Equity markets slipped on Wednesday and the dollar stayed under pressure against other global currencies, undermined by forecasts of slowing growth at tech giant Microsoft Corp. and weaker-than-expected business activity figures in the world’s biggest economy.
(Bloomberg) — Equity markets slipped on Wednesday and the dollar stayed under pressure against other global currencies, undermined by forecasts of slowing growth at tech giant Microsoft Corp. and weaker-than-expected business activity figures in the world’s biggest economy.
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 index opened weaker too, with Dutch chip-tool maker ASML Holding NV posting a profit miss, and software firms such as SAP SE and Sage Group Plc. feeling the heat. Japanese stocks earlier rallied, touching the highest in over a month.
In currency markets, a dollar gauge held around flat, as the yen, euro and pound retreated. The greenback, down around 1.8% this year, was hurt on Tuesday by data showing US business activity still in contractionary territory.
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.
Key events this week:
- 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 mortgage applications, Philadelphia Fed non-manufacturing activity, Wednesday
- 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
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 0.3% as of 3:37 a.m. New York time
- Nasdaq 100 futures fell 0.6%
- Futures on the Dow Jones Industrial Average fell 0.2%
- The Stoxx Europe 600 fell 0.1%
- The MSCI World index was little changed
- S&P 500 futures fell 0.3%
- Nasdaq 100 futures fell 0.6%
- The MSCI Asia Pacific Index rose 0.3%
- The MSCI Emerging Markets Index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0889
- The British pound was little changed at $1.2327
- The Japanese yen was little changed at 130.27 per dollar
- The offshore yuan rose 0.1% to 6.7746 per dollar
Cryptocurrencies
- Bitcoin fell 0.9% to $22,690.21
- Ether fell 3% to $1,551.68
Bonds
- The yield on 10-year Treasuries declined one basis point to 3.44%
- Germany’s 10-year yield declined three basis points to 2.13%
- Britain’s 10-year yield declined four basis points to 3.23%
Commodities
- West Texas Intermediate crude rose 0.2% to $80.33 a barrel
- Gold futures fell 0.1% to $1,949.60 an ounce
This story was produced with the assistance of Bloomberg Automation.
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