The actions of Netflix (NFLX.O) soar nearly 15% in pre-market trading as the streaming giant added a record number of subscribers last quarterwhich allowed it to increase the prices of most of its service plans in the United States and other countries.
On Tuesday night, Trump announced that OpenAI, SoftBank and Oracle They will form a joint venture called Stargate and invest up to $500 billion in artificial intelligence infrastructure. SoftBank shares (9984.T) rose 11% in Tokyo, while Oracle (ORCL.N) gains more than 8% in pre-market trading.
The threat of new import tariffs from the United States remains, with Trump again promising to impose tariffs on the European Union bloc and mentioning the possibility of applying a 10% tariff on goods from China from February 1.
There was some relief, however, as many investors and foreign governments expected the tariffs to be part of a series of executive orders Trump signed on his first day in office.
“Trump seems more focused on domestic issues, and Europe has gotten a break,” said Eddie Kennedy, head of discretionary bespoke funds at Marlborough. “So I think a little rebound makes sense.”
European stocks have so far faced the threat of tariffs relatively calmly.
The pan-European STOXX 600 index (.STOXX) rose 0.7% on Wednesday, hitting a record intraday high. The German DAX (.GDAXI) also rose 1.1%, hitting a record high after gaining almost 7% so far this year.
Japan’s Nikkei (.N225) jumped 1.6%, tracking broad gains on Wall Street. However, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.2%, as declines in Chinese and Hong Kong stocks offset broad gains in other regions.
China’s blue chips (.CSI300) fell 0.9%, and Hong Kong’s Hang Seng Index (.HSI) lost 1.8%. This left the MSCI Global Index (.MIWO00000PUS) up 0.2%.
Treasury yields
Temporary relief in tariffs has supported a pullback in Treasury yields. The 10-year US Treasury yield was almost unchanged in Europe at 4.5704%, having fallen 4 basis points on Tuesday to 4.53%, its lowest level since January 2.
However, they remain about a percentage point higher since the Federal Reserve began cutting rates in September, reflecting a strong economy and a low probability of further large reductions by the Fed this year.
Futures imply a full 37 basis point easing by the Fed this year, with the first rate cut fully priced in for July.
Other markets
“With economic activity and job growth still resilient, the Fed has an opportunity to be very patient as it evaluates the new administration’s policies,” said Tim Duy, chief economist at SGH Macro Advisors.
The US Dollar Index stood at 107.97, near its two-week low of 107.86, after ending a volatile session on Tuesday with no significant changes.
The euro was virtually unchanged at $1.0430, just off a two-and-a-half-week high of $1.0435, while the Japanese yen fell 0.1% to 155.74 per dollar.
Bitcoin remained near its all-time high of $109,071, having risen 4% on Tuesday, after the top US markets regulator created a working group to develop a regulatory framework for crypto assets.
“The path for bitcoin to reach $120,000 is plausible,” said Billy Leung, investment strategist at Global X.
Oil prices rose slightly after falling more than 2% on Tuesday on Trump’s plans to boost energy production in the U.S. Brent crude rose 0.5% to $79.66 a barrel, while that US crude oil rose 0.4% to $76.15 per barrel.
Gold also resumed its climb towards its previous all-time high. Spot prices rose 0.5%, hitting a two-and-a-half-month high of $2.759 per ounce, after rising 1.4% on Tuesday.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
