Global stocks surged on Thursday following Switzerland’s interest-rate cut, sparking optimism for further policy easing in developed countries. The move by the Swiss National Bank, the second rate cut this year, boosted investor confidence and led to gains in markets across Europe and the US.
US futures contracts indicated a positive opening for Wall Street, with the S&P 500 hitting a record high on Tuesday. Europe’s Stoxx 600 index and Zurich’s SMI index also saw gains, while France’s Cac 40 climbed after a successful government bond auction.
The Swiss franc weakened against major currencies after the rate cut, while US and German bonds saw a decline. Focus now shifts to the Bank of England’s policy meeting, which could signal a rate cut for the UK in the near future.
Tech stocks led the gains in both European and US markets, with companies like Nvidia Corp. and ASM International NV seeing significant increases in their stock prices. The ongoing AI frenzy and strong economic growth are expected to support corporate earnings, particularly in the technology sector.
Traders will be keeping an eye on US weekly jobless claims data and Federal Reserve speakers later in the day. Key events for the week include Eurozone consumer confidence, UK BOE rate decision, and US housing starts and jobless claims data.
Overall, the positive sentiment in global markets is driven by expectations of further policy easing and strong corporate earnings, particularly in the technology sector.
