Stoxx 600 on track for 7th consecutive weekly gain amid profit-taking
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European stocks opened slightly lower on Friday as investors locked in profits following a strong week, but the Stoxx 600 remains on course for its seventh straight weekly gain.
Europe’s outperformance vs. S&P 500 gains traction
The Stoxx 600 is heading for its best relative performance against the S&P 500 in the first six weeks of a year since 2015. The rotation into european equities suggests investors are reassessing valuations and growth potential in the region after years of underperformance compared to the U.S. market.
Key drivers moving markets
U.S. nonfarm payrolls report later today will set the tone for global risk sentiment. Job growth is expected to have slowed in January due to wildfires in California and extreme cold weather. However, markets believe the federal reserve is unlikely to cut rates before the second half of the year. Corporate earnings remain in focus, with a mixed set of results shaping individual stock moves.
Earnings highlights
L’oréal (OR) shares are set to open lower after the cosmetics giant missed earnings expectations. The company posted its slowest quarterly revenue growth since the pandemic, citing weak demand from china and slowing sales in North America. Sabadell (SAB) raised its shareholder distribution target as it attempts to fend off a takeover bid from BBVA. The spanish lender also reported record net profit for the quarter and full year. Saab (SAAB_B) revised its medium-term targets for 2023-2027, with investors assessing the company’s strategic outlook. Despite today's slight dip, europe's momentum remains strong, supported by earnings resilience, favorable relative valuations, and signs of economic stabilization. market focus now turns to u.s. data and central bank policy expectations.
Europe’s outperformance vs. S&P 500 gains traction
The Stoxx 600 is heading for its best relative performance against the S&P 500 in the first six weeks of a year since 2015. The rotation into european equities suggests investors are reassessing valuations and growth potential in the region after years of underperformance compared to the U.S. market.
Key drivers moving markets
U.S. nonfarm payrolls report later today will set the tone for global risk sentiment. Job growth is expected to have slowed in January due to wildfires in California and extreme cold weather. However, markets believe the federal reserve is unlikely to cut rates before the second half of the year. Corporate earnings remain in focus, with a mixed set of results shaping individual stock moves.
Earnings highlights
L’oréal (OR) shares are set to open lower after the cosmetics giant missed earnings expectations. The company posted its slowest quarterly revenue growth since the pandemic, citing weak demand from china and slowing sales in North America. Sabadell (SAB) raised its shareholder distribution target as it attempts to fend off a takeover bid from BBVA. The spanish lender also reported record net profit for the quarter and full year. Saab (SAAB_B) revised its medium-term targets for 2023-2027, with investors assessing the company’s strategic outlook. Despite today's slight dip, europe's momentum remains strong, supported by earnings resilience, favorable relative valuations, and signs of economic stabilization. market focus now turns to u.s. data and central bank policy expectations.