Yahoo Finance Equities Rebound, Huawei Gets Reprieve, Earnings In Focus
The U.S. Equities Are Rebounding In Early Trading
The U.S. equities are moving higher in early Tuesday trading. The major indices have rebound from their Monday lows but the move may be short-lived. Today’s market-driver is news from Washington that gives Huawei a reprieve from newly imposed sanctions. Washington will allow the beleaguered tech firm to continue buying some U.S. product in order to maintain its network. The move is meant to allow Huawei to service its customers but is limited in time. The cut-off point is August 19th.
Google parent Alphabet has already reversed its decision to cut ties with Huawei and others are expected to do the same. Shares of chipmakers rose across the board with most gaining 2.0% or more.
In earnings news, shares of Home Depot, Kohl’s, TJ Maxx, and Autozone were all moving in early trading. Home Depot beat on the top and bottom line and reaffirmed guidance but shares fell anyway. Kohl’s missed by a wide margin as comps fall and inventories drag sending shares down sharply in early trading. Autozone, on the other hand, reported strongly and saw its shares move higher. TJ Maxx also reported strongly and saw its shares trade up about 0.80%.
Europe Up On Hope, UK Lawmakers Get Tough
European markets were moving higher in early Tuesday trading following the news from Washington. Shares were up just about across the board with Germany in the lead. The DAX is up about 0.90% at midday with the FTSE 100 up roughly 0.60% and the French CAC up about 045%. Tech led the advance in terms of sectors and is up about 1.0%. Shares of Norsk Hydro are among the biggest gainers although not because of trade. The company received the OK from Brazil to reopen an alumina plant and shares advanced 5.5%.
In geopolitical news, lawmakers in the UK are beginning to get tough on Theresa May’s opposition. Phillip Hammond, the UK Finance Minister, issued a statement saying the far right opposition was doing deliberate damage to the economy by trying to force a no-deal Brexit. May is expected to unveil a bold new plan early next month.
Asian Markets Are Mixed, China Leads
Asian markets closed the day mixed on Tuesday despite the positive news for Huawei. Mainland Chinese markets led the gains with an advance of 1.23% for the Shanghai Composite. Other gainers in the region posted much smaller advances, the Australian ASX only 0.37% and the Korean Kospi 0.27%. The Japanese Nikkei and Hong Kong Hang Seng both closed with small losses.
This article was originally posted on FX Empire
