MARKET WRAPS
Watch For:
Eurozone GDP, trade; trading updates for Safran, NatWest Group, Norwegian Air Shuttle, Capge
Opening Call:
European stock futures were higher, after Asia stocks fell. U.S. Treasurys held steady, the dollar rose. Gold rose and oil edged lower.
Equities:
European futures were higher as markets awaited for crucial economic data releases, including GDP and U.S. inflation data later in the day.
Overnight on Wall Street, investors drove stocks to records betting that artificial intelligence will change the way that American companies do business.
Glimpses of that potentially far-reaching impact have become evident in recent days-and Wall Street is spooked.
"It's 'shoot first, ask questions later,'" said David Wagner, portfolio manager and head of equity at Aptus Capital Advisors.
"One part of the market is a funding mechanism for another, and then the next day it switches."
Forex:
Sterling could remain sluggish against the euro but continue to outperform the dollar, said Validus Risk Management's Marc Cogliatti in a note.
U.K. political uncertainty surrounding Prime Minister Keir Starmer's future persists, while the Bank of England's narrow vote to keep interest rates unchanged last week suggests the next rate cut could come sooner than previously anticipated, he said.
However, the dollar "has its own issues stemming from capricious politics and an uncertain monetary policy outlook, which may continue to dominate for now."
Bonds:
Treasury yields held steady after declining, as U.S. data showed job markets were resilient while housing stuttered.
Jobless claims fell less than expected, but the decline indicates layoffs remain contained. January existing home sales contracted 8.4%, while economists surveyed by WSJ expected a 4.6% shrinkage.
A 30-year Treasury auction shows strong demand, pushing yields lower. Tomorrow, January 12-month CPI, both headline and core, are expected to slow to 2.5% from December's 2.7% and 2.6%, respectively.
Energy:
Oil consolidated in early trading hours. Middle East tensions remained a focus of attention, although their impact on oil prices has been limited, XS.com's Antonio Di Giacomo said.
Despite frictions between the U.S. and Iran and mixed signals following recent diplomatic communication, the market has shown greater sensitivity to fundamental supply-and-demand factors, the senior market analyst said.
There's been a deterioration in crude consumption prospects for 2026, the analyst said, citing forecasts pointing to more moderate demand growth.
Metals:
Gold is steady but could undergo a technical recovery after front-month gold futures settled down 2.9% on Thursday.
The precious metal has been under pressure following a strong U.S. employment report that raised the bar for further monetary-easing by the Fed, Tradu.com's Nikos Tzabouras said in an email.
However, gold's bullish outlook remains intact, with the path to fresh record highs still open, the senior market analyst said.
"Greenback weakness is set to persist amid ongoing macroeconomic uncertainty and rising deficits, fueling institutional and investor demand for gold," the analyst added.
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Iron ore declined as both supply and demand are currently subdued amid a seasonal off-peak period, Nanhua Futures analysts said in a commentary.
On the supply side, overseas shipments have declined seasonally, with disruptions to Australian exports from the rainy season potentially on the horizon.
On the demand side, steel mill margins remain reasonable, with hot metal output expected to gradually recover, though end-user steel consumption has entered a pre-Lunar New Year holiday lull.
Declining risk appetite and tightening liquidity before the holiday are also weighing on prices, Nanhua added.
TODAY'S TOP HEADLINES
Forget the 'Sell America' Trade. Here Comes 'Hedge America.'
The threat that foreigners could dump U.S. assets-or "Sell America"-has loomed over markets since President Trump returned to office last year and upended the world order.
The slide in the dollar to multiyear lows is the clearest sign that foreigners are nervous about the U.S., where they have invested $36 trillion into stocks and long-term bonds. Foreign purchases of U.S. Treasurys have slowed, and some investors, like European pension funds, have turned to sellers.
Russia Is Blocking WhatsApp to Boost Its Own Messaging App
Russia is restricting access to WhatsApp as it accelerates its campaign to shift Russians away from Western-based messaging platforms outside its control and onto homegrown equivalents approved by the government.
The Kremlin on Thursday confirmed it was blocking WhatsApp. It also is throttling Telegram, now based in the United Arab Emirates, which is widely used by Russian soldiers. It has said that companies that own platforms operating inside Russia, including Telegram and WhatsApp, are violating Russian law by refusing to comply with a range of restrictions.
Applied Materials Profit Rises on Soaring AI Demand
Applied Materials logged higher profit in the fiscal first quarter as artificial-intelligence computing demand soars.
Profit jumped 70% to $2.03 billion, or $2.54 a share, in the quarter ended in January, compared with $1.19 billion, or $1.45 a share, a year earlier.
Goldman Sachs's Top Lawyer to Step Down Following Latest Epstein Documents
Goldman Sachs general counsel Kathryn Ruemmler will step down after the Jeffrey Epstein files showed she had remained a close ally of the convicted sex offender through his 2019 arrest.
Goldman said Ruemmler, 54, would resign as of June 30.
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Expected Major Events for Friday
00:01/UK: Jan BRC-Sensormatic IQ Footfall Monitor
00:01/UK: Jan Scottish Retail Sales Monitor
07:00/TUR: Dec Balance of Payments
07:00/ROM: Dec Industrial production
07:00/GER: Jan WPI
07:30/SWI: Jan CPI
07:30/HUN: Dec Construction
08:00/CZE: Jan CPI
08:00/SVK: 4Q Flash estimate of total employment
08:00/SVK: 4Q Flash estimate of GDP
08:00/SPN: Jan CPI
09:00/CZE: Dec Monthly Balance of Payments
09:00/BUL: 4Q Flash Estimate GDP
09:00/POL: Jan CPI
09:00/BUL: 4Q Labour force survey
10:00/CYP: 4Q GDP (Flash Estimate)
10:00/EU: 4Q Flash Estimate GDP
10:00/EU: 4Q Flash estimate employment EU and euro area
10:00/EU: Dec Foreign trade
13:00/POL: Dec Balance of Payments
15:59/UKR: Dec Trade
All times in GMT. Powered by Onclusive and Dow Jones.
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(END) Dow Jones Newswires
02-13-26 0015ET
