Wall Street indices ended yesterday's session in mixed sentiment. Stocks showed volatility as traders analyzed the latest bank results and statements from two Federal Reserve members who favored rate hikes at the upcoming meeting to combat high inflation.
The S&P 500 ended 0.09% higher on the day. The Dow Jones lost 0.03% and the Russell 2000 small-cap index lost 0.4%. The Nasdaq index of technology companies lost 0.04%.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appMixed sentiment was also shared by Asia-Pacific indices, with the Nikkei losing 0.27%, the S&P/ASX 200 losing 0.01%, the Kospi gaining 0.34% and the Nifty 50 trading 0.14% lower.
European equity futures pointed to a slightly higher opening for the Euro Stoxx 50 benchmark.
The FX market does not show excessive volatility just before the start of the session on European exchanges. Against the broad market, the Japanese yen shows relative weakness. The EURUSD pair is recording slight declines and testing the support zone in the region of 1.0965.
The Hong Kong Monetary Authority (the institution that acts as Hong Kong's central bank) intervened to support the Hong Kong dollar, which had fallen below the lower band of the permitted trading band. The Hong Kong Monetary Authority (HKMA) bought about 6.9 billion Hong Kong dollars to support the currency.
Among others, the following will present their quarterly results today: ASML, Heineken, Just Eat, American Airlines, IBM, Tesla and Morgan Stanley.
Netflix improved y/y results and managed to beat the lower end of analysts' predictions, but missed its forecast for new subscriber numbers and lowered its Q2 guidance. ASML reported its results just before the start of the European session. ASML Q1 23:
-Gross margin: 50.6% (49.8% expected)
-Revenues: EUR 6.75 billion (forecast EUR 6.31 billion)
-Total demand still exceeds production capacity for the year
-Company forecasts Q2 net sales in the range of EUR 6.5bn to EUR 7.0bn (forecast EUR 6.42bn)
JP Morgan raised its forecast for China's full-year GDP growth in 2023 to 6.4% (from 6%)
Bank of America's CEO says "all signs point to the occurrence of a relatively mild recession in the US".
Lane from the ECB communicated that the Bank will raise interest rates in May by +25 bps or +50 bps. The size depends on incoming data from the economy.
Yellen to deliver major speech on Thursday on US-China economic ties
API Institute's private survey of crude oil inventories shows larger than expected ty
Energy crude is recording lower levels today. WTI crude oil loses 0.19%, while natural gas is down 1.4%.
Heatmap of volatility in the FX market today. Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
