European stocks are likely to open on a tepid note Wednesday after Google parent Alphabet and electric vehicle maker Tesla reported disappointing financial results.
Alphabet topped quarterly revenue estimates, but advertising sales growth slowed, dampening the search giant’s recovery from a brief dip in its core business.
Tesla’s Q2 profit missed estimates amid price cuts to revive demand and increased spending on AI projects.
Asian markets were mostly lower, with Japan’s Nikkei falling over 1 percent as the yen strengthened ahead of a Bank of Japan policy meeting next week where a rate hike remains on the table.
The dollar index held close to a two-week high ahead of U.S. President Joe Biden’s final Oval Office speech to explain why he dropped out of November’s election.
U.S. two-year yields edged lower after a solid $69 billion auction, which reinforced market bets on a rate cut in September.
Gold consolidated above $2,400 per ounce after snapping a four-day losing streak on Tuesday. Oil prices edged up in Asian trade after industry data showed a draw in U.S. inventories.
In economic releases, purchasing managers’ index figures across the globe will be in focus today.
U.S. data on Q2 GDP is due on Thursday and PCE data – the Fed’s favored measure of inflation – on Friday.
U.S. stocks struggled for direction before eventually ending modestly lower overnight as investors assessed mixed earnings reports and monitored the fast-changing presidential contest.
Coca-Cola and GE Aerospace posted impressive earnings, but General Motors reported weakness in its China business and UPS reported lower profits and revenues.
The Dow slid 0.1 percent, the tech-heavy Nasdaq Composite ended little changed and the S&P 500 eased 0.2 percent.
European stocks closed on a mixed note Tuesday as tech shares rallied, offsetting losses in the mining sector.
The pan European STOXX 600 inched up 0.1 percent. The German DAX climbed 0.8 percent, while France’s CAC 40 gave up 0.3 percent and the U.K.’s FTSE 100 declined 0.4 percent.
Business News
European Shares Set To Open Lower As US Earnings Disappoint
2024-07-24 05:27:14
