Global stock markets and U.S. equity futures nudged up after another trading day dominated by artificial-intelligence anxieties on Wednesday. Asian equity indexes mostly gained, while European software and financial services stocks, many of which took a beating from traders concerned by competition from AI, largely steadied.
The dollar held higher against other currencies after data released Wednesday showed more jobs were added to the U.S. economy in January than investors anticipated. The hot non-farms payroll print–paired with a drop in unemployment–cooled expectations of a near-term Federal Reserve rate cut, supporting the dollar while easing precious metals prices.
U.S.-Iran tensions continued to simmer, as the U.S. move to send a second aircraft carrier strike group to the Middle East gave oil traders jitters and sent crude prices higher.
–U.S. futures nudged higher in Early European trade after AI competition concerns crept through markets yesterday. Futures tied to the Dow Jones Industrial Average gained 0.3% after the index snapped a three day winning streak Wednesday, while the S&P 500 also rose 0.3% premarket. The tech-heavy Nasdaq climbed 0.25% premarket.
–Asian shares closed mostly higher. South Korea’s Kospi extended gains for a fourth straight session as it hit another record high, up 3.1%, led by Samsung Electronics, which climbed 6.4%. The index is now up over 35% over the last three months.
China mainland stocks advanced, with ChiNext up 1.3%, while Shenzhen and Shanghai rose 0.5% and 0.1%, respectively. In Hong Kong, the Hang Seng fell nearly 1.0%, dragged down by Lenovo, which dropped over 5% after a weaker-than-expected third-quarter net profit. Japan’s Nikkei closed flat, showing little movement. SoftBank Group swung to profit in earnings announced after the market close, as the tech investment group’s stake in ChatGPT maker OpenAI gave a $4.2 billion boost to the company’s earnings.
–European blue-chip indexes opened in the green as financials and software stocks recouped some recent losses. The French CAC 40 jumped 1.4% at the open as luxury stocks that dominate the index rallied. Hermes was up 2.6%, while LVMH rose 1.4%. The German DAX was up 1.1%, led by a 6.2% gain for Siemens after the industrial company raised its 2026 outlook. Mercedes-Benz fell 4.3% after the carmaker announced earnings, dragging down peers’ shares. In Milan, the FTSE MIB rose 0.9% as financials stocks recouped some of their losses from the last session. Banks also pushed Spain’s IBEX 35 higher, while the FTSE 100 climbed 0.4% in London. Asset manager Schroders sped out the gates, surging close to 30% after announcing it would be taken over by U.S. peer Nuveen.
–The dollar held higher after Wednesday’s jobs data prompted markets to scale back expectations for interest-rate cuts by the Federal Reserve. However, President Trump prevented the dollar from rising more meaningfully after he called for further rate cuts, citing the strong job data, Commerzbank’s Michael Pfister said in a note. This contradicts economic theory and highlights why the Fed could cut rates more than the market expects, he said. The DXY dollar index rose 0.1% to 96.901. Sterling held steady against the dollar and the euro, trading flat at $1.3626. The euro was flat at 0.8709 pounds.
–U.S. Treasury yields edged marginally lower in Asian trade, reversing a rise sparked by investors selling on Wednesday’s jobs data. “Overall, while the January report was undeniably strong, the broader trend continues to signal a structural slowdown in U.S. employment growth,” Danske Bank’s Mohamad Al-Saraf said in a note. Thursday’s session will feature a $25 billion auction of 30-year bonds. The two- and 10-year Treasury yields fell 0.4 basis points to 3.506% and 4.178%, respectively, according to Tradeweb data.
Italy’s auction of 6.25 billion euros in 2029-, 2032- and 2033-dated nominal government bonds, or BTPs, will round off this week’s debt issuance in the eurozone. Solid demand at eurozone bond auctions and syndications bodes well for the Italian debt sale, especially as Italian bonds have been benefiting from strong investor appetite for quite some time. The 10-year Italian BTP-German Bund yield spread closed at 61.4 basis points on Wednesday, having come down from 67bps at the beginning of the year, according to LSEG data.
–Bitcoin fell, following U.S. equities lower to remain below the $70,000 mark. The cryptocurrency slipped 0.9% to $67,197 in early European trade, LSEG data show.
–Oil prices rose in early trading as tensions between the U.S. and Iran kept markets on edge. Brent crude was up 0.3% to $69.63 a barrel, while WTI gained 0.4% to $64.30 a barrel after the Pentagon told a second aircraft carrier strike group to prepare to deploy to the Middle East. Meanwhile, the latest EIA report showed U.S. crude oil stocks rose by a staggering 8.5 million barrels last week as production recovered from winter storm disruptions and imports rose. “While crude has posted gains in nearly every week this year due to recurring geopolitical risks, data showed US inventories surged to the highest level since June, reinforcing expectations of ample supply,” said Soojin Kim from MUFG.
–Gold prices eased in early trading, with New York futures holding below $5,100 on reduced expectations for near-term Fed rate cuts. “The renewed focus on incoming economic data suggests a degree of normalization following the recent volatility spike, while the upcoming Lunar New Year holiday in China may further dampen risk appetite and liquidity,” analysts at Saxo Bank said. Gold futures fell 0.3% to $5,082.50 a troy ounce, while silver was down 0.9% to $83.16 an ounce. The U.S. dollar index is flat at 96.88.
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