Global markets are navigating key economic events and corporate earnings, with European stocks holding an upward bias ahead of the European Central Bank (ECB) meeting, while U.S. equities react to the latest Federal Reserve (FOMC) decision. The Russell 2000 index outperformed post-FOMC, signaling optimism in small-cap stocks.

Big-Tech Earnings: Mixed Results

Tech giants delivered varied results:

• Meta (META) climbed +2.4% following strong performance in its advertising business.
• Microsoft (MSFT) fell -3.5%, as investors reacted to concerns about cloud growth.
• Tesla (TSLA) gained +1.7%, despite ongoing margin pressures.

Currency Markets & Central Banks

• The U.S. Dollar (USD) remained steady post-FOMC, while the Euro (EUR) awaits the ECB’s decision, with a 25bps rate cut widely expected.
• USD/JPY dipped below 154.50, as traders assess the Bank of Japan’s next steps.
• Fed Chair Jerome Powell supported bond markets, while weaker-than-expected Eurozone GDP had little effect on German Bunds ahead of the ECB announcement.

Commodities: Oil Slips, Base Metals Edge Higher

• Crude oil declined amid tariff concerns and growth fears, with investors worried about global demand.
• Base metals managed modest gains, even as China remained on holiday, limiting market participation.

Looking Ahead: Key Events & Earnings

Markets now turn their focus to a packed economic calendar:

• U.S. Data Releases: Q4 GDP Advance, PCE Prices Advance, and Jobless Claims.
• Japan: Tokyo CPI and Retail Sales.
• Central Bank Announcements: ECB and South African Reserve Bank (SARB), along with comments from ECB President Christine Lagarde.

Major Earnings on Deck:

• Apple (AAPL), Intel (INTC), Visa (V), U.S. Steel (X), UPS (UPS), Mastercard (MA), Blackstone (BX), Caterpillar (CAT), Cigna (CI), and Mobileye (MBLY).

With crucial economic data and major earnings reports ahead, markets will be closely watching for signals on global growth, inflation, and central bank policy shifts. Stay tuned for updates!