📆 Tuesday, August 27
► European shares edged higher as investors looked forward to key earnings reports, with the Stoxx Europe 600 climbing 0.3% at the open. Basic resources led the gains, bolstered by BHP Group full-year profit, which met expectations despite a weaker demand outlook from China. Anglo Americanand Rio Tinto both rose by over 1.5%. However, Germany’s GDP contracted by 0.1% in Q2, confirming market forecasts and adding a note of caution to the otherwise positive market sentiment. Germany remains the “sick man” of the Eurozone.
► US equity futures remained steady after Monday’s tech-led losses on Wall Street. The market saw some profit taking after a strong performance earlier in the month, with the Federal Reserveexpected to start cutting interest rates in September. Nvidia’s earnings report, due on Wednesday, is highly anticipated, as it may provide clarity on AI-driven demand. Investors are cautious amid high expectations and apparently the market wanting to see yet another strong beat and expect the chipmaker to raise its profit guidance. The tech giant's shares dropped 2.3% on Monday, contributing to the market's cautious tone. The “Magnificent Seven” megacaps as a whole dropped 1.2%underperforming Wall Street.
► Asian stocks were mixed, with a slight decline overall as the region awaits Nvidia’s earnings. Hong Kong and mainland Chinese markets opened lower, following losses in South Korea and Australia. The Hang Seng Tech Index fell by as much as 1.8%, driven by a decline in PDD Holdingsdue to a warning of slow sales. Meanwhile, Japanese stocks saw modest gains, despite a firmer JPY. In particular small-cap and domestic-focused firms saw a positive performance.
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