A look at the day ahead in European and global markets from Tom Westbrook:
Giants of tech and luxury goods have turned in mixed reports. Microsoft and Google parent Alphabet each beat forecasts, but their share prices went in opposite directions as investors zeroed in on cloud computing.
Google shares fell 6% in after-hours trade. Microsoft shares rose 4%, leaving Nasdaq 100 futures down 0.3% in Asia.
Here’s the wrapup of the pair’s results.
Facebook parent Meta reports after-market on Wednesday. Its shares had fallen on Tuesday and slipped a little further after hours as dozens of U.S. states sued the company and its Instagram business, accusing them of addicting teens.
On the luxury front Kering, owner of Gucci and Balenciaga, reported a bigger-than-expected drop in third-quarter sales. That was worse than the slowdown reported by LVMH, and the surprise jump in sales logged by Birkin-bag maker Hermes on Tuesday, which sent its shares up 3%.
Gucci’s revamped look, unveiled last month in Milan by designer Sabato De Sarno, is yet to hit stores.
European loans data and a survey of German business conditions will be closely watched later on Wednesday. Santander, Deutsche Bank and Dassault Systemes also report results.
In Asia, China’s plans to raise a trillion yuan ($137 billion) in sovereign debt boosted Chinese shares in anticipation of spending and lifted MSCI’s broad index of Asia ex-Japan stocks away from Tuesday’s 11-month low. [MKTS/GLOB]
Central Huijin’s vow to buy exchange-traded funds and keep doing so was also reminiscent of similar announcements from the state fund that drove strong rallies in 2013 and 2015. [.SS]
The Aussie dollar was the main mover in the foreign exchange market, rising as surprisingly strong inflation data prompted traders to re-price the risk of another rate hike.
Just this week, RBA Governor Michele Bullock said the bank would not hesitate to raise its 4.1% cash rate if there was a “material” upward revision to the inflation outlook.
Key developments that could influence markets on Wednesday:
Economics: Euro zone lending, German business survey
Earnings: Dassault Systemes, Deutsche Bank, CME Group, Hilton, Boeing and, after market close, IBM and Meta
($1 = 7.3118 Chinese yuan)
(Reporting by Tom Westbrook. Editing by Sam Holmes)
