CaixaBank

, along with energy producer Shell and

retailer H&M.

In the foreign exchange market, the dollar held steady

against most other major currencies, with the euro

down 0.1% at $1.0407 after the ECB rate decision.

"Policymakers appear not to have wanted to 'rock the boat'

this time around, and are unlikely to want to do so moving

forwards, with a predictable pace of 25-basis-point cuts at each

of the next few meetings remaining the base case, until the

Governing Council has moved the deposit rate back to neutral,"

Pepperstone strategist Michael Brown said.

Sterling, meanwhile, was flat at $1.2442.

The yen, however, strengthened about 0.7% to 154.0 per

dollar with Bank of Japan Deputy Governor Ryozo Himino

saying in a speech that the central bank will continue to raise

interest rates if the economy and prices move in line with its

forecasts.

Traders currently expect one more quarter-point increase

this year, potentially as soon as July.

Oil prices fell, as traders remained nervous about this

weekend's Feb. 1 deadline by which Trump has said he will impose

tariffs on Canada and Mexico, the two largest suppliers of crude

to the United States.

U.S. crude futures eased 0.2% to $72.48 a barrel,

while Brent crude futures dipped 0.1% to $76.50.

(Additional reporting by Kevin Buckland in Tokyo. Editing by

Hugh Lawson and Mark Potter)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
EMERGING MARKETS-Latin American currencies decline, tracking falling commodity prices
EMERGING MARKETS-Latin American currencies decline, tracking falling commodity prices
Jul 23, 2024
* Brazil raises primary deficit forecast * Mexico's peso leads declines in Latin America * Latin American stocks down 1.6% (Updated at 3:30 p.m. EDT/1930 GMT) By Johann M Cherian and Shashwat Chauhan July 23 (Reuters) - Most currencies in resource-rich Latin America slipped on Tuesday, tracking weakness in commodities prices, while investor jitters about the outcome of U.S. elections...
Dollar firms as commodities slide and carry unwinds
Dollar firms as commodities slide and carry unwinds
Jul 23, 2024
SINGAPORE (Reuters) - Commodity currencies touched multi-week lows on Wednesday tracking weakness in Chinese demand, while the yen has surged as short-sellers bail out ahead of a central bank meeting. Purchasing managers' index figures will be particularly watched in Europe later in the session to see whether they support bets on two European rate cuts by the end of January....
FOREX-Dollar firms as commodities slide and carry unwinds
FOREX-Dollar firms as commodities slide and carry unwinds
Jul 23, 2024
SINGAPORE, July 24 (Reuters) - Commodity currencies touched multi-week lows on Wednesday tracking weakness in Chinese demand, while the yen has surged as short-sellers bail out ahead of a central bank meeting. Purchasing managers' index figures will be particularly watched in Europe later in the session to see whether they support bets on two European rate cuts by the end...
Morning Bid: Big tech in focus, Harris neutralizes Trump's lead in poll
Morning Bid: Big tech in focus, Harris neutralizes Trump's lead in poll
Jul 23, 2024
NEW YORK (Reuters) - A look at the day ahead in Asian markets by Alden Bentley Markets were subdued ahead of second quarter earnings from Alphabet and Tesla released after the close of regular trade on Tuesday. The first of the market-leading mega caps to report left a mixed picture for after-hours trade with scope to spill across time zones...
Copyright 2023-2025 - www.financetom.com All Rights Reserved