Stocks and US Futures Rise as Earnings Roll In: Markets Wrap
(Bloomberg) — Stocks rose as the busiest day of the earnings season got underway, with lower Treasury yields boosting risk sentiment in the absence of any new developments on the tariff front.
The Stoxx Europe 600 climbed to a record high on a closing basis amid a slew of mostly-positive profit reports. UK stocks outperformed and the pound fell on expectations the Bank of England is set to cut interest rates later Thursday. Futures on the S&P 500 and Nasdaq 100 edged higher, suggesting Wall Street is set to build on Wednesday’s gains. A gauge of the dollar was steady.
A semblance of calm is returning to global markets after the volatility sparked by the Trump administration’s trade policies. That’s allowing investors to refocus on the outlook for interest rates, economic growth and corporate earnings.
The 10-year Treasury yield hovered near the lowest since mid-December after Treasury Secretary Scott Bessent said his focus is to bring down long-term borrowing costs.
“When you have positive earnings growth, bond yields coming down, it is still positive for equity markets despite all of these negative headlines” around trade, Charles-Henry Monchau, chief investment officer at Banque Syz & Co., said on Bloomberg TV.
Societe Generale SA led European bank stocks higher after an earnings beat. AstraZeneca Plc gained after the drugmaker reported better-than-expected earnings and alleviated concern around a Chinese probe into its business. Danish transport giant A. P. Moller-Maersk A/S jumped after announcing a $2 billion buyback and forecasting growth in the global container market.
Meanwhile, shares in Soitec plummeted 29% after the semiconductor parts-maker cut its full year outlook amid a worsening car industry. Kering SA fell after the luxury-goods maker said that it’s ending its collaboration with Sabato De Sarno, the creative director of its Gucci label.
In economic news, German factory orders surged in December, adding to evidence that the outlook for the beleaguered sector may be improving. European retail sales and US data on jobless claims will also on traders’ radar today, with the all-important payrolls report due tomorrow.
Amazon.com Inc., Eli Lilly & Co. and The Hershey Co. are among major US companies set to report earnings today.
Key events this week:
- Eurozone retail sales, Thursday
- UK rate decision, Thursday
- US initial jobless claims, Thursday
- Fed’s Christopher Waller, Lorie Logan speak, Thursday
- Amazon earnings, Thursday
- US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
- Fed’s Michelle Bowman, Adriana Kugler speak, Friday
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.8% as of 9:03 a.m. London time
- S&P 500 futures rose 0.3%
- Nasdaq 100 futures rose 0.2%
- Futures on the Dow Jones Industrial Average rose 0.2%
- The MSCI Asia Pacific Index rose 0.3%
- The MSCI Emerging Markets Index rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro fell 0.4% to $1.0366
- The Japanese yen was little changed at 152.58 per dollar
- The offshore yuan fell 0.1% to 7.2915 per dollar
- The British pound fell 0.4% to $1.2452
Cryptocurrencies
- Bitcoin rose 1.4% to $98,285.32
- Ether rose 1.7% to $2,835.13
Bonds
- The yield on 10-year Treasuries advanced three basis points to 4.44%
- Germany’s 10-year yield advanced two basis points to 2.39%
- Britain’s 10-year yield advanced two basis points to 4.45%
Commodities
- Brent crude rose 0.2% to $74.75 a barrel
- Spot gold fell 0.4% to $2,856.59 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Winnie Hsu and Chiranjivi Chakraborty.
©2025 Bloomberg L.P.
