A look at the day ahead in European and global markets from

Stella Qiu

Jerome Powell's parting gift as Fed Chair was a proper hawkish

tilt - the U.S. central bank held interest rates steady but in

the most divided vote since 1992 three regional presidents

dissented over phrasing that pointed to an "easing bias", saying

such language was no longer appropriate given elevated inflation

and the massive uncertainty about oil prices as a result of the

U.S.-backed war against Iran.

With Brent oil hitting a four-year high of $125 a barrel

and the Strait of Hormuz still closed, it is not unusual among

central banks - looking at you BoC - to sound the inflation

alarm. Media reports say U.S. President Donald Trump will be

briefed today on new military options against Iran as peace

talks seem to have stalled.

Powell also confirmed he would stay on as a Fed governor

until the outlook was clearer, essentially taking the place of

Governor Stephen Miran, a Trump loyalist who voted for a rate

cut on Wednesday. Many analysts suspect Powell could join the

hawks to try and ward off further attempts by Trump and his new

Fed Chair Kevin Warsh to lower interest rates.

Fed developments and the jump in oil sent Treasury yields

spiking as traders priced out any chance of rate cuts this year.

They now see a roughly even chance of a rate hike from the Fed

by April 2027. Quite a reversal from before the war began at the

end of February.

Equities, however, were in their own AI-generated world. Nasdaq

futures rose around 0.4%, helped by generally positive

first-quarter earnings from four tech giants. Google parent

Alphabet soared 7% in extended trade after smashing

forecasts. Microsoft and Amazon.com delivered as well, but Meta

Platforms ( META ) disappointed on concerns over its AI

spending.

All eyes are now on Apple to keep the good times rolling

later today.

South Korea's KOSPI was set for a 32% surge in

April, the biggest monthly rise since 1998, and Taiwan stocks

for a 24.5% gain over the month, the biggest since 2001.

Who says there's a war going on?

The gulf between macro fears and micro euphoria sets up a

weak European open, with pan-region stock futures down

0.4%. Investors are nervously eyeing the European Central Bank

and Bank of England, both due to announce decisions later,

fearing they might turn yet more hawkish.

March inflation data from Europe and the U.S. are also due and

will reveal the initial impact from the Iran war. A spike in

headline inflation is almost certain on higher petrol prices,

but everyone knows the worst is yet to come.

Key developments that could influence markets on Thursday:

-- Advance estimates for euro zone, U.S. GDP for Q1

-- EU inflation for March

-- U.S. PCE inflation and spending for March

-- ECB and BOE decisions

-- Apple Q1 earnings

(Editing by Kate Mayberry)