Market Surge: European Stocks Rebound with Profit Boost

European stocks broke a four-day losing streak with strong earnings reports. The dollar strengthened after U.S. President Trump dismissed rumors of firing Fed head Jerome Powell. Optimism grew amid promising U.S. retail data, a potential EU-US trade deal, and profit boosts from firms like ABB and TSMC.

European stocks experienced a resurgence after consecutive declines, buoyed by a series of strong earnings reports. Meanwhile, on Wall Street, attention was focused on Netflix, while the U.S. dollar regained strength following President Trump's dismissal of rumors suggesting the termination of Federal Reserve Chairman Jerome Powell.

Earnings from European firms, alongside impressive U.S. retail sales data, injected a dose of optimism into the markets. Notable contributors included Swiss engineering titan ABB and Taiwanese chip manufacturer TSMC, fostering hopes for a potential EU-US trade agreement. Markets remained attentive to currency fluctuations with the dollar strengthening against the euro and yen.

In other developments, Japan's yen weakened amid political uncertainties, and both Australia's and Japan's economic data showed signs of the impact from ongoing tariffs. Despite geopolitical and economic concerns, Wall Street's optimism, reflected in Netflix's anticipated earnings, signaled potential positive momentum ahead. Brent oil and gold saw slight declines as financial markets continued to react to global shifts.

(With inputs from agencies.)