- European stocks extended yesterday losses
- Chinese regulatory crackdown continued to drag down investors' mood
- Earnings from Apple, Alphabet and Microsoft after market close
European indices finished another session lower, led by tech-sector, as another selloff in Asian shares negatively affected stock markets across the globe. Also a batch of mixed corporate earnings and lingering concerns about the pandemic and inflation weighed on market sentiment. On the corporate side, Reckitt Benckiser led the decline by plunging more than 8%, marking its worst day since February 2003, after missing sales growth estimates and warning on margins as costs rose. Meanwhile, miner Rio Tinto will lower production at its aluminum smelter in Canada due to union strikes. DAX 30 fell 0.64%, CAC 40 lost 0.71% and FTSE100 finished 0.42% lower
US indices are trading under pressure during today's session due to very weak sentiment towards Chinese tech companies which are listed on Wall Street, following recent actions by Chinese authorities to subjugate this sector in the country. The Nasdaq 100 is clearly falling today since the beginning of the session and broke below 15,000 pts. Currently, Activision Blizzard is losing the most (approx. 8%), followed by components from China. Tesla is underperforming despite good quarterly results (-3.6%). Apple is down 2.2%, Alphabet fell 2.0% and Microsoft lost 1.7%. All three companies are due to report after the closing bell. On the data front, US Conference Board Consumer Confidence index increased to 129.1 in July from the previous month's 127.3 and well above market expectations of 123.9. US manufactured durable goods rose 0.8% mom in June, slowing from an upwardly revised 3.2% surge in May and well below analysts' estimates of 2.1%.
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Create account Try a demo Download mobile app Download mobile appWeak sentiment in the stock market has a limited impact on the commodities. Crude oil has fallen slightly and gold is trying to get back above $ 1,800 an ounce. Coffee trades around 200 cents a pound as it waits for a second wave of frosts to hit Brazil. The weather also affects gas prices in Europe and the US. In Great Britain, gas prices are at their highest in 15 years. In the US, the price exceeded $ 4 MMBTU.
Hungary raised interest rates as expected, though slightly more than consensus estimates. Currently, the main rate is 1.2% against the previous 0.9%. The HUF appreciated against the euro today, while the dollar showed weakness, as a result of which the EURUSD pair returned above the 1.1800 level.
GBPUSD pair broke above the major resistance zone marked with 200 SMA (red line), downward trendline and upper limit of the 1:1 structure. Currently the pair is approaching local resistance at 1.3920 which is marked with 50 SMA (green line). Should a break higher occur, then upward move may accelerate towards 1.3920. On the other hand, if sellers manage to regain control then nearest support lies at 1.3750. Source: xStation5
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