📆 Thursday, April 25
► Europe's Stoxx 600 Index is little changed amidst a flurry of earnings reports, with Anglo American surging 13% following a takeover bid by BHP Group. AstraZeneca (+5.5%), Barclays (+4.7%), Deutsche Bank (-1.5%), Hermes (-2.8%), Nestle (0.0%) and STMicroelectronics (2.5%) report varied results, highlighting sector-specific challenges, influencing market sentiment as traders digested the implications of these financial disclosures.
► US equity futures came under pressure mainly due to a slump in tech stocks triggered by Meta's slightly worse-than-expected revenue forecast and a mixed Q1 result from IBM. Meta saw strong overselling that caused the stock to fall by (currently) 12% in after-hours trading despite an overall strong and better-than-expected previous quarter. Meta's strong overselling shows how much the market is focused on the earnings of the Big Tech companies and led to the Nasdaq 100 futures falling by almost 1% while the Big Tech companies were trading in the red. IBM also slipped sharply (-9%) after Q1 revenue of $14.46bn missed consensus estimates of $14.55bn. S&P 500 futures fell 0.5%. We see markets bracing for more earnings reports from the technology sector, particularly from Alphabet and Microsoft. In addition, markets are awaiting US GDP data following a $70bn auction, which will have implications for future Fed rate moves.
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