By Vivek Kumar
Moving markets today: Asian markets mirror Wall Street’s rise; oil and gold stable as Middle East tensions ease; Tesla stocks surge 13 per cent; focus on Meta, Boeing, IBM, and Intel earnings
Stock markets in the United States saw a positive close, driven by strong earnings reports from major companies. Investor attention was particularly drawn to the quarterly performances of leading firms dubbed the “Magnificent Seven” along with other prominent growth stocks. Asian markets followed suit on Wednesday morning, with South Korea notably leading gains in the region. Tesla’s stock experienced a remarkable surge of 13 per cent following the announcement of plans to hasten the release of more affordable vehicle models. Meanwhile, both oil and gold prices remained relatively stable. In Australia, hopes for a rate cut were dampened as first-quarter inflation slowed less than expected. Looking ahead, all eyes are on the US market as tech heavyweights prepare to unveil their latest quarterly results. Notable companies set to report earnings include Meta Platforms, Boeing, IBM, and Intel. Here are five key takeaways for your day.
Chinese business coalition criticizes EU anti-subsidy raid
The China Chamber of Commerce to the EU has condemned what they described as a surprise inspection carried out by European Commission authorities on a Chinese security equipment supplier in the Netherlands and Poland, the FT reported.
The chamber, without disclosing the company’s identity, stated that agents authorized by the European Commission conducted searches at the company’s offices in both countries on Tuesday morning. In response, the EC stated that it has reason to believe that the company under inspection might have received foreign subsidies that could disrupt the internal market.
This move comes as the EU is investigating several cases of alleged subsidies to Chinese exports, fueled by concerns about overproduction in China and the potential for dumping.
Tesla stock soars 13 per cent on plan to expedite release of ‘more affordable’ models
Tesla has pledged to speed up the release of “more affordable” models of its electric cars, aiming to regain investor confidence after reporting a 9 per cent drop in revenue in the first quarter, largely due to decreased sales, the FT reported.
Tesla’s stock surged by over 13 per cent in after-hours trading, rebounding from its lowest point in 15 months.
In a filing made on Tuesday, the company revealed plans to revise its future vehicle lineup, accelerating the introduction of new models ahead of the previously scheduled start of production in the latter half of 2025. Tesla intends to include these “more affordable” vehicles in its lineup, which can be manufactured using existing production lines.
Australia’s rate cut hopes fade as Q1 inflation slows less than expected
In Australia, first-quarter consumer price inflation slowed less than expected due to persistent high service costs, disappointing policymakers hoping for early interest rate cuts. The consumer price index (CPI) rose 1 per cent, above forecasts of 0.8 per cent, while annual CPI inflation eased to 3.6 per cent from 4.1 per cent, still above the expected 3.5 per cent.
March’s CPI was up 3.5 per cent from the previous year. The trimmed mean, a key inflation measure, rose 1 per cent in the quarter, above forecasts, but its annual pace slowed to 4 per cent from 4.2 per cent.
What’s coming up
Big-name companies like Meta Platforms, Boeing, IBM, and Intel are gearing up to reveal their latest earnings reports today. Investors will also keep a keen eye on Lloyds as the bank unveils its first-quarter financials.
Beyond corporate earnings, traders are closely monitoring upcoming data on US gross domestic product and March’s personal consumption expenditure, a key inflation metric favoured by the Fed. These figures will provide insight into the future direction of US interest rates.
Meanwhile, the IFO Institute is poised to release its April survey on business confidence, contributing further to the economic landscape.
Asian equities mirror US upward trend
The US stock market had a strong day, with the S&P 500 climbing by 1.17 per cent to close at 5,069.41 points. The Nasdaq Composite also saw gains, rising by 1.59 per cent to hit 15,696.64, while the Dow Jones Industrial Average rose by 0.70 per cent to reach 38,494.32.
Over in Asia, South Korea’s Kospi index rose by 1.9 per cent early on, driven by a significant 12.2 per cent increase in Hanwha Engine shares. Australia’s S&P/ASX 200 index saw a modest increase of 0.23 per cent. Japan’s Nikkei N225 surged by over 2 per cent, and China’s CSI300 index rose by 0.17 per cent, while Hong Kong’s Hang Seng Index saw a 1.7 per cent increase.
In currency markets, the dollar index experienced a slight dip of 0.04 per cent, settling at 105.63. The Japanese yen remained near its recent low at 154.79 per dollar. The Australian dollar strengthened against the US dollar, climbing by 0.5 per cent to A$0.65 after Australia reported slightly higher-than-expected inflation for the first quarter.
Oil prices remained stable, with US crude holding at $83.33 per barrel and Brent at $88.38, showing a minor decrease of 0.05 per cent on the day. This comes as investor attention shifted away from Middle East tensions, leading to a rise in oil prices on Tuesday.
Spot gold traded flat at $2,321.42 per ounce. In the cryptocurrency space, bitcoin saw a 0.41 per cent increase, reaching $66,630.
