The S&P 500 and Nasdaq 100 posted modest gains, paring monthly drops in the indexes that amount to the worst since March 2020 and October 2008, respectively. Europe’s energy crisis, China’s struggle to suppress Covid and an aggressive Federal Reserve conspired to drive major bourses in Europe and the U.S. to their lowest since mid-March this week.
Gains in Microsoft Corp. on better-than-expected results helped lift sentiment after Tuesday’s tech-fueled slump. Boeing Co. fell after it burned more cash than Wall Street expected. Alphabet Inc. lost 4.2% on disappointing sales. Meta Platforms Inc. highlights reports after the close.
In Europe, Mercedes-Benz AG and Michelin reported earnings beats, helping to turn around an earlier loss in the Stoxx 600 Europe Index and propelling automakers to session leaders.
“Overall earnings are not that bad and that should come as a support to the market right now,” said Barclays Plc strategist Emmanuel Cau. “It’s essential to focus on earnings to figure out what you want to buy and what you want to sell.”
The ICE U.S. dollar index rose to a five-year high, while the euro touched the weakest level versus the greenback since 2017 as Russia said it will stop natural gas flows to Poland and Bulgaria. European gas prices surged as traders weighed the risk of other countries being hit next, spurring worries over a further spike in inflation and a sharp slowdown in the economy.
Fears that the Fed would tip the world’s largest economy into a recession have plagued markets all week, all while activity slows in China as Covid lockdowns bite. Treasuries retreated but the 10-year yield, at about 2.75%, remains lower for the week.
“The backdrop for risk assets continues to be weak, and wasn’t helped by headlines of Russia halting gas supplies to Poland,” wrote Mizuho International Plc strategists including Peter Chatwell. “If we get closer towards the 4200 level on the S&P 500, this may bring some temporary relief for risk, especially with the potential for some earnings positivity today.”
Scheduled to report next are Boeing Co., T-Mobile US Inc., Kraft Heinz Foods Co. and Meta Platforms Inc. Also helping the sentiment today was China’s President Xi Jinping’s vow for more infrastructure projects — the latest step to support a lockdown-hit economy.
Twitter Inc. fell in premarket trading, set to extend losses on Wednesday as shares drop further below Elon Musk’s offer price of $54.20 per share. Tesla Inc. advanced after slumping on Tuesday.
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Events to watch this week:
- Tech earnings include Meta Platforms, Amazon, Apple
- EIA oil inventory report, Wednesday
- Bank of Japan monetary policy decision, Thursday
- U.S. 1Q GDP, weekly jobless claims, Thursday
- ECB publishes its economic bulletin, Thursday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.3% as of 9:30 a.m. New York time
- The Nasdaq 100 rose 0.2%
- The Dow Jones Industrial Average rose 0.5%
- The Stoxx Europe 600 rose 0.5%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index rose 0.5%
- The euro fell 0.9% to $1.0542
- The British pound fell 0.2% to $1.2550
- The Japanese yen fell 0.7% to 128.11 per dollar
Bonds
- The yield on 10-year Treasuries advanced three basis points to 2.75%
- Germany’s 10-year yield declined three basis points to 0.79%
- Britain’s 10-year yield advanced one basis point to 1.81%
Commodities
- West Texas Intermediate crude fell 1.4% to $100.27 a barrel
- Gold futures fell 0.7% to $1,891.40 an ounce
Источник: https://www.bloomberg.com/