Global stock markets had a mixed performance on Thursday. Investors focused on central bank interest rate decisions, inflation data, and trade negotiations, while positive signals from earnings reports also influenced markets.
The Bank of Japan kept interest rates unchanged but raised its inflation forecast. This decision created cautious optimism about the economy. However, Japanese bond yields fell after a brief increase; the yen gave back its previous gains and traded sideways.
Nikkei index rose by over 1%On the other hand, thanks to better-than-expected earnings reports from Microsoft and Meta Platforms, Nasdaq futures gained 1.4%, and S&P 500 futures rose by over 1%. Experts commented, “These results are the kind many companies can only dream of.”
Strong earnings reports also stood out in European stock markets. Although the Stoxx 600 index traded sideways, banks in the region rose by over 1.5%. Positive results from Standard Chartered and Societe Generale contributed to this rise. However, weak PMI data from China weighed on Asian markets. The CSI 300 index fell by 1.8%, and the Hong Kong Stock Exchange dropped by 1.6%. The MSCI World Equity Index remained flat. The trade agreement between the US and South Korea, as well as Trump’s announcement of tariffs on India, were also closely watched by the markets. The Indian stock market closed slightly higher, while the Korean won gained 0.3%. Meanwhile, the Federal Reserve (Fed) kept interest rates unchanged as expected. However, Chairman Jerome Powell’s statements weakened expectations of a rate cut in September. The dollar index retreated from a two-month high to 98.7. The US economy grew stronger than expected in the second quarter, but details raised questions about the sustainability of growth. Trump’s trade policies continue to create uncertainty.
Finally, copper prices fell by 19.4%, while oil prices also experienced slight declines. This decline was influenced by the possibility of the EU withdrawing some of the tariffs it proposed.
