by Sujata Rao and John Viljoen
Global stocks rose Thursday, lifted by data showing cooling US core inflation and a slew of robust corporate earnings.
Europe’s Stoxx 600 climbed for a third day, with luxury goods maker Richemont soaring 18% after it reported a jump in jewelry sales. The report lifted an index of European luxury stocks the most since March 2022. Tech stocks also outperformed, with ASML Holding NV up as much as 4.9%, as a strong outlook from Taiwan Semiconductor Manufacturing Co. fueled hopes of resilient AI spending.
Futures contracts for the Nasdaq 100 were up 0.3%, supported by the upbeat report from TSMC, the main chipmaker to Apple Inc. and Nvidia Corp. S&P 500 futures rose 0.2%, after the benchmark’s 1.8% rally on Wednesday, its best day since the November election. Tech shares, including Nvidia, rose in premarket trade.
The gains came after data showed US core inflation came in at 0.2%, marking the first step down in six months and reinvigorating some bets that the Federal Reserve will lower interest rates further this year. Ten-year Treasury yields, which slid 10 basis points after the data, held steady on Thursday.
The latest figures from the US as well as Britain are “important to remind us that we shouldn’t be caught up in the flux of inflation concerns,” said Guy Miller, chief strategist at Zurich Insurance Co. “We have to expect market volatility, which will be a function of a new US administration coming in, but the economic fundamentals are still encouraging.”
Swap traders are back to fully pricing in a Fed rate reduction by July, reinstating bets that were dashed by stronger-than-expected December jobs data. But the renewed appetite for risk will be tested in coming days as the Fed and the Bank of Japan hand down policy decisions, and President-elect Donald Trump takes office.
The US will publish initial jobless claims and retail sales data later in the day, providing investors with a broader picture of the health of the world’s largest economy. Earnings are also due from Bank of America Corp. and Morgan Stanley, following blockbuster results from top US banks including JPMorgan Chase & Co and Goldman Sachs.
In currency markets, Bloomberg’s dollar index halted a two-day losing streak. The latest lackluster growth data from Britain underscored the divergence between the US economy and its peers in the developed world, knocking the pound lower against the greenback. The yen firmed, however, on a report that Bank of Japan officials see a good chance of a rate increase next week.
“The more favorable US economic outlook relative to other major economies continues to support the fundamental dollar uptrend,” Elias Haddad, a strategist at Brown Brothers Harriman, told clients.
Key events this week:
Some of the main moves in markets:
This story was produced with the assistance of Bloomberg Automation.
Copyright Bloomberg News
Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.
The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.
Wealth managers offer unique ideas for couples to grow closer emotionally and financially.
Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.
Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies
From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.