Stocks droop as Big Tech gloom offsets upbeat economy
US futures fall as Meta, Microsoft slide after earnings
BOJ holds rates as expected, yen a fraction firmer
All eyes on Apple and Amazon earnings updates
Updates prices at 1142 GMT
By Amanda Cooper
LONDON, Oct 31 (Reuters) -Global shares fell on Thursday, after Facebook owner Meta Platforms META.O and Microsoft MSFT.O both warned of rising costs for artificial intelligence, while evidence of strong U.S. economic growth continued to underpin the dollar.
Big Tech's warnings stoked worries among investors that the pay-off for heavy spending on AI may take longer than many had hoped. And with Amazon AMZN.O and Apple AAPL.O due to report later in the day, the mood was cautious.
In currencies, the dollar fell back from three-month highs against the yen after the Bank of Japan kept interest rates on hold as expected, but carried a hawkish tone, prompting some analysts to raise the possibility of a December rate hike.
Investors were also treading warily ahead of U.S. non-farm payrolls data on Friday, the presidential election next Tuesday and a Federal Reserve policy decision on Thursday.
Data on Wednesday showed the U.S economy grew by an annualised 2.8% in the third quarter, topping the 2% mark for the eighth quarter out of the last nine, according Pepperstone strategist Michael Brown.
S&P 500 futures ESc1 eased 0.7%, while Nasdaq futures NQc1 fell nearly 1.0%, suggesting more losses on Wall Street at the open. Shares in Microsoft and Meta, which have risen 15% and 67%, respectively, so far this year, fell in premarket trading by 3-4%.
"We’ve seen it time and time again. We have these set-backs that have proved to be buying opportunities. The question now is are we at such a level in the market where investors aren’t going to be rushing to buy up the stock and much more likely to stand aside," Trade Nation market strategist David Morrison said.
"There are so many excuses for not increasing your exposure to the market right now and the tech earnings have put the cherry on the top," he said.
AI posterchild Nvidia NVDA.O is the last of the so-called "Magnificent 7" megacap tech companies to report earnings, in about three weeks from now. Tesla TSLA.O reported last week, with Alphabet GOOGL.O following on Tuesday.
FRAGILE NERVES
In Europe, the STOXX 600 .STOXX fell 0.85% to its lowest in seven weeks in a heavy day for earnings, as a drop in shares of French lender BNP Paribas BNPP.PA after results and in tech stocks like ASML ASML.AS and SAP SAPG.DE offset a bounce in energy and the wider banking sector.
In terms of macro risk events, the U.S. personal consumption expenditures index, the Fed's preferred measure of inflation, is due later on Thursday.
Meanwhile, in the final stretch of the U.S. presidential election contest, opinion polls still put Republican Donald Trump and Democrat Kamala Harris neck-and-neck, although financial markets and some betting platforms have been leaning towards a Trump victory.
The dollar index =USD traded around 104, just below Tuesday's near three-month highs. The U.S. currency fell by the most against the yen, down 0.4% to 152.825 JPY=EBS, although that was still not far from this week's high of 153.885.
The dollar is set for a rise of nearly 6.5% against the yen in October with political uncertainty in Japan after the coalition government lost its majority in parliamentary elections at the weekend potentially hampering the BOJ's efforts to normalise monetary policy.
"It supports our forecast for the BoJ to raise rates sooner than current market expectations, although we have pushed back the timing of our forecast for the next rate hike from December to January in light of recent political instability in Japan," MUFG currency strategist Lee Hardman said.
"One final rate hike this year can’t be completely ruled out if the yen weakens sharply after the U.S. election," he said.
Japan's Nikkei share average .N225 closed down 0.5%. South Korea's Kospi .KS11 dropped 1.5%, shrugging off a late recovery in Samsung 005930.KS shares after the consumer electronics company said it was making headway in AI chip supply.
Gold XAU= reached a fresh all-time high of $2,790.15 per ounce, while oil prices were up 0.5% at $72.90 a barrel LCOc1 after weekly data showed an unexpected drop in fuel inventories that offered some reassurance about energy demand.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Additional reporting by Kevin Buckland in Tokyo and Wayne Cole in Sydney; Editing by Toby Chopra, Kirsten Donovan
الأصول ذات الصلة
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.
