Europe Stoxx 600 Set for Best Month in Two Yrs – Europe Market Wrap
Daily Dose, EU

Europe Stoxx 600 Set for Best Month in Two Yrs – Europe Market Wrap

Europe’s Stoxx 600 index headed for its best month in two years as strong earnings reports burnished the appeal of the region’s stocks over pricier Wall Street equities. The dollar rose ahead of Trump’s weekend tariff announcement.

The European benchmark rose 0.4%, on track for a 6.5% gain in January. Nasdaq 100 futures rose 0.8%, while S&P 500 contracts rose. Apple and Intel both surged more than 2% in premarket trading, capping off a turbulent week for technology.

With Trump preparing to impose his first wave of tariffs on Canada and Mexico on Saturday, a gauge of dollar strength was on track for its strongest week since mid-November. Treasuries sank on estimates that future levies would boost inflation and keep interest rates high, while implied volatility for the Canadian dollar and Mexican peso indicated wild swings ahead.

Meanwhile, reports from some of the largest technological businesses in the United States show that they are strong enough to overcome concerns about increased competition. Big tech results have dominated headlines this week after Chinese upstart DeepSeek rattled up markets with its lower-cost AI strategy.

Traders see more ECB easing, 83bps of cuts expected for 2025.

French CPI MoM NSA Prelim Actual -0.1% (Forecast 0%, Previous 0.2%) [Euro Fell]