Stocks Set to Climb as Tech Earnings Impress – Europe Market Wrap
Stocks rose as a slew of favourable earnings from technology companies bolstered the picture of a generally robust business sector.
The Nasdaq 100 futures rose about 0.7% in premarket trading, boosted by a rally among chipmakers and other tech firms. Netflix surged 10% in premarket trading after subscriber numbers surpassed expectations, joining the list of US companies that have reported earnings that have exceeded expectations this quarter. Tesla and IBM are scheduled to report later.
The Stoxx 600 index in Europe surged 1%, powered by a rise in ASML, Europe’s most valuable technology company, after orders more than tripled. SAP, a software major, also rose after announcing a reorganisation plan to raise earnings and strengthen its focus on artificial intelligence.
China’s proposal to stimulate its economy by lowering the reserve requirement ratio for banks boosted optimism, allowing Chinese banks to increase lending and government asset purchases. European commodities stocks soared, while the Hang Seng Index rose 3.6%.
Stronger than expected UK PMI data leads to sterling strengthening
Weaker than expected German and French Services & Composite data led to euro weakness
PBoC’s Governor Pan: China to cut Reserve Required Ratio by 0.5% February 5th.
Germany’s ifo Institute cuts growth outlook for 2024 to 0.7%, down from the 0.9% predicted in mid-December.
