Ipek Ozkardeskaya
Swissquote Bank Ltd
The first view on Big Tech earnings wasn’t inspiring. Tesla’s earnings missed estimates for the 4th consecutive quarter as revenue from car sales declined 7%. Shares slashed almost 8% in the afterhours trading. Over at Google, the parent Alphabet reported the smallest earnings beat since early 2023 and the share price fell 2% in the afterhours trading.
As such, two of the Magnificent 7 stocks failed to create euphoria when they reported their Q2 results yesterday. The S&P500 and Nasdaq both closed yesterday’s session with small losses, and the futures are both in the negative this morning.
In Europe, the news weren’t much better. LVMH saw its ADRs decline almost 5% after announcing that revenue in China-region fell 14% in Q2 – in line with a broad-based weakness in other luxury houses across Europe as well.
Copper futures are down by 20% since the May peak, while US crude cleared the 200-DMA without much problem despite a 3.9-mio-barrel fall in US oil inventories last week.
In the FX, the US dollar index was slightly stronger yesterday despite weak data, the euro and sterling retreat while the yen strengthens on bets of Bank of Japan (BoJ) hike next week.
Later today, the Bank of Canada (BoC) is expected to cut rates by 25bp.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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