Markets Brace for a Mixed Bag of Global Financial Outcomes

With global markets stabilizing after the DeepSeek shock, focus shifts to monetary policies. The U.S. Fed maintained rates while the ECB and Bank of Canada may pursue rapid cuts amidst looming tariff threats from Trump. European stocks climb on strong ASML results with upcoming Apple earnings in focus.

The global markets are regaining their footing after the DeepSeek shock earlier this week, prompting renewed attention on monetary policy. Tech shares have stabilized, and traders now shift their gaze towards the series of rate decisions by central banks.

In the U.S., the Federal Reserve kept rates steady, as expected, with Jerome Powell's dovish remarks providing a counterbalance to the Fed's hawkish stance. This decision comes in contrast to rate cuts by Sweden's Riksbank and the Bank of Canada, although both continue to grapple with uncertainties and risks, such as inflation from U.S. tariffs.

As European traders look to the European Central Bank's decisions, they also face uncertainty from potential U.S. tariffs. President Donald Trump remains a wildcard, especially with his threats against European trade practices. In the meanwhile, European stocks, buoyed by strong performances such as ASML, brace for a busy earnings day with major companies reporting.

(With inputs from agencies.)