(Bloomberg) — European and US stock futures gained in line with Asian shares as traders looked ahead to a rate decision by the European Central Bank.
Most Read from Bloomberg
Euro Stoxx 50 and S&P 500 contracts advanced 0.3% each. The moves echoed a small bump in Asian share prices, which pushed a regional gauge around 0.2% higher. But liquidity was thin in region, with many of the biggest stock markets closed for the Lunar New Year holiday.
Investors had plenty to digest from US trading hours — but none of it pointed to a clear direction for stocks. A decision by the Federal Reserve to hold rates was widely expected, and earnings from International Business Machines Corp., Meta Platforms Inc., Microsoft Corp. and Tesla Inc. were mixed.
That left investors looking for local events to anchor their trading decisions during Asian hours, with an afternoon speech by Bank of Japan Deputy Governor Ryozo Himino parsed by traders for signs of a hawkish tone after the BOJ hiked rates last week.
The yen gained as much as 0.6% against the dollar as fast money traders lined up bets on the currency, according to an Asia-based FX trader. Shares in Japan moved up. But Himino’s remarks appeared to strike a cautious tone, with the central banker including the caveat that the BOJ would raise rates if the economic outlook is realized.
The European Central Bank is widely expected to cut rates by a quarter-point on Thursday, as it doubles down on efforts to boost the sluggish eurozone economy. The move will continue an aggressive easing cycle, which included four rate cuts in 2024.
READ: ECB Cut All But Certain With Price Goal in View: Decision Guide
Shifting bets on AI have defined the week in global markets, following a selloff sparked by news that Chinese AI startup DeepSeek had made much more progress than expected on its own model.
SoftBank Group Corp.’s shares became the latest to rumble from AI-related news, after reports that the company is considering an investment of up to $25 billion in OpenAI, its partner in the Project Stargate joint venture. SoftBank’s shares fell as much as 2.1% before paring some of their losses, but the news helped lift sentiment for tech stocks more broadly.
“The Softbank news provided some relief and the market is reacting positively as there is finally specific amount of money announced that makes the project more feasible,” said Takehiko Masuzawa, head of equity trading at Phillip Securities Japan.
Story Continues
