European stock markets stayed mostly flat on Thursday morning. Investors were busy looking at mixed financial reports from big companies like Shell and BNP Paribas. At the same time, many people were waiting carefully to see what the European Central Bank would decide about interest rates later in the day. Because inflation seems to be slowing down faster than expected, everyone is listening closely for hints about when interest rates might finally drop.
The banking sector saw very different results. BNP Paribas, the largest bank in the region, saw its stock price jump over 4% because it made more profit than people expected. However, the Spanish bank BBVA saw its stock fall by 4%, even though it still made a good profit.
Meanwhile, the oil company Shell saw its stock price dip because its earnings weren’t as high as experts had hoped.
On a brighter note, technology stocks in Europe bounced back, rising 2%. This helped balance out the losses in other areas. This tech recovery happened partly because the market was recovering from earlier losses and because Google’s parent company, Alphabet, reported positive news in the United States.
Even with all these ups and downs, the main European stock index stayed very close to the record high it reached just the day before.
On the FX front, the US dollar rose to its highest value in two weeks because investors were nervous about sudden price swings in the stock market and precious metals.
The dollar index, which compares the US currency to six other major world currencies, went up for the second day in a row.
Meanwhile, the euro fell slightly as people waited for the European Central Bank to announce its latest decision on interest rates. Most experts believe the bank will keep rates the same, so investors are listening closely to what officials say about the future.
The dollar also gained value against the Japanese yen. Previously, the dollar had dropped to a three-month low after the US and Japan hinted they might step in to strengthen the yen.
However, with a major election coming up this Sunday in Japan, investors are feeling anxious, causing the dollar to jump back up and recover most of those recent losses. Against the Chinese yuan, the dollar stayed mostly steady following a phone call between the U.S. and Chinese presidents where they discussed trade and security issues.
In the world of digital money, cryptocurrencies continued to lose value, reaching their lowest prices since late 2024. Bitcoin saw a sharp drop, falling over 3% at one point to around $70,000 before settling a bit higher. Ether also struggled, though it managed to recover some of its losses after hitting a low point overnight.
Overall, it was a day where investors moved away from “risky” assets like crypto and back toward the safety of the US dollar.
Currency Power Balance
