EU Mid-Market Update Summary
European equities advanced, driven by robust U.S. payroll data and strong Q4 earnings, with S&P 500 growth exceeding expectations at nearly +13% as over two-thirds of companies reported. However, UK GDP growth fell short, rising only 0.1% q/q, affecting Bank of England rate-cut expectations, now at 62% for March. Gold prices softened below $5,100/oz amid positive U.S. economic signals, impacting Fed rate cut speculation. Notably, SoftBank confirmed no additional investment in OpenAI post its $40 billion stake. Cisco announced price hikes to counter expected margin compression due to rising memory costs, maintaining resilient demand for AI and networking upgrades. Noteworthy earnings included Siemens’ strong performance and Hermès’ 9.8% revenue growth. The market is closely observing UK political stability and EU competitiveness measures, while global tensions continue, with Russia reportedly sending oil to Cuba. Overall, market sentiment remains supportive amid ongoing earnings and M&A developments.
