Global shares gain on earnings optimism, gold surges ahead
European stocks rise about 0.4%
Earnings optimism buoys tech shares, Apple results awaited
Gold and silver hit record highs
Dollar weakens despite U.S. and European officials’ support
LONDON/SYDNEY, Jan 29 (Reuters) – World stocks gained on Thursday as investors’ optimism over earnings held up ahead of Apple’s results, while gold blazed to its latest record high and oil prices rose on U.S.-Iran tensions.
Markets have been counting on earnings to keep equities in vogue as prospects for U.S. rate cuts before summer fade.
On Wednesday the U.S. Federal Reserve left interest rates unchanged as widely expected, while Chair Jerome Powell talked of a “clearly improving” economic outlook and broad support on the committee for a pause.
Powell would not be drawn on whether he would remain as a Fed governor after he steps down as Chair in May, given President Donald Trump’s efforts to pressure the Fed into more aggressive rate cuts.
Investors reacted by cutting the chance of another cut by April to 26%, with June seen as the next likely window.
Deutsche Bank analysts wrote that its economists “see the Powell-led Fed as having now delivered its last rate cut,” adding that “they think risks around their expectation of one rate cut this year in September have become more balanced.”
Apple (AAPL.O), opens new tab results are in focus, with JPMorgan expecting earnings to beat consensus driven by stronger iPhone 17 demand and slower growth in expenses.
On Wall Street, S&P 500 futures and Nasdaq futures added around 0.3% each as disappointment over Microsoft (MSFT.O), opens new tab results was tempered by strong guidance from Meta (META.O), opens new tab.
Meanwhile, gold and silver climbed to record highs as investors’ rush into precious metals continued.
Gold added 2.5% to $5,536 an ounce , bringing its gains for this month alone to around 28%.
Europe’s basic resources index (.SXPP), opens new tab rose 3% to its highest since May 2008.
Oil prices hit a four-month high as Trump warned Iran of possible attacks if it did not make a deal on nuclear weapons.
Brent added 1.5% to $69.44 a barrel, while U.S. crude rose 1.7% to $64.26 per barrel.
Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was little changed. But South Korea stocks (.KS11), opens new tab rose 0.6%, bringing gains for January so far to a thumping 23%. The tech-heavy Taiwan market (.TWII), opens new tab is up almost 13% in the same time period.
Indonesia’s market(.JKSE), opens new tab had a second session of losses after index provider MSCI warned about ownership and trading transparency, leading Goldman Sachs to cut its rating on the country’s equities.
AI CAPEX VS EARNINGS
On Wednesday Microsoft’s shares slid 6.5% over concerns its capital expenditure would fail to make sufficient returns to justify its high valuation.
Meta lifted its outlook for revenues and capex for 2026, sending its shares up 8% after hours and adding around $140 billion to its market value.
“A common theme so far from META and MSFT is the larger-than-expected capex spending, indicating the upward momentum for AI spending,” noted analysts at JPMorgan. The difference, they said, was Meta also raised its 2026 revenue outlook to well above market expectations.
In currency markets, the dollar was on the defensive as investors hedged against U.S. policy uncertainty and the country’s ever-growing debt mountain.
Against a basket of currencies, the dollar was at 96.17 , languishing near Tuesday’s four-year low of 95.566.
European leaders voiced concerns at the dollar’s slide, while officials at the European Central Bank suggested a further steep rise in the euro could warrant interest rate cuts.
The euro added another 0.2% to $1.1979 , while the dollar lost 0.3% on the Swiss franc to 0.7658 . It also dipped 0.3% on the Japanese yen to 153.03 .
Reporting by Tom Wilson in London and Wayne Cole in Sydney; Editing by Sonali Paul, Jacqueline Wong and Jane Merriman
Tom Wilson covers investigative stories across finance and business. He previously led Reuters’ coverage of cryptocurrencies, and was the news agency’s Reporter of the Year 2022 for his series on the Binance exchange. In a decade at Reuters, he worked in Tokyo for four years, uncovering abuses in Japan’s immigration system and covering the tobacco giant Philip Morris. His work has won prizes from the Gerald Loeb Awards, the Overseas Press Club and the Society for Advancing Business Editing and Writing.
