European stock markets are poised for a solid opening on Wednesday, with a spotlight on the technology sector. This follows Netflix Inc.'s announcement of its largest quarterly subscriber increase to date and a significant joint venture involving OpenAI, Oracle, and Softbank, led by Trump, aimed at investing substantially in artificial intelligence infrastructure in the United States.
Trump described this initiative, known as "Stargate," as "the largest AI infrastructure project in history."
In Asia, stock performance varied. Technology shares surged in South Korea and Japan, while markets in China and Hong Kong saw declines. This downturn followed Trump's threat of imposing tariffs on the European Union and China to tackle trade imbalances and curb fentanyl trafficking.
In currency markets, the dollar weakened in Asian trading, boosting gold to an 11-week high. Meanwhile, oil prices remained relatively stable after a sharp decline in the previous session, prompted by concerns over potential oversupply linked to Trump’s energy emergency order.
On the previous day, U.S. stock markets closed higher. Bond yields fell amidst optimism about potential rate cuts, and the anticipated impacts of Trump's Inauguration Day policy announcements on tariffs appeared to be less severe than initially feared.
The Dow Jones Industrial Average rose by 1.2 percent, the S&P 500 increased by 0.9 percent, and the Nasdaq Composite, known for its focus on technology stocks, grew by 0.6 percent.
European markets followed suit, also ending higher on Tuesday, with financial and healthcare stocks leading the gains.
The pan-European STOXX 600 index inched up 0.4 percent. Germany's DAX added 0.3 percent, France's CAC 40 advanced by 0.5 percent, and the U.K.'s FTSE 100 increased by 0.3 percent.
