European markets: futures signal continued rally amid inflation easing
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European equity futures climbed higher on Thursday, extending gains from the previous session. This upward momentum comes on the heels of positive inflation data from the U.S. and UK, suggesting moderating price pressures.
Futures performance ahead of the open
Euro STOXX 50 futures advanced by 0.7%, building on Wednesday’s 1% rise—the index’s most significant daily gain in over a week. Germany’s DAX futures gained 1.1%, while France’s CAC 40 and Britain’s FTSE 100 futures added 0.3% and 0.4%, respectively. The broad optimism reflects improved market sentiment driven by signs of easing inflation.
Corporate updates and sector highlights
Luxury conglomerate Richemont delivered robust third-quarter sales, exceeding market expectations. The positive performance underscores resilient demand in the luxury sector during the holiday season.
Automotive giant Stellantis reported a 9% drop in Q4 shipments, signaling potential headwinds for the industry. Meanwhile, Chinese officials and automakers are reportedly evaluating German auto factories slated for closure, with particular interest in Volkswagen’s facilities, according to Reuters.
In the semiconductor space, European chipmakers are poised for attention following Taiwan Semiconductor Manufacturing Company’s (TSMC) record-breaking Q4 profits. TSMC also forecast significant revenue growth for the first quarter, fueled by increasing demand for chips used in artificial intelligence applications.
Outlook for the trading day
With a strong start indicated by futures, European markets appear set to continue their upward trajectory. Investors will closely watch developments in key sectors, including luxury, automotive, and semiconductors, as well as ongoing inflation trends to gauge the sustainability of the current rally.
Futures performance ahead of the open
Euro STOXX 50 futures advanced by 0.7%, building on Wednesday’s 1% rise—the index’s most significant daily gain in over a week. Germany’s DAX futures gained 1.1%, while France’s CAC 40 and Britain’s FTSE 100 futures added 0.3% and 0.4%, respectively. The broad optimism reflects improved market sentiment driven by signs of easing inflation.
Corporate updates and sector highlights
Luxury conglomerate Richemont delivered robust third-quarter sales, exceeding market expectations. The positive performance underscores resilient demand in the luxury sector during the holiday season.
Automotive giant Stellantis reported a 9% drop in Q4 shipments, signaling potential headwinds for the industry. Meanwhile, Chinese officials and automakers are reportedly evaluating German auto factories slated for closure, with particular interest in Volkswagen’s facilities, according to Reuters.
In the semiconductor space, European chipmakers are poised for attention following Taiwan Semiconductor Manufacturing Company’s (TSMC) record-breaking Q4 profits. TSMC also forecast significant revenue growth for the first quarter, fueled by increasing demand for chips used in artificial intelligence applications.
Outlook for the trading day
With a strong start indicated by futures, European markets appear set to continue their upward trajectory. Investors will closely watch developments in key sectors, including luxury, automotive, and semiconductors, as well as ongoing inflation trends to gauge the sustainability of the current rally.