ASIA/PACIFIC
The Australian stock market closed at record highs on Thursday, extending gains from the previous session, lifted by energy and retail companies. Softer inflation data released on Wednesday boosted hopes for interest rate cuts by the Reserve Bank. Asian stocks mostly rose in thin holiday trading supported by optimism in the tech sector following positive tech earnings from the U.S. Japanese stocks climbed for the second straight day. Bank of Japan Deputy Governor Ryozo Himino reportedly said that the central bank would continue to raise interest rates if the “economy and prices move in line with the bank’s forecasts.” South Korean, Hong Kong and Chinese markets were closed for the Lunar New Year holiday.
EUROPE
European markets closed in the green after the European Central Bank (ECB) Governing Council announced its decision to reduce its three key interest rates by another 25 basis points, its fifth cut since the bank began easing monetary policy last June. Deutsche Bank kicked off a flurry of earnings, reporting a sharper-than-expected fall in fourth-quarter profit, driving its shares down 3.22%. Germany’s banking giant also abandoned a key cost target but announced plans to buy back 750 million euros in shares.
AMERICAS
S&P 500 futures rose Thursday as Wall Street digested recent quarterly results from a slew of megacap tech companies. Investors are coming off a losing session after the Federal Reserve held steady on rates and signaled that it is in no rush to cut interest rates. Data on fourth-quarter GDP and Personal Consumption Expenditure are likely to make a significant impact on the mood.
AFRICA
A new report by the Central Bank of Nigeria reveals that 83.5% of households and 80.6% of businesses perceive inflation rate as high, reflecting the persistent economic pressures faced by consumers and enterprises alike. The country’s external debt burden is set to worsen amid further naira devaluation, PwC said in its “2025 Nigeria Budget and Economic Outlook.”
MIDDLE EAST
Gulf equities rose in early trade on Thursday ahead of corporate earnings announcement, although the Saudi index bucked the regional trend to trade lower. In Q4 2024, foreign investors, including institutional and retail investors, purchased a net of $3 billion of GCC stocks, according to Kamco Invest. Robust IPO activity, positive economic data and oil prices drove strong demand the asset management firm said. On the sukuk front, sukuk default rates globally stood at only 0.19% of all sukuk issued as of the end of 2024 Fitch Ratings said.
COMMODITIES
GOLD
Spot gold was up 0.7% at $2,776.79 per ounce, as of 1020 GMT. U.S. gold futures climbed 0.8% to $2,791.70, according to Reuters.
OIL
Brent crude futures were down 43 cents, or 0.6%, at $76.15 a barrel while U.S. crude futures
were down 46 cents, also 0.6%, to $72.16, after official data indicated a rise in U.S. inventories.
Investors are also looking ahead to a meeting by the Organization of the Petroleum Exporting Countries and its allies including Russia, together called OPEC+, scheduled for Feb. 3.