LONDON: European stock markets largely steadied Monday after some losses in Asia, as investors awaited earnings from US tech behemoths this week.
All eyes will be on results from the likes of Amazon, Facebook owner Meta, Google-parent Alphabet and Microsoft.
The companies’ health and outlook reports could give clues regarding the Federal Reserve’s next move regarding interest rates.
European shares end fifth week higher on earnings boost
There is uncertainty on when the Fed will end its campaign of raising rates, let alone when it could begin to cut borrowing costs.
Inflation remains elevated, but there is an expectation that the US and other economies could avoid falling into recession this year.
A survey Monday revealed that business confidence in Germany, Europe’s biggest economy, edged up in April.
At the same time, analysts warned that optimism about falling energy prices and China’s reopening was being offset by worries about higher interest rates.
Stephen Innes of SPI Asset Management noted that China’s rebound following the end of its growth-sapping zero-Covid policies was likely to cool, relying now on higher income growth and improved consumer sentiment.
“So the easy part is done; now, the consumer will need to do the bulk of the heavy lifting,” he said.
Also this week, investors will be watching important economic data from South Korea, Australia and the eurozone, as well as Bank of Japan chief Kazuo Ueda’s approach as he chairs his first key policy meeting.
Responding to questions in parliament on Monday, Ueda suggested the bank would stay the course in terms of monetary stimulus, adding that inflation was expected to cool below two percent in the second half of the fiscal year ending next March.
Elsewhere on the corporate front, Credit Suisse revealed that more than $68 billion was withdrawn in the first three months of 2023, in what are likely its final quarterly results before it is swallowed by rival UBS.
The bank saw its net profit swell to $13.9 billion, up from a significant loss a year earlier, after holders of high-risk Credit Suisse debt were wiped out in the emergency takeover deal.
Key figures around 1100 GMT
London - FTSE 100: DOWN 0.1 percent at 7,907.84 points
Frankfurt - FLAT at 15,880.95
Paris - CAC 40: FLAT at 7,574.03
EURO STOXX 50: DOWN 0.1 percent at 4,405.23
Tokyo - Nikkei 225: UP 0.1 percent at 28,593.52 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,959.94 (close)
Shanghai - Composite: DOWN 0.8 percent at 3,275.41 (close)
New York - Dow: UP 0.1 percent at 33,808.96 (close)
Euro/dollar: UP at $1.1016 from $1.0993 on Friday
Pound/dollar: FLAT at $1.2446
Dollar/yen: UP at 134.60 yen from 134.09 yen
Euro/pound: UP at 88.49 pence from 88.30 pence
West Texas Intermediate: DOWN 0.2 percent at $77.68 per barrel
Brent North Sea crude: DOWN 0.4 percent at $81.34 per barrel
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