Stocks Retreat on Earnings; Dollar Steadies: Markets Wrap

Date | 26-04-2019 - 02:12 PM Article Type | Stock Markets Region | World

Most Asian stocks fell Friday as earnings season continued. The dollar steadied around a four-month high before the U.S. release on first-quarter economic growth.


Shares slipped across the region, though losses were pared as the session progressed. European and U.S. futures were little changed. An unexpected tumble in Japanese industrial production, following yesterday’s contraction in South Korea’s GDP, underscored that economies outside the U.S. and China aren’t doing as well. Corporate earnings also failed to give a lift. China’s yuan edged up after President Xi Jinping said his country won’t engage in currency depreciation that harms other nations. Treasuries were flat.


Earlier in the U.S., the tech-heavy Nasdaq 100 reached a record following strong results from Microsoft Corp. and Facebook Inc. The broader S&P 500 Index ended little changed after 3M cut its earnings forecast and UPS reported a profit drop.

As earnings roll in, investors are looking for a reason to breathe new life into the global risk rally. Mostly positive results so far this earnings season have gone some way toward mitigating anxiety over the global economy, though renewed concerns in a number of emerging markets from Turkey to Argentina is damping risk appetite. U.S. first-quarter gross domestic product data due Friday will be closely watched.

“We’re in an obviously relatively slower growth economic environment and earnings expectations have drifted lower,” said Ryan Primmer, head of investment solutions at UBS Asset Management. “I would call it a good-enough earnings season for the market to be rewarded for where it’s at today.”

Elsewhere, emerging market currencies steadied after declines in Argentina’s peso and Turkey’s lira. Crude oil fell for a third day.

Here are some notable events coming up:

The initial print on first-quarter U.S. GDP Friday will be closely watched for clues as to how the economy responded to the government shutdown and fallout from the fourth-quarter market rout.
These are the main market moves:

The MSCI Asia Pacific Index fell 0.2 percent as of 3:13 p.m. Tokyo time.
Topix Index fell 0.2 percent at the close.
Kospi Index declined 0.6 percent.
S&P/ASX 200 dropped was little changed.
Shanghai Composite Index fell 0.8 percent.
Hang Seng Index was little changed.
S&P 500 futures fell 0.1 percent after the S&P 500 Index was little changed.
The Bloomberg Dollar Spot Index rose 0.1 percent.
The euro was little changed at $1.1137.
The Japanese yen was flat at 111.69 per dollar.
The offshore yuan rose 0.2 percent to 6.7398.
Britain’s pound was little changed at $1.2905.
The yield on 10-year Treasuries was little changed at 2.53 percent.
West Texas Intermediate crude fell 0.5 percent to $64.87 a barrel.
Gold rose 0.3 percent to $1,280.75 an ounce.

Author: PPS
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