Global stock indices on January 24 reflected mixed market sentiments amid a busy earnings season. European markets saw slight gains in Paris and Milan but declines in Frankfurt and London. In the U.S., main indices fluctuated. President Trump’s unexpected shift away from aggressive tariffs on China affected the dollar, which weakened against the euro. Earnings reports revealed surprises for luxury brands like Burberry, while companies like Ericsson and Texas Instruments faced disappointing results, impacting their stock prices.
Global Stock Indices Reflect Market Sentiment
On Friday, January 24, global stock indices appeared to be calmly assessing the first week of Donald Trump’s renewed presidency, coinciding with a bustling earnings season. In Europe, Paris experienced a slight uptick of 0.44%, while Milan saw a modest increase of 0.24%. Conversely, Frankfurt exhibited caution with a minor decline of 0.08%, and London faced a more significant drop of 0.73%. On Wall Street, the main indices fluctuated without a clear direction; around 3:50 PM, the Nasdaq and S&P 500 showed a slight increase of 0.07%, while the Dow Jones experienced a slight dip of 0.11%.
Florian Ielpo, head of macroeconomic research at Lombard Odier IM, noted, “Overall, the week has been rich in positive developments,” highlighting a growing sense of realism from Trump’s administration. Céline Weill-Alliel, a manager at Uzès Gestion, added that there was “a small wave of relief,” as current customs measures lack clarity and concrete details, according to AFP.
Tariff Uncertainty Lingers
In a surprising shift, President Trump expressed a preference against imposing tariffs on China during a Thursday evening interview, diverging from his previously aggressive stance toward the United States’ top economic competitor. When asked about potential negotiations with Chinese leader Xi Jinping regarding Taiwan and trade, Trump remarked, “I would prefer not to have to use (the tariffs). But it is a huge power over China.” This statement followed a softer approach Trump adopted after taking office, where he indicated a mere 10% increase on Chinese imports starting February 1, contrasting sharply with the 60% tariffs he promised during his campaign.
These developments have put pressure on the dollar, as investors anticipate lower inflation in the U.S., which could lead to rate cuts by the Federal Reserve. By around 3:50 PM, the dollar had fallen by 0.93% against the euro, trading at 1.0512 dollars per euro. Meanwhile, the yield on ten-year U.S. Treasury bonds was recorded at 4.61%, down from 4.64% the previous day.
Continued Focus on Earnings Season
As the earnings season heats up, market participants are keenly observing developments in both Europe and the United States. The British luxury brand Burberry, which embarked on an “emergency” refocus on its flagship products in November to address challenges, reported a decline in third-quarter sales that was less severe than analysts had predicted. This positive surprise sent Burberry’s stock soaring by 9.53% in London, lifting shares of other luxury brands across Europe. In Paris, LVMH increased by 1.87%, Hermès by 0.87%, L’Oréal by 1.10%, Christian Dior by 1.35%, and Kering by 4.49%. In Zurich, Moncler rose by 3.02%, and in Milan, Salvatore Ferragamo gained 4.38%.
On the other hand, Ericsson AB faced challenges, reporting fourth-quarter results that fell short of analyst expectations, leading to a 12.72% drop in its stock in Stockholm. Texas Instruments also struggled, experiencing a significant decline of 6.28% on the Nasdaq following disappointing profit forecasts for 2025.