Strong business activity indicators in Europe and an unexpected cooling in the U.S. have carried the euro above $1.07, boosting optimism among investors. Tesla’s shares have soared 13% in after-hours trade after the electric vehicle maker announced plans for new models next year. Despite falling 42% in 2024, Tesla’s performance was lifted by the positive outlook. The stronger Australian dollar reflects an inflation surprise in Australia, bringing it back to its 200-day moving average. However, the Japanese yen remains at a 34-year low, keeping markets on high alert for intervention. The Bank of Japan’s dovish stance and its large balance sheet, which exceeds the size of the Japanese economy, raise concerns about the effectiveness of potential rate hikes. In contrast, stocks have performed well due to positive European business data and signs of cooling in the U.S. economy, providing relief from rate hike expectations. Markets are also eagerly awaiting the German Ifo survey, earnings reports from companies including Meta and Boeing, and policymaker speeches from the European Central Bank and Bank of Canada.
European Markets Rise Amid Strong Business Data, Tesla Surges on Model Promises
