European equities lower on earnings data, bonds rise
written by Bella Palmer
Major European markets were mostly down with the pan-European STOXX 600 0.6% lower, Germany's DAX and France's CAC 40 declining nearly 1.3%, and FTSE 100 dropping 0.3%
Major European equity markets were lower on Thursday after a slew of corporate earnings in the U.S. and Europe, while prospects of upcoming policy easing in the US boosted global bonds.
The Fed held interest rates steady on Wednesday but opened the door to a cut in September. Traders were betting that the BoE might move later in the day, with the probability of a quarter-point cut near 60%.
Major European markets were mostly down with the pan-European STOXX 600 0.6% lower, and Germany's DAX and France's CAC 40 both nursing losses of around 1.3%.
Britain's FTSE 100 was 0.3% lower before the BoE's interest rate decision at 1100 GMT.
The fact that some heavyweights are cutting guidance does not bode well going forward and might well explain why European markets are underperforming, according to Stephane Ekolo, equity strategist at TFS Derivatives.
Disappointing set of results, slowing growth for industrials, Chinese consumers no longer there to rescue demand and a possible resurgence of inflation. You have a not so pleasant cocktail, he said.
Nasdaq futures added 0.1% as shares of Facebook-parent Meta Platforms soared 7% pre-market on strong earnings. The index gained 3% on Wednesday, while the S&P 500 jumped 1.6%.
U.S. tech stocks have made an extraordinary comeback after the recent sell-off. AI company Nvidia soared 13% on Wednesday, gaining nearly $330 billion in stock market value.
Tech companies Apple and Amazon.com will report their earnings later on Thursday.
MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.4%, after ending July mostly flat. A regional MSCI IT index climbed 1.7% and Taiwan's shares soared 2%.
The Japanese yen soared to as much as 148.51 per dollar, its strongest level since March 15, a day after the BoJ raised interest rates for the second time in 17 years and signalled more tightening to come.
It was last 0.3% higher at 149.54.
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