📆 Wednesday, May 15
European stock futures edged higher, reflecting cautious optimism ahead of significant US economic data releases. The Stoxx 600 index rose 0.35% despite weak earnings from automotive stocks like Volkswagen, Mercedes-Benz Group, and Stellantis NV. We see positive GDP growth reports from France and Spain. German insurance giant Allianz is flat (+ 0.1%) after earnings that beat estimates. Investors are closely watching the upcoming US consumer price index data, seeking clues about future Federal Reserve policy moves.
US markets remain in wait-and-see mode in the US pre-market as investors await the US Consumer Price Index (CPI) data, which could provide important insights into the Federal Reserve's future monetary policy decisions. The S&P 500 has held up well despite Fed Chairman Jerome Powell's hints that interest rates will remain high for longer. Leading indicators showed a mixed but overall higher (and than expected) Producer Price Index (PPI) in April, which fueled discussion about persistent inflation and its impact on future interest rate adjustments.
Asian markets displayed mixed responses; while shares in Taiwan Semiconductor Manufacturing Co. led gains, contributing to the MSCI All Country World Index reaching a two-year high, mainland Chinese stocks declined and Japanese stocks remained largely unchanged. The Hong Kong market was closed for a holiday. The positive momentum in some parts of Asia was partly due to speculative buying following reports of potential governmental intervention in China's housing market. In corporate news, Tencent Holdings saw its ADR surge after beating revenue estimates, contrasting with Alibaba Group’s profit drop. Hon Hai Precision Industry also saw a decline after reporting lower-than-expected profits, reflecting slow demand for iPhones in China.
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