January 22, 2025 at 05:12AM
US futures are sitting higher on the day after the stronger gains yesterday. One of the main spectacles of Trump’s inauguration was the lineup of the front row seats and it was clear what his priorities were. This picture says a lot without saying much at all.
S&P 500 futures are up another 0.3% today with tech shares leading the charge. Surprise, surprise. Nasdaq futures are up 0.7% and the mood music is also helped by stronger Netflix earnings after the close earlier.
Looking elsewhere, European indices are also still keeping in good spirits overall. The DAX remains at record highs while the CAC 40 is on the recovery path, trading to its highest since the end of September last year.
There is some slight apprehension in futures today as Trump threatens tariffs. However, the prospect of further rate cuts by the ECB is softening the blow for European stocks in general.
As for China, it’s not looking all too bright. The Shanghai Composite and CSI 300 indices have had a stuttering start to the year. And with Trump still wanting to squeeze more out of Beijing on the trade front, it’s been tough to find much optimism. That especially with the domestic economy also still not showing much signs of a stronger rebound.
The Shanghai Composite is down 0.8% and CSI 300 down 0.9% on the day currently. Meanwhile, the Hang Seng is down 1.3% as it slips back following the bounce from last week.
If anything, it highlights the contrasting fortunes and paths that US and Chinese equities are facing at this juncture.
This article was written by Justin Low at www.forexlive.com.
