Today, investors focused on the US Producer Price Index after US retail sales dropped, unexpectedly boosting stocks.
This paradox shows how bad news can sometimes fuel market optimism, especially if it hints at potential Federal Reserve easing.
Treasury yields climbed, reversing Thursday’s fall, amid expectations of a Fed rate cut in June. The S&P 500 set a record high, erasing this week’s earlier losses.
European markets saw mining stocks, like Glencore and Anglo American, jump over 3% due to renewed optimism in China’s metal demand.
China’s Lunar New Year travel surge, with over 61 million train trips in six days, signals potential consumption growth.
This marked the highest travel volume in five years, up 61% from last year. Banco Santander increased bonuses for its investment bankers after achieving record profits.
This 10% average bonus hike aligns with Santander’s US expansion, including hiring from Credit Suisse.
Santander reported a record €11.1 billion profit in 2023, highlighting its strong US corporate and investment banking performance.
This move contrasts with other European banks, which are likely reducing bonuses after a tough transaction year.
In the UK, January retail sales surged by 3.4%, the biggest rise since April 2021, signaling economic resilience.
This was the largest increase outside pandemic times since 1996, beating the 1.5% prediction.
US futures mostly rose, alongside European stocks. Asian markets ended higher, despite China’s New Year’s closure.
US 10-year bond rates increased, while WTI oil fell. However, gold and bitcoin gained, with bitcoin under $52,000.
This broad activity reflects diverse global market dynamics, highlighting shifts in investor focus and economic outlooks.