📆 Tuesday, July 23
► The Stoxx 600 Index in Europe is little change as investors turned their attention to a busy week of corporate earnings. Porsche lowered its outlook due to a shortage of aluminum parts, which could halt production of some models, compounding pressure from slowing sales in China. Banco Sabadell’s profit jumped in the second quarter, aiding the CEO's effort to fend off a takeover by BBVA. Markets await several earnings report, most notably from luxury goods conglomerate LVMH which plays a major role, especially for the French CAC40. German software giant SAP reported yesterday (after NYSE closing). SAP's Q2 2024 results show a 10% revenue increase to €8.29 billion, driven by a 25% rise in cloud revenue. The software giant trades more than 6% higher, trading at record levels.
► U.S. equity futures drifted slightly lower following a strong Monday session driven by mega-cap tech stocks. Companies representing 29% of the S&P 500 market value are set to report earnings this week, including tech giants Tesla and Alphabet set to report later today. Also Visa's earnings report, which also is a barometer for US/global consumer demand will be watched closely. Analysts anticipate details on Tesla’s robotaxi service (potentially more about Tesla's humanoid robot plans) and strong growth in Alphabet’s Google Cloud revenue. Positie expectations for both Tesla and Alphabet may keep positive momentum alive in big tech according to our chief analyst Robert Linder. In addition to this, U.S. readings on the economy and the Federal Reserve’s preferred inflation gauge (PCE Price Index) are also expected later this week.
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