(Bloomberg) — Equity markets slipped on Wednesday after tech giant Microsoft Corp. and a slew of other major firms forecast slowing earnings, while lackluster US business activity data reminded investors of the likelihood of recession in the world’s biggest economy.
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Contracts for the Nasdaq 100 fell more than 0.5%, after a two-day rally in the underlying index ground to a halt on Tuesday when Microsoft warned of decelerating revenue growth in its cloud-computing business. Earnings reports from companies such 3M Co. and chipmaker Texas Instruments Inc. also reinforced concerns about the health of corporate America and added to investors’ jitters as they await updates from the likes of Tesla Inc. and IBM Corp.
Europe’s Stoxx 600 equity index weakened too, with shares in major software firms such as SAP SE and Sage Group Plc. feeling the heat from Microsoft and Dutch chip-tool maker ASML Holding NV posting a profit miss.
“The risks that dominated 2022 trading would seem to still pose major hurdles to a lasting equity bull market; namely, economic uncertainty, approaching recession, and a hawkish Fed actively wanting to keep financial conditions from loosening,” Bank of America strategists told clients in a note.
The Federal Reserve is widely expected to raise interest rates by 25 basis points at its upcoming meeting and expectations it will soon wind down its policy-tightening cycle have weighed on the dollar and Treasury yields. The dollar, down around 1.8% this year, was hurt on Tuesday by data showing US business activity still in contractionary territory.
However, the greenback’s gauge held around flat on Wednesday, as the yen, euro and pound retreated and the global market mood soured.
The euro slipped for the first time in six sessions, while the pound edged lower as data showed sharp declines in factory costs, fanning speculation that the Bank of England is close to completing its rate-hiking cycle. The Australian dollar on the other hand jumped to the highest since August after scorching inflation figures, that boosted rate-hike bets and sent 10-year Australian yields soaring about 10 basis points.
Elsewhere, oil prices steadied after Tuesday’s sharp decline caused by the weak US business activity, while gold inched lower after recent gains that pushed the precious metal to the highest level since April.Bitcoin fell as much as 2.5% and faced its first two-day drop this year.
Schlëssel Evenementer dës Woch:
Earnings for the week include: Abbott Laboratories, ASML Holding, AT&T, Boeing, International Business Machines, NextEra Energy, Tesla (Wednesday); American Airlines, Blackstone, Comcast, Diageo, Intel, LVMH Moet Hennessy Louis Vuitton, Mastercard, SAP, Southwest Airlines, Visa (Thursday); American Express, Charter Communications, Chevron, HCA Healthcare (Friday)
US MBA Hypothéik Uwendungen, Philadelphia Fed Net-Fabrikatioun Aktivitéit, Mëttwoch
US fourth-quarter GDP, new home sales, initial jobless claims, Thursday
US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday
E puer vun den Haaptbeweegungen op de Mäert:
Stock
S&P 500 Futures sinn 0.3% gefall wéi 3:37 Auer New York Zäit
Nasdaq 100 Futures gefall 0.6%
Futures um Dow Jones Industrial Average falen 0.2%
De Stoxx Europe 600 ass 0.1% gefall
Den MSCI Weltindex gouf wéineg geännert
S&P 500 Futures gefall 0.3%
Nasdaq 100 Futures gefall 0.6%
De MSCI Asia Pacific Index ass ëm 0.3% geklommen
Den MSCI Emerging Markets Index ass 0.2% eropgaang
Währungen
De Bloomberg Dollar Spot Index war wéineg geännert
Den Euro gouf wéineg geännert op $ 1.0889
D'britesch Pond gouf wéineg geännert bei $1.2327
De japanesche Yen gouf wéineg geännert bei 130.27 pro Dollar
Den Offshore Yuan ass 0.1% op 6.7746 pro Dollar eropgaang
Crypto Währungen
Bitcoin ass 0.9% op $22,690.21 gefall
Ether ass 3% op $ 1,551.68 gefall
Obligatiounen
D'Rendement op 10-Joer Schatzkäschten ass ee Basispunkt op 3.44% erofgaang
Däitschland's 10-Joer Rendement ass 2.13 Basispunkten op XNUMX% erofgaang
Groussbritannien säin 10-Joer Rendement ass op véier Basispunkte op 3.23% erofgaang
COMMODITIES
West Texas Mëttelstuf Roh klëmmt 0.2% op $ 80.33 pro Barrel
Gold Futures falen 0.1% op $ 1,949.60 eng Unze
Dës Geschicht gouf mat der Hëllef vu Bloomberg Automation produzéiert.
-Mat Hëllef vum Richard Henderson.
Déi meescht gelies vun der Bloomberg Businessweek
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Source: https://finance.yahoo.com/news/asian-stocks-stumble-tech-damps-004428261.html