London (AFP) – Stock markets saw mostly muted gains in Europe and on Wall Street on Wednesday as investors waited for earnings from US tech giants, while the dollar rose from recent lows ahead of an interest-rate call from the Federal Reserve. While most analysts expect the Fed to keep its benchmark rate unchanged, a stronger-than-expected showing for US growth in the second quarter bolstered expectations that a future cut could be in the cards — potentially helping the greenback.
The US economy expanded 3.0 percent in the quarter, above the consensus analyst forecast of 2.5 percent, though experts cautioned over the distorting effects of President Donald Trump’s tariffs blitz. “The Fed isn’t expected to change rates but the market will analyse the accompanying commentary for signals on what could happen next,” said Russ Mould, investment director at AJ Bell. Investors will also be watching the latest US jobs data due Friday for further clues if the Fed will cut rates — as President Donald Trump has aggressively sought from its chief, Jerome Powell.
“The data remains consistent with a cooling growth story, but there appears to be little pressing need for an interest rate cut despite the president’s demands,” said James Knightley, an economist at ING. Before then, Meta and Microsoft are due to post earnings after the Wall Street close, with results from Amazon and Apple coming Thursday. “We’ve got four of the Magnificent Seven mega-cap US tech stocks reporting over the next two days…any signs of weakness could damage investor sentiment,” Mould said. Investors will also focus on the firms’ forecasts in light of Trump’s tariffs and their colossal investments in artificial intelligence.
In Europe, the Paris and Frankfurt indexes gained after the eurozone economy unexpectedly expanded in the second quarter, which preceded a weekend tariffs deal between the US and the EU that had also bolstered sentiment. After a deal was also reached with Japan over the past week, focus is now on negotiations between Washington and Beijing to extend an agreement to lower eye-watering levies that threatened the world’s largest economies. The two-day meeting in Stockholm ended Tuesday without a resolution but with the US team voicing optimism they could announce a second 90-day truce.
Among the countries still to reach a trade deal with Washington are Brazil, which faces 50 percent tariffs, South Korea, and India. Trump said Tuesday that New Delhi could face a rate of 20 to 25 percent, adding: “India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.”
**Key figures at around 1600 GMT:**
– New York – S&P 500: UP 0.1 percent at 6,380.06 points
– New York – Dow Jones: FLAT at 44,630.11
– New York – Nasdaq: UP 0.4 percent at 21,117.43
– London – FTSE 100: FLAT at 9,136.94 (close)
– Paris – CAC 40: UP 0.1 percent at 7,861.96 (close)
– Frankfurt – DAX: UP 0.2 percent at 24,262.22 (close)
– Tokyo – Nikkei 225: DOWN 0.1 percent at 40,654.70 (close)
– Hong Kong – Hang Seng Index: DOWN 1.4 percent at 25,176.93 (close)
– Shanghai – Composite: UP 0.2 percent at 3,615.72 (close)
Euro/dollar: DOWN at $1.1473 from $1.1554 on Tuesday
Pound/dollar: DOWN at $1.3272 from $1.3357
Dollar/yen: UP at 149.09 yen from 148.50 yen
Euro/pound: DOWN at 86.43 pence from 86.47 pence
West Texas Intermediate: UP 1.4 percent at $7.18 per barrel
Brent North Sea Crude: UP 1.1 percent at $72.47 per barrel
© 2024 AFP
