European Markets Rise Amid Positive Corporate Earnings and Strong Retail Sales

On Thursday, European stock markets saw gains as investors reviewed the strength of the global market while processing an influx of mostly positive corporate earnings. The DAX index in Germany rose 0.6%, the CAC 40 in France climbed 0.8%, and the FTSE 100 in the UK rose 0.3%, as European equities benefited from a favourable close on Wall Street.

Investors seized on the release of stronger-than-expected retail sales as evidence of the resilience of the US economy. Despite this positive momentum, European Central Bank President Christine Lagarde declared that another interest rate hike of 50 basis points is forthcoming next month.

Despite aggressive monetary tightening, the Eurozone economy has demonstrated unexpected durability, and the European Commission raised its economic projections earlier this week, indicating that the bloc will likely avoid a recession this year.

Oil Prices Rise on Optimism of Chinese Demand Recovery

Oil prices increased on Thursday as optimism about a recovery in Chinese demand eclipsed a surge in US crude inventories. Data released on Wednesday by the Energy Information Administration revealed that US crude oil stocks soared by over 16 million barrels last week. However, the EIA noted that the significant build was mostly due to a data adjustment, which reduced its impact. Furthermore, data released on Thursday indicated that China's January air passenger traffic increased by 34.8% from a year earlier, implying that demand from the world's largest importer of crude will rebound relatively quickly after it decides to abandon its strict zero-COVID policy.

Global Economic Insights from the Packed Economic Calendar on February 16

The economic calendar for Thursday, February 16, is packed with important events that will provide insight into the current state of the global economy. Investors are watching closely the release of key economic data and speeches from central bank officials for signs of the direction of the global economy. On Thursday, February 16, the market will focus on several economic indicators, including US building permits and housing starts for January, initial jobless claims, and the Philadelphia Fed Manufacturing Survey.

The initial jobless claims are expected to come in at 200k for the week ending February 10, a slight increase from the previous week. Meanwhile, the Philadelphia Fed Manufacturing Survey is expected to show a slight improvement in manufacturing activity, with a reading of -7.4, compared to the previous month's reading of -8.9.

Investors will also be looking out for speeches from several central bank officials, including the European Central Bank's Lane and De Guindos, Canada's Bank of Canada's Governor Macklem and Rogers, the Bank of England's Pill, and the US Federal Reserve's Bullard, Cook, and Mester.

The market is waiting for insights into these officials' views on the state of the economy, inflation, and the possibility of interest rate hikes. Any indications of a change in monetary policy could impact the financial markets and affect investors' strategies.