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Markets Update: Disappointing earnings from U.S. tech giants dragged Asian stocks down while the yen surged to a seven-week high on expectations of a central bank rate hike next week, with oil prices rising and European markets set to open lower.
Economic Calendar
Wednesday Morning Coffee - Markets Update - 24 July 2024 - Tech Earnings Stumble Sparks Asian Market Volatility; Yen Hits Seven-Week High
Global Markets Roundup: 24 July 2024
Asian stocks faltered on Wednesday as disappointing earnings from U.S. tech giants Tesla and Alphabet dampened investor sentiment, while the yen surged to a seven-week high ahead of a crucial central bank meeting next week that could see a rate hike. The U.S. dollar held steady, with traders eyeing an upcoming inflation report on Friday and a Federal Reserve meeting next week. The Bank of Japan, also meeting next week, has a 44% chance of raising rates by 10 basis points.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.35%, and Japan's Nikkei NI225 fell 1%. Taiwan's financial markets remained closed due to a typhoon. Nasdaq futures (NQ1!) declined 1%, and S&P 500 futures were down 0.6% after Tesla TSLA reported its lowest profit margin in over five years, affecting other electric vehicle stocks. Shares of Google-parent Alphabet (GOOG) fell in after-hours trading despite the company surpassing revenue and profit expectations. The downbeat sentiment is expected to extend to Europe, with Eurostoxx 50 futures FESX1! down 0.65%, German DAX futures DAX1! down 0.44%, and FTSE futures Z1! 0.3% lower ahead of numerous earnings reports from European companies.
Investor attention will be on European luxury stocks following a slowdown in sales growth at LVMH MC, the world's largest luxury group, as Chinese consumers reduce spending. Chinese stocks experienced mixed trading, with the Shanghai Composite Index 000001 remaining flat and the blue-chip CSI300 Index (3399300) falling 0.26% after its biggest one-day decline since mid-January on Tuesday.
In currency markets, the Japanese yen USDJPY spiked to a seven-week high of 154.36 per dollar after rising nearly 1% on Tuesday, having languished near a 38-year low of 161.96 at the start of the month. It was last up 0.56% at 154.75. The yen was broadly higher, reaching over a one-month high against the pound GBPJPY, the euro EURJPY, and a two-month high against the Australian dollar AUDJPY. The dollar index DXY, which measures the U.S. currency against six rivals, remained steady at 104.41, down 1.3% this month.
In commodities and soft commodities, oil prices increased as U.S. crude inventories eased. Brent crude futures for September BRN1! rose 0.28% to $81.24 a barrel, while U.S. West Texas Intermediate crude for September CL1! gained 0.31% to $77.20 per barrel. Spot GOLD edged 0.3% higher at $2,416.62 per ounce. The LME copper HG1! lost 0.4% to $9,130.50 per metric ton. Wheat ZW1! traded 0.5% lower to $5.40-1/4 a bushel. September London cocoa C1! traded and closed 0.5% lower, to 6,806 pounds per metric ton.
Looking ahead today, markets anticipate the German HCOB Germany Manufacturing PMI, SAR Inflation Rate, BoC Interest Rate Decision, and EIA Crude Oil Stocks Change.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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