Stock markets: Europe set for another opening in the red; oil breaks through the $110 mark
SpaceX and Netflix are due to report their quarterly earnings today, whilst results from artificial intelligence giants such as Meta and Tesla are expected later this week.
The main European stock markets continue to fall, with futures pointing to another opening in the red for the Old Continent, caught between the earnings season now in full swing and a climate of tension fuelled by protests in various European countries. Euro Stoxx futures are down 0.55 per cent, with Milan seeing the sharpest falls: -2.03 per cent; the Frankfurt DAX is down 0.23 per cent and the Paris CAC is down 1.78 per cent on a day when Parliament is set to vote on the first part of the budget bill. This performance mirrors developments in Asia, where stock markets are recording widespread declines, with the Nikkei currently down 1.5 per cent.
At a macro level, attention is focused on UK unemployment figures, whilst on the earnings front, Netflix, General Electric, General Motors and 3M are due to report their results today. Tomorrow, it will be the turn of the giants IBM, Meta and Tesla. All this comes as tech shares have come under pressure once again, whilst sentiment towards investments linked to artificial intelligence has remained volatile ahead of the quarterly results from major companies, which will test the sustainability of the gains seen in chipmakers’ shares.
Meanwhile, on the energy front, oil prices are rising again, with Brent breaking through the $110 per barrel mark ($110.61), up 0.96 per cent, whilst WTI stands at $98.71 (+0.22 per cent). Gas prices in Amsterdam are also on the rise, trading at 88.42 euros per megawatt-hour (+0.43 per cent).
In the foreign exchange market, the euro has strengthened slightly against the dollar to 1.1230 (1.1217 at yesterday’s close); the euro/yen stands at 177.55 (177.7), whilst the dollar/yen stands at 158.09 (158.41).
Asian stock markets in the red; Nikkei falls by 1.49%
Asian stock markets saw across-the-board falls, whilst oil prices rose amid geopolitical risks that have shaken market sentiment ahead of key earnings reports from leading companies in the artificial intelligence sector. At the close in Tokyo, the Nikkei fell by 1.49 per cent. Shanghai (-0.59%), Shenzhen (-0.81%) and Hong Kong’s Hang Seng (-1.29%) also performed poorly. The Kospi plummeted, losing 4.84 per cent.
