Clouds gather over 'Mag 7' earnings
Adds graphic
A look at the day ahead in European and global markets from Kevin Buckland
Mega-tech earnings remain in the spotlight on Thursday, particularly after the Bank of Japan's as-expected decision to hold policy steady failed to give the market any new trading cues.
Apple and Amazon, two of the so-called "Magnificent 7", will report results to Wall Street on Thursday, picking up from Meta and Microsoft on Wednesday, and Alphabet the day before that.
That'll leave AI darling Nvidia as the only one left to report, although its financial statement is still three weeks away.
Tesla got things rolling on a high note last week, exciting investors with bold EV sales forecasts.
Alphabet kept the momentum going by beating profit and revenue estimates on strength in YouTube ad sales and its cloud business.
But the mood soured overnight, after Microsoft and Meta flagged ballooning costs from AI investments, making investors antsy about what Amazon will say on the topic.
Alphabet had also noted on Tuesday that AI expenditures would stay high, but at that point in the week it didn't appear to be a trend.
AI fever has driven Wall Street - and by extension many global equity markets - to all-time peaks this year, so any signs of weakness in the rally's foundation are sure to shake markets.
Witness AMD's 10% plunge overnight on disappointing AI chip sales, dragging down shares of no less than Nvidia, among other chipmaking peers.
In Europe, bank earnings still hold centre stage, with BNP Paribas, SocGen and ING among the lenders on deck today.
Santander's international banking conference in Madrid hosts such speakers as Bank of Spain Governor Jose Luis Escriva and Dutch central bank governor Klaas Knot.
Traders are looking for hints the ECB will accelerate rate cuts, with inflation coming down faster than officials originally anticipated.
Bundesbank President Joachim Nagel said on Wednesday that "price stability is not far off", the same day that French central bank chief Francois Villeroy de Galhau said victory against excessive inflation was "in sight".
Euro-area and country-specific inflation figures are due later in the day, along with German retail sales.
The U.S. Fed's preferred inflation measure, the PCE deflator, is also due today, ahead of potentially pivotal monthly payrolls figures on Friday.
The next Fed decision is one week away, and robust macroeconomic indicators recently have pointed to a patient approach to rate cuts - even if data this week has sent some mixed signals.
The Bank of Japan again highlighted risks from the U.S. economy in abstaining from raising rates today, although policymakers expressed confidence they could continue to normalise policy in due course.
One of the risks certain to be on their radar is the U.S. election next Tuesday, which opinion polls still put as too close to call despite a shift in bets towards a Donald Trump win in financial markets and on some prediction websites.
The biggest news for many Japanese today probably came from New York rather than Tokyo, with Shohei Ohtani helping the LA Dodgers to a World Series victory in his first season with the team. $700 million well spent, indeed.
Key developments that could influence markets on Thursday:
-Apple, Amazon report earnings in U.S.
-BNP Paribas, SocGen, ING report earnings in Europe
-Euro area HICP (Oct), German retail sales (Sep)
-U.S. PCE deflator (Sep)
The Magnificent Seven https://reut.rs/4fqh78d
By Kevin Buckland; Editing by Edmund Klamann
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.