Stocks dragged down by megacap tech, oil edges up
Wall Street stocks dip
Benchmark 10-year yields lower
Europe's STOXX down 0.3%
Gold climbs, dollar index weakens
Oil prices climb
Updates with U.S. markets, recasts headline, adds analyst comment
By Lawrence White and Chibuike Oguh
LONDON/NEW YORK, July 24 (Reuters) -Stocks sagged worldwide on Wednesday as earnings from Tesla and European luxury brands disappointed, while oil prices edged higher after trading near-six week lows as summer demand failed to surge.
The U.S. dollar edged lower, with traders watching out for an inflation reading on Friday and a Federal Reserve meeting next week, while the yen climbed to a seven-week high ahead of a central bank meeting next week.
"I think the big story is clearly the earnings front and you've kind of seen reports all over the map, with Tesla probably the disappointing one," said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 1.1%, while Japan's Nikkei .N225 fell 1%.
On Wall Street, all three main indexes were trading lower, led by losses in consumer discretionary, communication services and technology stocks.
Tesla's TSLA.O shares slumped nearly 12% after it reported its lowest profit margin in five years amid waning demand for electric vehicles. Other so-called "Magnificent Seven" stocks including, Nvidia NVDA.O, Alphabet GOOGL.O, Amazon AMZN.O and Microsoft MSFT.O, were all down between 1.9% and 4.5%.
The Dow Jones Industrial Average .DJI fell 0.76% to 40,051.06, the S&P 500 .SPX lost 1.53% to 5,470.78 and the Nasdaq Composite .IXIC lost 2.37% to 17,570.73.
The pan-European STOXX 600 index .STOXX was down 0.54% to 512.84 points. The world's biggest luxury group LVMH LVMH.PA had reported slower sales growth as Chinese shoppers rein in their spending.
"It's the curse of high expectations, that's what the market was coming into earnings season with, especially for the tech companies that have been the darlings of the market", said James St. Aubin, chief investment officer at Sierra Mutual Funds in Santa Monica, California.
RATE CUT EXPECTATIONS
Subdued stock trading globally was symptomatic of markets looking for direction, with traders digesting a range of themes including the U.S. election, expectations of rate cuts and weak corporate earnings reports.
Oil prices snapped three straight losing sessions on Wednesday thanks to falling U.S. crude inventories and growing supply risks from wildfires in Canada, but still sat near month-and-a-half lows amid lacklustre demand.
Brent LCOc1 crude futures for September rose 0.41% to $81.33 a barrel. U.S. West Texas Intermediate crude for September CLc1 increased 0.56% to $77.89 per barrel.
U.S. GDP data on Thursday and personal consumption expenditure data - the Fed's favoured measure of inflation - on Friday could help investors calibrate their expectations of when interest rates might be cut.
Markets are pricing in 62 basis points of easing this year, with a cut in September priced in at 95%, the CME FedWatch tool showed. The benchmark U.S. 10-year Treasury US10YT=RR yield was lower for a second straight session. The yield fell 1.4 basis points to 4.225%.
"The rotation is in full force. Magnificent 7 earnings growth are decelerating, while un-magnificent 493 growth are accelerating," said Thomas Hayes, chairman at Great Hill Capital in New York, in a statement. "Fed cut will add fuel to this new trend for cyclicals, small caps and dividend stocks picking up the mantle," he said.
Gold prices rose as the dollar slipped. Spot gold XAU= added 0.7% to $2,426.00 an ounce. U.S. gold futures GCc1 gained 0.68% to $2,421.00 an ounce
The Japanese yen JPY= was 1.46% firmer against the greenback at 153.35 per dollar. In cryptocurrencies, bitcoin BTC= gained 1.54% to $66,854.94. Ethereum ETH= declined 1.23% to $3,440.30.
($1 = 155.3600 yen)
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Lawrence White in London and Chibuike Oguh in New York; Editing by Mark Potter
To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets
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آخر الأخبار
إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.