European markets are anticipated to open a slightly positive note today as investors grapple with the European Central Bank's steadfast dedication to maintaining restrictive rates for as long as needed. Furthermore, U.S. GDP data that exceeded expectations may also be a key determinant of market sentiment. Investors are eagerly anticipating Personal Consumption Expenditures (PCE)-based inflation details for December from the U.S.
Wall Street closed positively yesterday, buoyed by a new batch of earnings reports and updates on GDP, durable goods orders, and jobless claims. The Nasdaq Composite rose by 0.18 percent to conclude the day at 15,510.50, and the Dow Jones Industrial Average surged 0.64 percent to wrap up at 38,049.13.
Moderately positive sentiment pervaded European markets yesterday, as investors absorbed the ECB's aggressive posture and the better-than-forecast U.S. GDP. The pan-European Stoxx-50 climbed 0.37 percent. Both France's CAC 40 and Switzerland's SMI appreciated by 0.9 percent. Germany's DAX increased by 0.10 percent, while the United Kingdom's FTSE 100 saw a marginal gain of 0.03 percent.
Present indications from European stock futures hint at a mostly optimistic mood. The March SMI Futures have skyrocketed 0.81 percent. The February CAC 40 Futures have risen 0.57 percent. The March FTSE 100 Futures have bolstered by 0.41 percent. The March pan-European Stoxx 50 Futures have marginally improved by 0.07 percent. However, the March DAX Futures are trading 0.15 percent lower. Anticipating the PCE data update, American stock futures are in negative territory. The US 30 (DJIA) is trading 0.26 percent lower, while the US500 (S&P 500) is down by 0.30 percent.
Asian stock markets reflect mixed performance as the recent excitement over China's economic stimulus fades. South Korea's KOSPI and China's Shanghai Composite increased by 0.72 percent and 0.38 percent respectively. Bank of Japan's potential shift in monetary policy is causing apprehension, causing Japan's Nikkei 225 to decline by 1.1 percent. Hong Kong's Hang Seng and DJ New Zealand fell by 0.52 percent and 0.08 percent respectively.
The Dollar Index (DXY), which gauges the U.S. dollar's strength relative to six currencies, slipped 0.04 percent to conclude at 103.54, against the previous close of 103.57. Both the EUR/USD and the GBP/USD pairs decreased by 0.05 percent and 0.02 percent to trade at 1.0841 and 1.2706 respectively.
Gold maintained a robust stance above the flatline, unaffected by the stronger-than-projected U.S. GDP data and the hawking tone in the ECB's monetary policy review. Gold Futures for February settlement are trading at $2,021.30, which is 0.17 percent more than the last closing price of $2,017.80.
Crude oil prices edged lower as the likelihood of reduced tensions in the Red Sea is factored into the markets. Brent Crude Futures for March settlement fell 0.29 percent to trade at $82.19, while WTI Crude Futures for the same month declined by 0.50 percent to $76.97.
The Gfk Consumer Confidence figure for February from Germany is projected to be -24.5, compared to -25.1 previously. Similarly, France's Consumer Confidence reading for January is expected to rise slightly to 90 from 89 in the prior month.
This Friday's major earnings updates from the region include Volvo, Telia Company, SCA, Colgate-Palmolive, HEXPOL, Lonza Group, Billerud, KONE, 3I Group and Sartorius Stedim.
