Yahoo Finance Wall Street and FTSE lower as investors await Big Tech earnings
A look at how the major markets are performing this Tuesday
The FTSE 100 and European stocks were lower this Tuesday as investors sought direction after several muted sessions.
The FTSE 100 (^FTSE) lost 0.1% to 7,906 points during afternoon trading, while the CAC 40 (^FCHI) in Paris slipped 0.62% to 7,526 points. In Germany, the DAX (^GDAXI) was trading near the flatine, at 15,857.
This week brings a flurry of earnings including Microsoft (MSFT), Meta (META), Amazon (AMZN), and Alphabet (GOOGL).
FTSE 100
The UK's blue chip index slid as new data showed the state of Britain's public finances.
Primark owner, Associated British Foods (ABF.L) reported flat profit at the half-year stage despite strong growth in sales as inflationary pressures ate into margin. Shares were down by 2.51%.
Online grocer Ocado (OCDO.L) saw shares rise 0.91% after it announced plans to shut its customer fulfilment centre in Hatfield, Hertfordshire, in a move impacting around 2,300 workers.
Premier Inn owner Whitbread (WTB.L) said full-year earnings had soared above pre-pandemic levels on the back of strong demand for hotel rooms after the lifting of COVID-19 travel restrictions and unveiled a £300m share buyback. Shares jumped by 4.70%%.
The UK government's debt interest payments fell to £3.9bn in March, a fifth of its peak from June 2022.
Read more: UK banks: Here’s what to expect from Q1 results
However, total debt interest payments for last financial year was £106.6bn, nearly 50% higher than in the previous financial year for 2021/22.
US and Asia
US stocks were lower on Tuesday at the open as tech conglomerates were set to highlight a busy earnings week.
The Dow Jones (^DJI) dipped below the flatline to trade at 33,852 points. The S&P 500 (^GSPC) slipped 0.41% to 4,120 points and the tech-heavy NASDAQ (^IXIC) tumbled 0.55% to 11,969.
This week will bring a flood of earnings including several big tech companies — Microsoft, Meta, Amazon, and Alphabet — whose shares have pushed the S&P to rally so far this year.
“Everyone’s just waiting for tech earnings,” said Chris Harvey, head of equity strategy at Wells Fargo Securities. “This is a very, very busy week for earnings, so we’re just treading water.”
Alphabet and Microsoft are scheduled to report after the bell. Alphabet stock is up 20.1% this year while Microsoft has gained more than 17.5%. Amazon and Meta earnings are on deck for later this week.
Read more: Trending tickers: Microsoft | Alphabet | Visa | UBS | Anglo-American
In Asia, markets were broadly lower on Tuesday, with tech stocks leading losses in Hong Kong.
Tokyo’s Nikkei 225 (^N225) gained 0.09% to 28,620 points, while the Hang Seng (^HSI) in Hong Kong lost 1.77% to 19,606. The Shanghai Composite (000001.SS) slipped 0.66% to 3,253 points.
Investors will be closely watching the Bank of Japan monetary policy meeting later this week, the first to be led by new BoJ chief Kazuo Ueda.
Pound
The pound’s (GBPUSD=X) rally against the dollar has stalled, with sterling trading at $1.2400.
However, the long game remains bullish for the pound, with year-to-date gains on the GBP/USD pair coming to over 2.8%.
Sterling (GBPEUR=X) also lost ground against the euro to trade at €1.1290.
Fiona Cincotta, senior financial markets analyst at City Index, said: "GBP/USD is falling away from 1.25 after solid gains in the previous session after the pound capitalised on the weaker USD."
Oil markets
Meanwhile, Brent crude (BZ=F) lost ground and was trading at around $81 per barrel as investors weighed strong holiday travel in China that could boost fuel demand with the prospect of rising interest rates elsewhere slowing economic growth.
“Oil is struggling to find direction at the moment with a lack of fresh catalysts and still plenty of uncertainty over the demand outlook,” Warren Patterson, head of commodities strategy at ING in Singapore, said.
Watch: Asia, emerging markets likely to outperform, NF Trinity CIO says
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