Shares in Asia rose, led by Hong Kong, after Wall Street rebounded from a $2 trillion selloff on optimism that big tech leaders will announce strong profits this week. Technology firms drove Hong Kong gauges higher after UBS Group AG upgraded shares in China to overweight, citing resilient earnings despite the nation’s property and macro worries. Japanese shares held their advance even as the yen briefly strengthened against the dollar after Finance Minister Shunichi Suzuki’s warnings against excessive currency moves. Investors are waiting to see if earnings will meet the lofty expectations for artificial intelligence this week when about 180 companies — representing over 40% of the S&P 500 market value — are due to report their results. The focus on earnings comes after a rout fueled by geopolitical fears and signals the Federal Reserve will be in no rush to lower rates. Futures for US shares were little changed after the S&P 500 topped 5,000 — halting a six-day rout — while the Nasdaq 100 rose 1%, with Nvidia Corp. leading gains in big tech. Apple Inc. was named a top pick for 2024 at Bank of America Corp. on optimism over its upcoming results. Treasuries were steady in Asia before a flurry of bond auctions that will test investors’ appetite after yields hit the highest in 2024. Australian and New Zealand bonds advanced. The dollar was steady versus major peers, with the pause in its recent surge providing relief to region’s markets. A broader gauge of emerging market currencies gained in four out of five sessions after hitting a 2024 low last week. Elsewhere, the Bank of Japan is widely expected to leave its benchmark interest rate unchanged Friday, with investors focusing on any hints of a less dovish tilt as the yen trades around a 34-year low. In Asia, focus returns to China’s role as a major lender to developing nations amid a report the head of its central bank wants creditors engaged in debt restructurings to agree on how to fairly share the burden of relief. In corporate news, Chinese bubble-tea maker Sichuan Baicha Baidao Industrial Co. plunged more than 31% in its trading debut in Hong Kong, underscoring the challenges the financial hub is facing in reviving investor confidence. Tianjin Construction shares slumped 30% in Hong Kong debut.
Gold extended losses after its biggest daily decline in almost two years, with easing tension in the Middle East and signs the Federal Reserve will keep rates higher for longer crimping demand. Oil nudged higher as traders weighed the next steps between Israel and Iran amid signs of easing hostilities following a tit-for-tat exchange of attacks last week. Nearly two-thirds of 409 respondents in Bloomberg’s Markets Live Pulse survey said they expect earnings to give the US equity benchmark a boost. That’s the highest vote of confidence for profits since the poll began asking the question in October 2022.
The challenge to S&P 500 returns this earnings season is that companies will have to produce earnings — and outlooks — that support the already elevated multiples, according to Megan Horneman at Verdence Capital Advisors. Indeed, stakes are high for the “Magnificent Seven” megacaps, whose profits are forecast to rise nearly 40% from a year ago, according to Bloomberg Intelligence. Microsoft Corp., Alphabet Inc., Meta Platforms Inc. and Tesla Inc. report results this week — kicking off earnings for the so-called Magnificent Seven. With AI seen as the key to future profits, its contributions to the earnings mix is a focus for traders, a BofA team including Ohsung Kwon and Savita Subramanian said. US After Hours SAP +2.7% up on earnings; CALX -15%, SSD -8.7%, CDNS -7.4%, NUE -6.5% among top post-earnings laggards.
Nikkei +0.24% Hang Seng +1.90% CSI -0.50% Shanghai -0.37% Shenzen +0.13%
Eur$ 1.0656 CNH 7.2563 CNY 7.2451 JPY 154.77 GBP 1.2347 CHF 0.9126 RUB 93.7000 TRY 32.63 WTI$ 82.40 +0.61% Gold 2,309 -0.75% BTC 66,552 +0.01% ETH 3,185 -0.20%
S&P -0.03% Nasdaq -0.10% EuroStoxx +0.42% FTSE +0.55% Dax +0.53% SMI +0.69%
Macro :
- JPMorgan’s Kolanovic Says Slide in US Stocks Has Further to Go
- Quant Hedge Fund Aspect Mints 21% Return Playing Currencies
- Quant Hedge Fund Aspect Mints 21% Return Playing Currencies
- Hedge Funds Snap Up Japan Rates Traders in Bet on Comeback
- Goldman to Add Dealmakers in Paris as Financial M&A Heats Up
- Strategists Are Divided Over US Profit Outlook: Earnings Watch
Keep an eye on :
Keep an eye on :
- ABF LN : AB Foods 1H Adjusted Operating Profit Beats Estimates
- A4Y GY : Accentro Real Estate Delays Annual Results Amid Devaluation
- AKZA NA : Akzo Nobel Maintains FY Adjusted Ebitda Forecast
- ALLFG NA : Allfunds 1Q Revenue EU153M
- ALNT SM : Alantra Cuts Germany Staff Amid Investment Banking Slump
- AAD GY : Amadeus Fire 1Q Operating Ebita EU14.4M
- AAPL US : FIFA Said to Be Close to TV Deal With Apple for New Tournament
- IF IM : Banca IFIS's MSCI ESG Rating Raised to AA from A
- BARB BB : Barco 1Q Revenue Misses Estimates
- BA US : Boeing Expects Slower 787 Production Due to Parts Shortage: Rtrs
- BOL SS : Boliden 1Q Adjusted Operating Profit Misses Estimates
- COV FP : Covivio to Sell 49% Stake in a Portfolio to Caisse des Depots
- DNB NO : DNB Bank 1Q Net Interest Income Misses Estimates
- ENG SM : Enagas 1Q Net Income Beats Estimates
- ENTRA NO : Entra 1Q Net Operating Income Misses Estimates
- EQV1V FH : eQ 1Q Operating Profit Misses Estimates
- HABA GY : Hamborner REIT Maintains FY FFO Forecast
- HYQ GY : Hypoport Prelim 1Q Ebit EU4.3M
- IDIA SW : Idorsia Seeks to Tweak Bond Terms to Avoid Liquidity Constraints
- IDR SM : *INDRA HIRES BANKS TO SELL MINSAIT MAYORITY STAKE: CONFIDENCIAL
- INWI SS : Inwido 1Q Net Sales Misses Estimates
- IVS IM : Lavazza, IVS Holder Launch Offer for IVS at €7.15/Share
- KNIN SW : Kuehne + Nagel 1Q Ebit Meets Estimates
- LAVA IM : Lavazza, IVS Holder Launch Offer for IVS at €7.15/Share
- LR FP : Legrand to Buy Dutch Health-Tech Firm for Over €500 Million
- NTRY SM : Naturgy Chairman Exits Long Term Incentive Plan (April 22)
- NORION SS : Norion Bank AB 1Q Operating Profit Beats Estimates
- NOVN SW : Novartis 1Q Core EPS Beats Estimates
- NOVN SW : Novartis to Propose Ex-Bristol Myers CEO as Chairman at 2025 AGM
- OVH FP : OVH 1H Adjusted Ebitda Beats Estimates
- POM FP : Plastic Omnium 1Q Revenue Meets Estimates
- RAL FP : Rallye Says Court Decided Opening of Liquidation Proceedings
- RAL FP : Rallye Says Court Decided Opening of Liquidation Proceedings
- RAND NA : Randstad 1Q Organic Revenue Beats Estimates
- RNO FP : Renault Beats Revenue Estimates on Clio, Megane E-Tech Sales
- SPM IM : Saipem 1Q Revenue Beats Estimates
- SAN FP : Sanofi Says Rilzabrutinib Phase 3 Study Met Primary Endpoint
- SAP GY : SAP Rises With Cloud Backlog a Highlight of Report: Street Wrap (*SAP ADRS FALL 3.5% IN US POSTMARKET AFTER RESULTS)
- TLGO SM : Ganz-Mavag’s Talgo Bid Request Admitted for Processing: CNMV
- TIT IM : Vivendi Abstains From Telecom Italia Shareholder Vote on Board
- UCG IM : Kruk to Buy Non-Performing Retail Loans From UniCredit
- VAR NO : Var Energi 1Q Ebit Matches Estimates
- VPLAYB SS : Viaplay 1Q Ebit Loss SEK473M Vs. Loss SEK325M Y/y
- WIHL SS : Wihlborgs 1Q Income From Property Management Beats Estimates