European Indices Post Third Consecutive Day of Gains

European equity markets finished the session with another broad-based advance as investors remained comfortable adding risk. Spain and Italy once again led the major indices, while Germany, France, and the UK also posted solid gains. The positive tone carried into the North American session, although US gains have been more modest as traders balance stronger equities against another move higher in Treasury yields.

**Major European Indices Performance:** 🇩🇪 Germany (EU40): 25,155.42, +144.07 (+0.58%) 🇫🇷 France (CAC 40): 8,437.90, +74.75 (+0.89%) 🇬🇧 UK (UK 100): 10,716.98, +131.07 (+1.24%) 🇪🇸 Spain (IBEX 35): 19,571.30, +191.50 (+0.99%) 🇮🇹 Italy (FTSE MIB): 52,792.03, +506.95 (+0.97%)

The UK's FTSE 100 was the standout performer with a gain of 1.24%, while Spain's IBEX 35 and Italy's FTSE MIB each climbed close to 1.0%. France's CAC 40 also posted a strong 0.89% advance, with Germany adding a respectable 0.58%. The broad gains suggest investors continue to favor equities despite ongoing geopolitical concerns and higher global interest rates.

US equities are also trading in positive territory as Europe heads for the exit, although the gains are more restrained than those seen earlier in the week. The Dow Jones is leading the major indices, while the Russell 2000 is the lone laggard as small-cap shares struggle to keep pace.

**Major US Indices Performance:** 🇺🇸 Dow Jones: 52,395.25, +165.02 (+0.32%) 🇺🇸 S&P 500: 7,523.49, +14.28 (+0.19%) 🇺🇸 NASDAQ Composite: 25,839.07, +1.87 (+0.01%) 🇺🇸 Russell 2000: 2,968.28, -19.12 (-0.64%)

The mixed leadership points to a more selective risk environment in the US. Blue-chip stocks continue to outperform, while technology shares have flattened after recent gains and small-cap stocks are seeing some profit-taking. After today's close, investors will focus on Tesla, Alphabet, ServiceNow, IBM, and Texas Instruments, with results expected to provide key insights into AI spending, enterprise software demand, semiconductor trends, and the outlook for EVs. The reports from Tesla and Alphabet are likely to have the biggest impact on overall market sentiment and could set the tone for technology stocks into Thursday.

Looking ahead to Thursday, attention shifts to Nokia before the opening bell and Intel after the close. Intel's report will be closely watched for updates on its turnaround strategy, AI competitiveness, and foundry business, while Nokia will offer another read on telecom infrastructure spending.

Treasury yields are pushing higher across nearly the entire curve, continuing to reflect expectations that the Federal Reserve may keep policy restrictive for longer. The rise has been led by the front end of the curve, while longer-dated yields have increased more modestly.

**Treasury Yields:** 2-year Treasury: 4.302%, +4.1 bps 5-year Treasury: 4.404%, +3.5 bps 10-year Treasury: 4.650%, +2.2 bps 20-year Treasury: 5.159%, +1.5 bps 30-year Treasury: 5.139%, +0.8 bps

The curve continues to flatten modestly as shorter-dated maturities underperform the long end. Despite the move higher in yields, equity investors remain focused on resilient economic growth and generally favorable earnings expectations, allowing stocks to hold onto gains as the North American session moves into the afternoon. The US treasury will auction off 20-year bonds at 1 PM ET.

In the currency market, the EURUSD is little changed but remains modestly firmer, while the USDCHF is the biggest mover of the major currency pairs with only a 0.19% gain in favor of the greenback. The USD is modestly stronger vs the GBP (+0.03%), the AUD (+0.04%) and the NZD (+0.12%). The USD is weaker vs the JPY (-0.04%) and CAD (-0.12%).