Europe stocks rise but Wall Street falls as tech falters

Europe stocks rise but Wall Street falls as tech falters

Europe stocks rise but Wall Street falls as tech falters

Europe stocks rise but Wall Street falls as tech falters

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European and Asian stock markets soared on Friday, but Wall Street fell after Amazon, Apple, and Intel reported poor earnings.

Investors were following a flurry of economic and corporate headlines, including Chinese officials signaling that their crackdown on the country’s tech sector could be eased and statistics showing the eurozone economy weakened in the first quarter.

Traders are also dealing with the Ukraine conflict, China’s Covid blockade, increasing inflation, and the possibility of an interest rate hike in the United States next week.

European stock markets ended the day higher, despite statistics revealing that the eurozone’s growth slowed to 0.2 percent in the first quarter, while inflation remained at record highs.

There was some much-needed good news for China’s embattled tech sector.

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The official Xinhua news agency reported that a meeting of the government’s decision-making body ended with officials saying it was “necessary to promote the healthy development of the platform economy” and “complete its rectification”.

The research suggests that the government’s broad crackdown on the country’s largest corporations will be eased.

Officials stated there was a need to “react to market concerns in a timely manner” at the Politburo meeting, which was led by President Xi Jinping.

The stock markets in Hong Kong and Shanghai both ended the day with gains of more than 2%.

However, investors are concerned about the US tech sector after Amazon reported its first quarterly loss since 2015 on Thursday and warned of further troubles ahead.

In lunchtime trading, Wall Street was lower, with the tech-heavy Nasdaq index down 1.6 percent and Amazon shares down more than 12 percent.

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Apple shares also fell a day after the company reported solid profits but warned that it could take a hit of as much as $8 billion due to China’s Covid lockdown and ongoing supply chain bottlenecks.

“Amazon was the latest to catch Wall Street off guard, reporting its first loss since 2015 amid a multitude of challenges facing the company,” said Craig Erlam, an analyst at forex platform OANDA.

“Like many others, the company is struggling to adjust to post-pandemic life having scaled up massively over the last couple of years,” Erlam said.

Shares in chip-making giant Intel fell as well following a disappointing forecast.

Investors also digested mixed US economic data as incomes and personal consumption expenditures climbed more than expected last month, but prices rose as inflation persists.

– Oil up, dollar drops –

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In foreign exchange, the dollar dropped on profit-taking after surging to multi-years highs against the yen and euro this week with the US Federal Reserve set to aggressively hike interest rates to combat soaring inflation.

Oil prices rose elsewhere on Friday, as tight Russian supply fears countered lower demand worries fueled by China’s lockdowns.

ExxonMobil’s first-quarter profits more than quadrupled to $5.5 billion, thanks to rising oil prices that more than offset expenditures associated with the company’s departure from the Sakhalin project in Russia.

Following Russia’s invasion of Ukraine in 1995, the US energy giant announced a phased departure from the massive Sakhalin offshore oil field it has operated since 1995.

The change cost the company $3.4 billion in one-time charges during the quarter.

– Key figures at around 1345 GMT –

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New York – Dow: DOWN 0.9 percent at 33,597.44 points

London – FTSE 100: UP 0.5 percent at 7,544.55 (close)

Frankfurt – DAX: UP 0.8 percent at 14,097.88 (close)

Paris – CAC 40: UP 0.4 percent at 6,533.77 (close)

EURO STOXX 50: UP 0.9 percent at 3,726.21

Hong Kong – Hang Seng Index: UP 4.0 percent at 21,089.39 (close)

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Shanghai – Composite: UP 2.4 percent at 3,047.06 (close)

Tokyo – Nikkei 225: Closed for a holiday

Euro/dollar: UP at $1.0539 from $1.0509 late Thursday

Pound/dollar: UP at $1.2561 from $1.2468

Euro/pound: DOWN at 83.89 pence from 84.25 pence

Dollar/yen: DOWN at 129.84 yen from 130.79 yen

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Brent North Sea crude: UP 1.4 percent at $108.80 per barrel

West Texas Intermediate: UP 1.2 percent at $106.60 per barrel

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