Stock market watch: global markets in turmoil
European stocks are expected to start the day with lower values, following drops in the US and Asia-Pacific markets. The concern is that economic growth might slow down because of higher interest rates.
(AI Video Transcript)
European stocks
European stocks are expected to start the day with lower values, following drops in the US and Asia-Pacific markets. The concern is that economic growth might slow down because of higher interest rates. This has caused more uncertainty and may lead to lower-risk investments. The speaker mentions some companies' earnings reports, like MECA, which initially had good numbers but later faced issues with ad revenue because of the conflict in Gaza.
Ford
There is also good news about the auto workers union at Ford, indicating positive progress in labor negotiations. The speaker gives an overview of market movements, saying that volatility is high and people are avoiding risky investments. They comment on the opening values for London and German markets, which are expected to be lower. In the Asia-Pacific region, there are overall declines, with the Nikkei experiencing the biggest drop.The agreement reached between the UAW and Ford, which could end a six-week strike. Ford will release earnings after the closing bell.
The US market
The US market, particularly tech stocks. They note that the Nasdaq and S&P 500 have reached a point where they might drop even further. However, the Dow is performing relatively better and has not reached a critical level. The speaker discusses upcoming economic data, like the interest rate decision from the European Central Bank. They expect rates to stay the same because of concerns about inflation and the impact of the Middle East conflict on energy prices. They also mention the release of US GDP data and other economic indicators.
EUR/USD
A technical analysis of currency pairs, focusing on the EUR/USD trade shiws a decrease that might continue. The movement of the dollar against the pound and the yen, noting a significant increase in the dollar-yen pair.
Earnings reports
Earnings reports, including those from companies like Unilever, Standard Chartered, Danone, TotalEnergies, BNP Paribas, ST Microelectronics, Meta(formerly Facebook), IBM, and Amazon. They highlight positive results for Unilever and Meta, but poor earnings and outlook for Standard Chartered and ST Microelectronics.
Gold prices
Gold prices have gone up, even though the dollar is stronger. This might be because gold is seen as a safe investment during uncertain times.
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