European stocks are likely to open on a positive note Friday after tech giants Alphabet and Microsoft reported earnings beat for the first quarter, helping ease concerns about the cost of artificial intelligence.
Energy giants Chevron and Exxon Mobil are among the companies due to report their results before the U.S. opening bell later today.
On the data front, trading later in the day may be influenced by reaction to the Commerce Department’s report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve.
Closer home, France’s statistical office INSEE publishes consumer sentiment survey results later in the day. The confidence index is forecast to rise to 92 in April from 91 in March.
Asian markets traded mixed, and the yen weakened to 156 against the green back as the Bank of Japan left interest rates unchanged as expected and said it would continue to conduct bond purchases in line with the March decision.
The dollar steadied in Asian trading after dropping overnight on signs of weaker GDP growth and stubborn inflationary pressures in the world’s largest economy.
Gold was little changed and remained on track for its first weekly decline in six on easing Middle East concerns and expectations that the Federal Reserve will keep interest rates higher for longer.
Oil prices rose and were on track to end higher this week after two straight weeks of losses, as U.S. Treasury Secretary Janet Yellen reportedly said the U.S. economy is “firing on all cylinders” and inflation is on a path toward a more normal level.
U.S. stocks ended lower but off their day’s lows overnight, following disappointing earnings updates from IBM and Meta Platforms.
Treasury yields climbed as new data showed slowing GDP growth but strong inflation, raising fears of stagflation.
Data showed that U.S. GDP slowed to 1.6 percent annualized in the first quarter after surging by 3.4 percent in the fourth quarter of 2023.
Core inflation came in stronger at 3.7 percent in Q1, picking up from a 2 percent annualized rate and pushing out rate-cut bets to December.
The Dow gave up 1 percent, the-heavy Nasdaq Composite declined 0.6 percent and the S&P 500 dipped half a percent.
European stocks closed mostly lower on Thursday as mixed earnings and weak U.S. data offset big M&A news in the mining sector.
The pan European STOXX 600 fell 0.6 percent. The German DAX lost 1 percent and France’s CAC 40 shed 0.9 percent while the U.K.’s FTSE 100 added half a percent.
Market Analysis
European Shares Seeking Rebound With Tech Earnings In Focus
2024-04-26 05:34:43
