Global markets end with complex notes as tech stocks pull down Wall Street

The global stock market ended this week with a mixed note on Friday, and Wall Street was pulled down by disappointing results from tech companies and weak economic data, increasing the risk of a recession.

The Dow Jones Industrial Average fell 0.4%, the S & P 500 fell 0.9%, and US stocks finished their third straight day of rise. The Nasdaq Composite fell 1.9%.

Snap, the owner of the Snapchat messaging app, saw quarterly losses nearly triple to $ 422 million, despite a 13% increase in revenue under more “difficult” situations than expected. .. Its share plummeted by nearly 40%.

The results also impacted Facebook’s parent Meta Platforms down 7.6% and Google’s parent Alphabet down 5.8% amid concerns about Internet advertising.

“The results weren’t good, but they were good enough,” said Angelo Kurkafas, an investment strategist at Edward Jones.

“Besides sufficient earnings, it was the decline in inflation expectations that helped the market recover.”

According to Refinitiv data, 106 of the S & P 500 companies reported revenue until Friday morning, with 75.5% above analysts’ expectations and a beat rate below 81% in the last four quarters.

European stocks have returned to a positive territory. At the close of trading on Friday, London’s FTSE 100 and Frankfurt’s DAX rose 0.1% and Paris’ CAC 40 rose 0.3%.

The euro was under pressure after major studies suggested that a single currency area could be at risk of recession due to sluggish demand and rising costs.

Italy’s political turmoil has also clouded the outlook, and the European Central Bank’s higher-than-expected interest rate hikes have failed to sustainably boost the euro.

Eurozone economic activity plummeted in July, and the carefully monitored Purchasing Managers Index (PMI) showed a significant drop in post-lockdown spending for manufacturing and consumers.

“The euro area is on the verge of recession,” said Andrew Kenningham, an economist at Capital Economics. “The ECB needs to follow up on yesterday’s historic rate hikes, which will exacerbate the recession, but will rise a few more times in the coming months.”

Nevertheless, Paris, Frankfurt and London all rose.

In early Asia, the Nikkei 225 in Tokyo rose 0.4% and the Hang Seng Index in Hong Kong rose 0.2%. Shanghai Composite fell 0.1%.

The dollar has been on track for the largest weekly percentage decline in almost two months after hitting its 20-year high last week.

The Japanese yen rose about 1% against the 136.05 greenback per dollar, while Sterling rose 0.08% on the day and was last traded at $ 1 in 2002.

This week’s backlash in New York has fueled hope that the market may be ready to recover after the bruise in the first half of 2022.

However, Chris Beauchamp, chief market analyst at online trading platform IG, said this week’s stock rebound lasted longer than before, but it was time to borrow.

Investors will be wary of pushing too much luck next week, given that the avalanche of earnings is on their way. [US Federal Reserve interest rate] First reading on decisions and US second quarter GDP. “

Crude prices fell on Friday, with Brent, the world’s two-thirds oil benchmark, down 0.6% to $ 103.20 a barrel and West Texas Intermediate, the US oil tracking gauge, down 1.7%. It was $ 94.70. barrel.

Updated: July 23, 2022 8:05 am