Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Stocks gear up for Big Tech earnings; yen sits near danger zone

Stocks gear up for Big Tech earnings; yen sits near danger zone

By Amanda Cooper

LONDON (Reuters) – Global shares rose on Tuesday, driven by a recovery on Wall Street, where investors focus on earnings reports from the U.S. megacaps, while the yen hit a new 34-year low against the dollar, prompting a warning from Japanese officials.

The MSCI All-World index, which on Friday hit a two-month low, was up 0.3%, lifted by gains in Europe, where the FTSE 100 scaled a record high, while the STOXX 600 traded at one-week highs thanks to the technology sector.

Adding to the optimism was a series of surveys of business activity that showed Germany returned to growth in early April after months of contraction, while activity in the broader euro zone expanded at its fastest clip in nearly a year.

Investors are less concerned right now about the threat of a major re-escalation of tension in the Middle East and more focused on earnings.

Against that backdrop, gold is heading for a week-on-week drop of 3.2%, its largest this year, while oil has backed off last week’s highs.

“We are turning a bit more positive on risk sentiment. There still remains a fair bit of uncertainty around geopolitics and rising U.S. real yields, but we are more positive than we were a week ago,” Mohit Kumar, a strategist at Jefferies, said.

The dollar retreated from its recent highs, but is comfortably supported by the view among investors that no rate cuts will be forthcoming any time soon from the Federal Reserve and by the climb this month in Treasury yields to their highest since November.

On Wall Street, big tech shares outperformed ahead of quarterly results this week, sending the Nasdaq 1.1% higher. AI darling Nvidia gained 4.4% while rose 1.5% and Alphabet jumped 1.4%, although Tesla dropped 3.4% after it cut prices in its major markets.

Tuesday brings a wealth of big-cap earnings, including Tesla, PepsiCo, UPS, Lockheed Martin and Halliburton

“Odds are the earnings reports that we see over the next few weeks will be positive, but obviously there’s still issues around what the Fed will do the next,” said Shane Oliver, chief economist at AMP, noting that security concerns also remained. “It’s too early to say that problems in the Middle East have gone away.”

“There are lots of things that could cause volatility between now and the end of the year. And so we’re probably coming to a more constrained, more volatile period for markets.”

Aside from Tesla, Meta Platforms, Alphabet and Microsoft will release earnings this week.


UBS on Monday downgraded its rating on the mega-cap companies, warning that profit growth momentum of the so-called Big Six technology stocks could “collapse” over the next few quarters.

U.S. business activity, quarterly economic growth and a measure of monthly inflation top the macro data bill this week.

Traders now expect the first Fed rate cut to come most likely in September and see just 40 basis points’ worth of cuts this year, compared with expectations for 150 bps of cuts at the beginning of the year.

Treasuries have been a big casualty of the shift in thinking. The yield on the two-year note, the most sensitive to changes in rate expectations, was up 1.8 bps at 4.898%.

In Europe, the picture is different. The European Central Bank is expected to cut in June and this divergence is weighing on the euro. It was last up 0.14% at $1.0667, not far off last week’s five-month low of $1.0601.

The yen slid to another 34-year low on Tuesday, but recovered modestly to trade flat at 154.79 to the dollar.

Japan’s finance minister Shunichi Suzuki said last week’s trilateral meeting with his U.S. and South Korean counterparts laid the groundwork for Tokyo to take appropriate action in the foreign exchange market.

This is the clearest warning yet from Japanese monetary authorities that tolerance for the slide in the currency is wearing thin and official intervention to prop it up is likely.

Oil pared earlier gains and fell modestly as investors continued to assess the situation in the Middle East. Brent futures were last down 0.4% at $86.63 a barrel, while U.S. crude fell 0.5% to $81.49.

Gold fell for a second day, dropping 1% to $2,320 an ounce, after shedding 2.7% the day before, as investors took profit on the 12% rally in the price so far this year.


(Additional reporting by Stella Qiu in Sydney. Editing by Sam Holmes, Kim Coghill, Ros Russell and Tomasz Janowski)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts