Market excitement is fueled by the Nikkei 225's all-time high

(AI Video Summary)

The Nikkei 225

The Nikkei 225, a stock index in Japan, is close to breaking its all-time high record. Additionally, the European markets, represented by the German DAX and the French CAC, are expected to start strong with record levels.

Coinbase

Coinbase, a company in the cryptocurrency market, experienced a 14% increase in its stock price after announcing impressive earnings.

UK retail sales

The UK retail sales for January saw a significant surge of 3.2%, which balanced out the negative figure from December. Overall, the markets have been moving sideways, making it hard to predict their next direction, but it seems like it will be a positive week for the London markets.

The Bank of England

Despite uncertainties about the Bank of England's decisions on interest rates, the good numbers for UK retail sales and gross domestic product (GDP) suggest that the London markets will have a strong start.

The Asian markets

The Asian markets, especially the Japanese Nikkei 225, have also seen noticeable gains. Over the last 14 to 15 months, the Nikkei 225 has experienced a remarkable increase of 16.94%. Wall Street also saw gains with all major markets, such as the Dow Industrials, the Nasdaq, and the S&P 500, rising for three consecutive days.

The UK economy

While the UK economy officially entered a recession for the third and fourth quarters of last year, the retail sales numbers for January paint a different picture, showing a significant increase. As a result, the opening of the London markets is expected to be strong. The value of the British pound also rose after the release of the retail sales data, potentially indicating an increase against the US dollar and the EUR.

The FOMC

Looking ahead to next week, the focus will be on the release of the FOMC minutes on Wednesday. These minutes are expected to outline the Federal Reserve's stance on keeping interest rates higher for a longer period of time, as they aim to control inflation before considering any rate cuts.

NatWest

In the corporate world, NatWest announced better-than-expected results, reporting pre-tax profits of £6.2 billion, surpassing analysts' forecasts. The bank also revealed plans for dividends and a share buyback. Coinbase also had positive results, with earnings per share of $1 and record revenues, benefiting from the recent surge in Bitcoin and other cryptocurrencies.

In summary, the European markets were set for a strong start, with the Nikkei 225 and the UK retail sales driving positive sentiments. NatWest's impressive results had a significant impact on the European stock story. However, spot gold experienced a decline due to the strengthening US dollar, while the oil markets maintained their recent gains.