European Markets React to Economic Forecasts and Corporate Earnings Reports

The Swedish Riksbank has cut interest rates by 25 basis points to 2.25%, citing limited inflation risk amid weak economic activity. Meanwhile, Volvo Group reported a decline in fourth-quarter operating profit but a 24% increase in net order intake, while Spain’s GDP grew by 0.8% in Q4 2024, surpassing expectations. In the luxury sector, LVMH’s shares fell nearly 5% despite better-than-expected revenues, reflecting ongoing pressures in key segments.

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Stock Futures Dip as Investors Anticipate Federal Reserve Interest Rate Decision

Stock futures dipped slightly as investors awaited the Federal Reserve’s interest rate decision, with a nearly 100% expectation that rates will remain steady at 4.25% to 4.50%. Despite a significant sell-off in tech stocks due to concerns over China’s DeepSeek, the S&P 500 and Nasdaq Composite rebounded, led by gains in Nvidia and other tech firms. Companies like Starbucks and F5 reported better-than-expected earnings, contributing to a mixed market outlook.

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