The main stock indices of the United States have fallen during the day, as the value of assets in the whole world is affected by the attempts to contain the Covid-19 in mainland China and the nervousness before the next corporate results of the Big Tech.
The Nasdaq Composite led the losses with a 3.09% decline and remained on the decline in recent weeks, with technology stocks taking the brunt of worse growth expectations and global uncertainty. For its part, the Dow Jones fell 1.68%, while the S&P fell 1.77%.
A strong first quarter corporate reporting season initially helped temper concerns about a possible 50 or even 75 basis point hike from the Federal Reserve.
Companies such as United Parcel Service, General Electric and Pepsico yesterday exceeded analysts’ estimates in their corporate results, while today those of Alphabet and Microsoft will be known, tomorrow those of Meta and on Thursday those of Twitter, Amazon and those of the second quarter Apple tax.
“It’s a great week for US corporate earnings,” Chris Weston, head of research at Pepperstone Financial Pty, wrote in a note picked up by Bloomberg. While China is “the elephant in the room,” according to Weston, the resilience shown by large companies could adjust risk perceptions.
In the local scenario, the IPSA was trading flat (-0.07%) at 4,755 points. The stock that pushed the index up the most was the shipping company CSAV, with an increase of 5.6%, while Embotelladora Andina (-2.94%) and Enel (-2.56%) led on the loss side. . Thus, the local selective is largely coupled with global perspectives.
Europe and Asia
In the Old Continent, stocks were also influenced by the deterioration in expectations and the main indices closed in the red. The declines were led by the German DAX (-1.2%), followed by the pan-European Euro Stoxx 50 (-0.96%). The French CAC 40 fell 0.54% and only the British FTSE 100 managed to remain positive, with a slight increase of 0.08%.
“Investors are once again worrying about economic growth, picking up the dominant theme late last week,” Chris Beauchamp of online trading platform IG told Reuters. “While … the nerves over this week’s big tech earnings have come to the fore,” he says of upcoming big tech financial reports.
Stocks in Asia-Pacific closed with mixed results. On the one hand, the Japanese Nikkei and Hong Kong’s Hang Seng advanced 0.41% and 0.33%, respectively. On the other hand, the mainland China CSI 300 lost 0.81%. The Chinese selective is the one that has lost the most so far this year (-23.4%) and has been affected by the sanitary confinements in the Shanghai area and lately in the capital of the Asian giant, Beijing.
On the commodity side, gold rose after beginning an upward trajectory yesterday after a week of declines. The gold metal advanced 0.32% and was trading back above the $1,900 mark, more specifically at $1,903 an ounce, according to Bloomberg.
“Gold is expected to struggle to hold onto gains as concerns about the Fed’s increasingly aggressive battle against inflation outweigh growing fears about a potential recession,” Exinity chief market analyst Han told Reuters. So.
Oil, meanwhile, is also on the rise. Brent crude gains 3.35% and is trading at US$105.82 a barrel, while WTI rises 3.85% to settle at US$102.3 a barrel, reversing declines that were associated with the prospect of lower activity due to the lockdowns in China.
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