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Futures on U.S. and European stock indices returned to growth, overcoming a tense earnings season session. A decline in U.S. Treasury yields increased risk appetite in the absence of new trade tensions from the White House. Many companies exceeded analysts' expectations, creating a positive backdrop for investors. Strengthening confidence in favorable financial results continues to drive stock index growth.
As noted earlier, the decline in Treasury yields also had a positive impact on stock indices. Lower interest rates make equities more attractive to investors, increasing demand for risk assets. This scenario is supported by expectations of higher overall market liquidity due to anticipated easing monetary conditions in the future. However, the market remains sensitive to geopolitical risks and changes in economic policy.
The Stoxx Europe 600 Index closed at a record high, followed by Asian indices climbing to a seven-week high. Futures on the S&P 500 and Nasdaq 100 also gained momentum.
A sense of stability is gradually returning to global markets after the volatility sparked by the Trump administration's trade policies earlier in the week. This shift allows investors to refocus on interest rate outlooks, economic growth, and corporate earnings.
Among the European companies reporting today, Societe Generale SA and AstraZeneca Plc saw gains after posting earnings that exceeded expectations. Meanwhile, Kering SA declined following the announcement of Gucci's creative director Sabato De Sarno's departure after just two years.
According to today's data, Germany's industrial orders saw a sharp increase in December, further evidence that the outlook for the country's struggling manufacturing sector may be improving. Increased demand is likely driven by strengthened production and supply chain optimizations, fostering a positive investment climate in the sector. Economists highlight that this trend may indicate companies are ramping up production capacity planning in response to market needs. The role of new technologies and innovation is also emphasized, as they enhance production efficiency. Additionally, growth in orders could boost industrial employment and wage growth, which in turn may support consumer spending and overall economic activity.
Later on Thursday, the Bank of England is expected to cut its key interest rate. Meanwhile, U.S. jobless claims data today and the critical nonfarm payrolls report tomorrow will also be closely watched by traders.
Demand for the S&P 500 remains high. The key task for buyers today will be to break through the $6079 resistance level. This would extend the upward trend and open the way toward a move to $6092. Another critical target for bulls will be holding $6107, which would further strengthen buyers' positions.
On the other hand, if risk appetite weakens, buyers must defend the $6069 level. A breakdown below this mark would push the index back to $6058 and could pave the way for a deeper decline toward $6047.
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