European Leaders Pledge €800 Billion for Military Spending, Ferragamo Plunged 15%

Market sentiment on European bourses was weak amid persistent geopolitical uncertainty, and the euro booked its best weekly gain in 16 years. 

Benchmark indexes in Frankfurt and Paris fell more than 1%, and they in Milan and London declined 0.5%, as ongoing uncertainty surrounding U.S. trade policy weighed.

European leaders reaffirmed their military and financial support for Ukraine in an emergency meeting on Thursday. 

A coalition of 27 nations, led by France and the UK, announced their commitment to provide multi-billion euros in military assistance over the coming months. 

A summit of the European Council approved the ReArm Europe plan with an expected investment of €800 billion.

Earlier in the week, Friedrich Merz, leader of the CDU party and the likely Chancellor of the new coalition government, proposed to set up a 500 billion fund. 

The German fund will provide capital for domestic infrastructure projects and spend for arms, which could be provided to Ukraine's military. 

Defense stocks continued to stay near record highs amid expectations that Germany, France, and the UK will accelerate military spending after the U.S. announced its unwillingness to provide assistance to Ukraine. 

Europe Stock Movers 

Luxury goods stocks fell sharply after Salvatore Ferragamo SpA unexpectedly announced losses in 2024. 

Ferragamo SA dropped 15% to €6.33 after the Italian luxury apparel, footwear, and accessories company's sales declined 10.5% to €1.03 billion.

Zalando SE decreased 1.8% to €32.52 after the German online apparel retailer confirmed it secured 90% of the share capital of About You in its public takeover offer. 

Vivendi SE rose 2.4% to €2.91, and the diversified French conglomerate reported a €6 billion loss in 2024 after a four-way spinoff late last year.

Flughafen Zurich AG declined 3% to CHF 210.80 after the parent company of Zurich airport's 2025 outlook fell short of investors' expectations.

Air France KLM SA declined 6.7% to €11.33 and reversed gains in the previous session, after the airline group reported narrower-than-expected losses in 2024. 

Rising Yen and Tech Weakness Dragged Down Nikkei 225 Index

Stock market indexes in Tokyo plunged more than 2% following steep losses in tech stocks in overnight trading on Wall Street. 

The Nikkei 225 stock average dropped 2.2%, and the broader TOPIX declined 1.6% after semiconductor-linked stocks plunged amid weakness in New York. 

Market indexes were also under pressure in the growing belief that the Bank of Japan is more likely to raise interest rates at the next meeting later in the month. 

Economy Minister Ryosei Azakawa said that Japan is set to officially declare the end of long-term deflation, shifting the government's stance on the economy. 

The yen closed at 147.47 against the U.S. dollar in choppy trading and extended this year's gain to 5%.

Japan has been struggling with long-term deflation for nearly three decades, forcing the central bank to keep negative interest rates for eight years between March 2016 and March 2024.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 2.2% to 36,887.17, and the broader TOPIX dropped 1.6% to 2,708.59. 

Stocks in Tokyo fell sharply across the board, and export-sensitive stocks led the decliners. 

Sony Group Corp. fell 4.4% to ¥3,569.0, IHI Corp. fell 5% to ¥10,835.0, and Nintendo dropped 9% to ¥10,335.0.

Rising Yen and Tech Weakness Dragged Down Nikkei 225 Index

Stock market indexes in Tokyo plunged more than 2% following steep losses in tech stocks in overnight trading on Wall Street. 

The Nikkei 225 stock average dropped 2.2%, and the broader TOPIX declined 1.6% after semiconductor-linked stocks plunged amid weakness in New York. 

Market indexes were also under pressure in the growing belief that the Bank of Japan is more likely to raise interest rates at the next meeting later in the month. 

Economy Minister Ryosei Azakawa said that Japan is set to officially declare the end of long-term deflation, shifting the government's stance on the economy. 

The yen closed at 147.47 against the U.S. dollar in choppy trading and extended this year's gain to 5%.

Japan has been struggling with long-term deflation for nearly three decades, forcing the central bank to keep negative interest rates for eight years between March 2016 and March 2024.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average declined 2.2% to 36,887.17, and the broader TOPIX dropped 1.6% to 2,708.59. 

Stocks in Tokyo fell sharply across the board, and export-sensitive stocks led the decliners. 

Sony Group Corp. fell 4.4% to ¥3,569.0, IHI Corp. fell 5% to ¥10,835.0, and Nintendo dropped 9% to ¥10,335.0.

Japan Markets Fr

Hang Seng Index Trimmed Weekly Advance to 4%, Sharp Slowdown In China's Exports In Jan-Feb Period

Hang Seng Index Trimmed Weekly Gains to 4% After China Set Ambitious Economic Growth Target

Hang Seng Index Jumped Weekly 4% After China Set Amb

Stock market indexes in China and Hong Kong halted a two-day rally, which was driven by hopes of additional stimulus measures after the government set an ambitious economic growth target. 

The Hang Seng index decreased 0.7%, and the mainland-focused CSI 300 index fell 0.5%, but investors held out for additional stimulus measures to boost the stock market, economy, property market, and consumer confidence.

For the week, the CSI 300 index increased 1% and the Hang Seng index soared 4.7%.

China's exports increased at 2.3% in the two-month period to February, slower than a 10.7% surge in December when U.S. importers front-loaded orders to avoid sharply higher tariffs. 

Exports for the January-February period rose 2.3% to $540 billion, and imports unexpectedly declined 8.4% to $369.3 billion, according to data released by the General Administration of Customs. 

China's exports to the U.S. are likely to face headwinds in the months ahead amid higher tariffs and a weakening macroeconomic backdrop. 

China's exports to the ASEAN region, its largest trading partner, rose 5.7% in the two-month period amid sustained demand for mechanical electric goods, fertilizers, and integrated circuits. 

After a week of trading in Hong Kong, benchmark indexes advanced at the fastest pace in two months following the release of an ambitious annual economic growth target of 5% by the Chinese leadership. 

Beijing leaders announced their plans to support elevated economic growth by increasing the government deficit to 4% of gross domestic product and raising its debt limits.

China Indexes and Stocks 

The Hang Seng index decreased 0.7% to 24,211.39, and the mainland-focused CSI 300 index declined 0.5% to 3,935.60. 

Technology-focused, online platform operators and property developers led the most actively traded stocks in Friday's trading in Hong Kong.

Alibaba Group Holding decreased 0.6% to HK $139.90, Meituan jumped 1.7% to HK $183.30, and JD.com fell 4.4% to HK $171.50.

Wall Street Indexes Resume Selling as Global Trade War Fears Shake Investor Sentiment

On Wall Street, stock market indexes resumed selling amid ongoing Trump tariff confusion and flip-flops and growing worries about the state of the U.S. economy. 

The S&P 500 index decreased 1.5% and the Nasdaq Composite declined 1.7%, amid worries that the Donald Trump's economic policies are fueling inflation and pushing the economy closer to a recession. 

The White House confirmed that the U.S. would offer exemptions to the automobiles shipped from Canada and Mexico, but investors worried that the one-month delay in tariffs to a select group of companies is not going to help the overall weakening macroeconomic outlook. 

On Wall Street, the Trump bump after the presidential election last November has now turned into a Trump dump, and investors are increasingly worried that the reckless tariffs with no economic rationale are pushing the economy closer to a recession. 

Moreover, the Federal Reserve is more likely to postpone its rate cut towards the end of the year or may completely avoid it in 2025, amid rising prices at pump stations, grocery stores, and for services.

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 1.5% to 5,753.84, the Nasdaq Composite edged down 1.7% to 18,234.24, and the Russell 2000 index was down 1.6% to 2,066.80.

The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.58%.

WTI crude oil increased $0.25 to $66.54 a barrel, and natural gas prices edged lower by $0.08 to $4.37 a therm. unit.

Gold decreased by $9.04 to $2,909.10 an ounce, and silver edged down by $0.23 to $32.40.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 1.74 to 104.01 and traded at a two-year high.

U.S. Movers 

Marvell Technology plunged 17.5% to $74.41 after the advanced chipmaker reported fiscal fourth quarter results and the company's first quarter estimates fell short of expectations. 

MongoDB Inc. dropped 22% to $206.71 after the company's weak outlook overshadowed strong quarterly results.

Zscaler Inc. rose 6% to $208.17 after the cloud security company reported strong quarterly results. 

Victoria's Secret & Company dropped 9% to $20.23 after the lingerie retailer's revenue outlook in the current quarter fell short of market expectations. 

Veeva Systems soared 5.9% to $233.06 after the cloud computing company reported strong quarterly results and offered a positive outlook for the current quarter. 

Macy's Inc. decreased 9% to $13.02 after the struggling department store chain reported mixed quarterly results and offered a downbeat sales outlook, blaming "external uncertainties."

Across Macy's business units, including flagship stores, Bloomingdale's, and Blue Mercury, comparable store sales decreased 1.1%. 

While the company's turnaround is taking shape, the company's fiscal 2025 earnings outlook disappointed investors.

Wall Street Indexes Resume Selling as Fears of Trade War Shake Investor Sentiment

On Wall Street, stock market indexes resumed selling amid ongoing Trump tariff confusion and flip-flops and growing worries about the state of the U.S. economy. 

The S&P 500 index decreased 1.5% and the Nasdaq Composite declined 1.7%, amid worries that the Donald Trump's economic policies are fueling inflation and pushing the economy closer to a recession. 

The White House confirmed that the U.S. would offer exemptions to the automobiles shipped from Canada and Mexico, but investors worried that the one-month delay in tariffs to a select group of companies is not going to help the overall weakening macroeconomic outlook. 

On Wall Street, the Trump bump after the presidential election last November has now turned into a Trump dump, and investors are increasingly worried that the reckless tariffs with no economic rationale are pushing the economy closer to a recession. 

Moreover, the Federal Reserve is more likely to postpone its rate cut towards the end of the year or may completely avoid it in 2025, amid rising prices at pump stations, grocery stores, and for services.

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 1.5% to 5,753.84, the Nasdaq Composite edged down 1.7% to 18,234.24, and the Russell 2000 index was down 1.6% to 2,066.80.

The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.58%.

WTI crude oil increased $0.25 to $66.54 a barrel, and natural gas prices edged lower by $0.08 to $4.37 a therm. unit.

Gold decreased by $9.04 to $2,909.10 an ounce, and silver edged down by $0.23 to $32.40.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 1.74 to 104.01 and traded at a two-year high.

U.S. Movers 

Marvell Technology plunged 17.5% to $74.41 after the advanced chipmaker reported fiscal fourth quarter results and the company's first quarter estimates fell short of expectations. 

MongoDB Inc. dropped 22% to $206.71 after the company's weak outlook overshadowed strong quarterly results.

Zscaler Inc. rose 6% to $208.17 after the cloud security company reported strong quarterly results. 

Victoria's Secret & Company dropped 9% to $20.23 after the lingerie retailer's revenue outlook in the current quarter fell short of market expectations. 

Veeva Systems soared 5.9% to $233.06 after the cloud computing company reported strong quarterly results and offered a positive outlook for the current quarter. 

Macy's Inc. decreased 9% to $13.02 after the struggling department store chain reported mixed quarterly results and offered a downbeat sales outlook, blaming "external uncertainties."

Across Macy's business units, including flagship stores, Bloomingdale's, and Blue Mercury, comparable store sales decreased 1.1%. 

While the company's turnaround is taking shape, the company's fiscal 2025 earnings outlook disappointed investors.

U.S. Movers: Abercrombie & Fitch, Foot Locker, Mongo DB, Veeva Systems

Foot Locker Inc. gained 0.5% to $18.35 after the footwear and apparel retailer reported weaker-than-expected sales in the fourth quarter of 2024.

Sales decreased to $2.24 billion from $2.38 billion, net income swung to a profit of $49 million from a loss of $389 million, and earnings per diluted share rose to a profit of 57 cents from a loss of $4.13 a year ago.

Sales in the 53rd week in 2023 were $98 million.

Overall comparable sales, including all banners and geographies, increased by 2.6%, and North America comparable same-store sales advanced 3.6%. 

Champs Sports delivered its second consecutive quarter of comparable sales growth, with gains of 1.8%.

Foot Locker completed 160 store refreshes in the fourth quarter, bringing the total to over 400 for the year.

The company guided for fiscal 2025 sales growth between -1% and 0.5%, comparable sales change between 1% and 2.5%, and non-GAAP earnings per share between $1.35 and $1.65, compared to $1.37 in 2024.

Abercrombie & Fitch Co. dropped 0.3% to $87.0 after the specialty apparel retailer reported comparable sales growth of 14% in the fiscal fourth quarter of 2024.

Net sales increased to $1.58 billion from $1.45 billion, net income climbed to $187.23 million from $158.45 million, and earnings per diluted share rose to $3.57 from $2.97 a year ago.

Full-year 2024 revenue increased 16% to $4.95 billion from $4.28 billion a year ago, driven by a 17% rise in comparable store sales.

The company guided for the first quarter of 2025 net sales growth between 4% and 6% and net income per diluted share between $1.25 and $1.45, compared to $2.14 in the same period in 2024.

For the full year, the apparel retailer estimated net sales growth between 3% and 5% and net income per diluted share between $10.40 and $11.40, compared to $10.69 in 2024.

Abercrombie & Fitch announced a new $1.3 billion share repurchase authorization, expecting $400 million in share repurchases during 2025.

Veeva Systems Inc. surged 7.2% to $235.69 after the provider of cloud solutions for the life sciences industry reported increased sales in the fiscal fourth quarter of 2025 ending in January.

Revenue jumped to $720.89 million from $630.62 million, net income increased to $195.62 million from $147.40 million, and earnings per diluted share rose to $1.18 from 90 cents a year ago.

The company guided for the first quarter of 2026 revenue between $726 million and $729 million, compared to $650.3 million, and non-GAAP earnings per diluted share between $1.74 and $1.75, compared to $1.50 in the previous year.

Non-GAAP operating income is expected to be between $307 million and $309 million, compared to $247.0 million in the first quarter of 2025.

For the full year, Veeva estimated revenue between $3.04 billion and $3.05 billion, up from $2.75 billion a year ago, and non-GAAP earnings per diluted share at approximately $7.32, compared to $6.60 in 2025.

Non-GAAP operating income is expected at $1.30 billion, compared to $1.15 billion in 2025.

MongoDB Inc. plunged 17.4% to $218.10 after the developer data platform provider missed fourth-quarter analysts expectations.

Fourth-quarter 2025 revenue increased to $548.40 million from $458.00 million, net income jumped to $15.83 million from a loss of $55.46 million, and earnings per diluted share rose to 19 cents from a loss of 77 cents a year ago.

The company guided for the first quarter of 2026 revenue between $524 million and $529 million, up from $450.6 million a year ago, and non-GAAP net income per share between 63 cents and 67 cents, compared to 51 cents in the same quarter in 2025.

Non-GAAP income from operations is expected to be between $54 million and $58 million, up from $32.8 million in the first quarter of 2025.

MongoDB announced a stock buyback program of $200 million to offset the impact of last year’s acquisition of Voyage AI, a provider of embedding and reranking models that power next-generation artificial intelligence applications.

U.S. Movers: Abercrombie & Fitch, Foot Locker, Mongo DB, Veeva Systems

Foot Locker Inc. gained 0.5% to $18.35 after the footwear and apparel retailer reported weaker-than-expected sales in the fourth quarter of 2024.

Sales decreased to $2.24 billion from $2.38 billion, net income swung to a profit of $49 million from a loss of $389 million, and earnings per diluted share rose to a profit of 57 cents from a loss of $4.13 a year ago.

Sales in the 53rd week in 2023 were $98 million.

Overall comparable sales, including all banners and geographies, increased by 2.6%, and North America comparable same-store sales advanced 3.6%. 

Champs Sports delivered its second consecutive quarter of comparable sales growth, with gains of 1.8%.

Foot Locker completed 160 store refreshes in the fourth quarter, bringing the total to over 400 for the year.

The company guided for fiscal 2025 sales growth between -1% and 0.5%, comparable sales change between 1% and 2.5%, and non-GAAP earnings per share between $1.35 and $1.65, compared to $1.37 in 2024.

Abercrombie & Fitch Co. dropped 0.3% to $87.0 after the specialty apparel retailer reported comparable sales growth of 14% in the fiscal fourth quarter of 2024.

Net sales increased to $1.58 billion from $1.45 billion, net income climbed to $187.23 million from $158.45 million, and earnings per diluted share rose to $3.57 from $2.97 a year ago.

Full-year 2024 revenue increased 16% to $4.95 billion from $4.28 billion a year ago, driven by a 17% rise in comparable store sales.

The company guided for the first quarter of 2025 net sales growth between 4% and 6% and net income per diluted share between $1.25 and $1.45, compared to $2.14 in the same period in 2024.

For the full year, the apparel retailer estimated net sales growth between 3% and 5% and net income per diluted share between $10.40 and $11.40, compared to $10.69 in 2024.

Abercrombie & Fitch announced a new $1.3 billion share repurchase authorization, expecting $400 million in share repurchases during 2025.

Veeva Systems Inc. surged 7.2% to $235.69 after the provider of cloud solutions for the life sciences industry reported increased sales in the fiscal fourth quarter of 2025 ending in January.

Revenue jumped to $720.89 million from $630.62 million, net income increased to $195.62 million from $147.40 million, and earnings per diluted share rose to $1.18 from 90 cents a year ago.

The company guided for the first quarter of 2026 revenue between $726 million and $729 million, compared to $650.3 million, and non-GAAP earnings per diluted share between $1.74 and $1.75, compared to $1.50 in the previous year.

Non-GAAP operating income is expected to be between $307 million and $309 million, compared to $247.0 million in the first quarter of 2025.

For the full year, Veeva estimated revenue between $3.04 billion and $3.05 billion, up from $2.75 billion a year ago, and non-GAAP earnings per diluted share at approximately $7.32, compared to $6.60 in 2025.

Non-GAAP operating income is expected at $1.30 billion, compared to $1.15 billion in 2025.

MongoDB Inc. plunged 17.4% to $218.10 after the developer data platform provider missed fourth-quarter analysts expectations.

Fourth-quarter 2025 revenue increased to $548.40 million from $458.00 million, net income jumped to $15.83 million from a loss of $55.46 million, and earnings per diluted share rose to 19 cents from a loss of 77 cents a year ago.

The company guided for the first quarter of 2026 revenue between $524 million and $529 million, up from $450.6 million a year ago, and non-GAAP net income per share between 63 cents and 67 cents, compared to 51 cents in the same quarter in 2025.

Non-GAAP income from operations is expected to be between $54 million and $58 million, up from $32.8 million in the first quarter of 2025.

MongoDB announced a stock buyback program of $200 million to offset the impact of last year’s acquisition of Voyage AI, a provider of embedding and reranking models that power next-generation artificial intelligence applications.