European stock markets rebounded on Thursday, although geopolitical tensions continued to weigh on sentiment throughout the week. The pan-European Stoxx 600 index declined slightly, with major benchmarks in Germany, France, and the UK also experiencing losses for the week. Despite this, Thursday’s positive close suggests investors may be reassessing their views on geopolitical tensions and the economic outlook, potentially leading to a positive weekly performance.
In Europe, big market cap companies like ASML and SAP saw a rebound on Thursday, thanks in part to Nvidia’s strong quarterly earnings. Meanwhile, consumer stocks struggled amid economic growth concerns, with LVMH, L’Oreal, and Hermes all experiencing declines. Defense stocks, on the other hand, rallied amid rising tensions between Ukraine and Russia.
In the US, stock markets were on track for weekly gains, supported by strong economic data, robust company earnings, and optimism around the Trump presidency. The Dow Jones, S&P 500, and Nasdaq all posted gains for the week. Sector rotations indicated a shift from tech giants to interest rate-sensitive sectors and those benefiting from a strong economy.
In the Asia-Pacific region, the ASX 200 reached a new high for the week, while Chinese stock markets struggled due to economic concerns. The Japanese Nikkei 225 was down over 1% for the week, impacted by a resurgence in the Yen.
Overall, global markets continue to navigate geopolitical tensions and economic concerns while also responding to positive economic data and company earnings reports. Attention remains on upcoming economic indicators, like manufacturing and service PMIs, as well as central bank policy decisions.
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