Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
International Market Update
- European stock markets closed higher Tuesday, recouping some losses from Monday’s sharp selloff as investors sifted through a string of fresh corporate earnings. The pan-European Stoxx 600 closed about 0.8% higher, with banks leading the gains with a 2.9% gain, while most sectors and major bourses closed in positive territory. Technology stocks, on the other hand, fell 0.8%. Among individual stocks, Ericsson surged nearly 8% after beating fourth-quarter earnings expectations, with gains supported by strong demand for 5G networking equipment.
- The Dow Jones Industrial Average closed lower Tuesday, but rebounded from its lows in another roller-coaster session as the Federal Reserve prepares investors for tighter monetary policy. Banks and energy stocks, sectors that could benefit from a recovering economy and higher yields, led Tuesday’s comeback. The yield on the benchmark 10-year Treasury note continued its rise from 2022 to around 1.78% on Tuesday. Tech stocks struggled in the face of rising interest rates.
- Asian stock markets got off to a cautious start this morning after another volatile session on Wall Street, as investors awaited the outcome of the Fed’s late afternoon meeting and any hints of faster monetary tightening. Chinese tech stocks recovered slightly after the previous day’s losses, with Tencent up nearly 2% and JD up 1%. Markets in Australia and India are closed for holidays.
In International news
Microsoft surpasses profit and revenue
Microsoft reported fiscal second-quarter profit and revenue that beat expectations. The stock initially dipped in extended trading, but turned higher after the company issued a revenue forecast that also beat estimates. Revenue rose 20% from the year-ago quarter, compared with growth of nearly 22% in the previous quarter, it said in a statement. Microsoft’s net income rose 21% to $18.77 billion. The company had $36.77 billion in unrealized revenue at year-end, below the StreetAccount consensus of $36.90 billion. Microsoft said it expects to book 45% of its remaining $152 billion in performance obligations next year. That’s the first time that percentage has slipped below 50% since at least 2017.
Ericsson beats forecast as 5G demand offsets China woes
Ericsson beat forecasts for quarterly core earnings Tuesday, sending its shares up 8%, as global demand for telecom equipment for 5G networks offset further market share losses in mainland China. The company’s adjusted quarterly operating profit rose to 11.9 billion Swedish kronor
($1.28 billion) from 11 billion a year ago, beating analysts’ average forecast of 10.30 billion, according to Refinitiv data. Excluding restructuring charges, operating profit rose to 12.3 billion kronor. While Ericsson’s total quarterly revenue rose 2% to 71.3 billion kronor, beating estimates of 68.33 billion kronor, revenue in mainland China fell by 1.8 billion kronor. ($1 = 9.2836 Swedish kronor)