(Updates with ECB rate decision, US premarket trading)
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Futures point to rise on Wall St after mixed 'Mag 7'
earnings
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Euro dips after ECB rate cut
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Fed holds rates; Powell says no rush to cut rates again
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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)