European stocks fall; Focus on Fed and US Tech Revenue From Reuters

© Reuters. FILE PHOTO: A man stands on an overpass with an electronic board showing the Shanghai and Shenzhen stock indices in Shanghai


LONDON (Reuters) – Europe’s stock indices opened lower on Wednesday as investors focused on the Fed’s meeting and earnings from US tech giants.

The MSCI World Equity Index, which tracks stocks in 49 countries, fell 0.1% around 0842 GMT after falling from a new all-time high on January 21 last week.

In Wednesday’s Asian session, stocks were hurt by profit-taking as investors feared stretched valuations.

European stock indices are in the red. The value fell around 0.3% on the day at 0854 GMT.

London was down 0.2% while it was down 0.5%.

The dollar was up against a basket of currencies as European markets opened to hit 90.275 around 0846 GMT, up 0.1% on the day.

The Fed is not expected to make policy changes, but investors will watch out for changes in tone of voice regarding the economic outlook and mention of a slowdown or “rejuvenation” in Fed asset purchases.

“The big question will be about any asset purchases reduction schedule, but Powell is likely to take a cautious tone on this, reiterating that given the challenging near-term outlook and the remaining uncertainties, it is premature to consider . ” Deutsche Bank (DE 🙂 Strategist Jim Reid wrote a note to customers.

The held value was close to the three-week low it hit in the previous session and was largely unchanged on the day at 1.0398% around 0846 GMT.

READ  Guinea declares new Ebola epidemic, the first recurrence of the disease since 2016

The quarterly earnings of US tech giants like Facebook (NASDAQ 🙂 and Apple (NASDAQ :), due later in the session, were also in focus.

“With some financial assets currently trading in what many have called bubble territory, more attention will be paid to these releases to determine whether these current valuations are warranted,” said Jim Reid of Deutsche Bank.

Although the Nasdaq futures were down 0.1%, they rose 0.4% by 0847 GMT, aided by strong gains from Microsoft (NASDAQ 🙂 in the last session. According to Microsoft, Azure cloud computing services have grown by 50%.

Increased retail investor participation in the stock market has come into focus this week as amateur traders on Reddit’s stock trading discussion group r / WallStreetBets piled up in GameStop (NYSE :), spurring it, while professional shortsellers scrambled to lose Cover bets.

To some stock market professionals, the recent moves seem to symbolize a stock market that may be overvalued at the end of the year and is dominated by torrents of fiscal and monetary stimulus to ease the coronavirus crisis.

The International Monetary Fund raised its forecast for global economic growth in 2021, saying the coronavirus-triggered downturn last year would be almost one percentage point less severe than expected.

Global COVID-19 cases exceeded 100 million on Wednesday, and countries around the world are grappling with new varieties of the virus and delays in introducing vaccines.

The United States wants to have enough doses of vaccine to vaccinate most Americans by the summer, President Joe Biden said Tuesday.

READ  Anderson Cooper and "Jeopardy!" Rivals share memories of Alex Trebek's formidable presence

Delivery of the COVID-19 vaccine has been delayed in Europe. Hospital stays in France hit an eight-week high.

The euro fell 0.1% to $ 1.21455 at 0848 GMT while euro zone government bond yields rose slightly.

Gold fell around 0.2%. was down by around 3.3%.

Oil prices rose after industry data showed inventory levels dropped unexpectedly last week and China posted its lowest daily surge in COVID-19 cases in more than two weeks.

For a graph on the Fed’s balance sheet:

Written By
More from Arzu Moss

Mars Rover Landing: Perseverance will begin an “epic journey” on Mars next month

The rover, the largest and most advanced rover NASA has ever built,...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *