FINANCE

Wall Street stocks are volatile as investors prepare for a flood of technology returns


U.S. stocks were in a tight range on Monday as traders prepared for the Big Tech earnings report, against the backdrop of high inflation and signs of impending monetary policy tightening.

The blue-chip S&P 500 index fell 0.1 percent while the technology-focused Nasdaq composite changed slightly.

On Monday the social media giant will bring out new quarterly numbers from Facebook, including weekend figures from colleagues including Microsoft and Apple. According to Credit Suisse’s analysis, the earnings season is now well underway, with the next fortnightly reporting of 316 companies on Wall Street’s blue-chip index equivalent to 59 percent of the S&P 500’s market value.

The expected corporate updates came in response to warnings of a decline in the company’s advertising revenue after shares of social media platform Snap fell more than a quarter on Friday. Other tech bellweeders, including Facebook, have suffered knock-on losses, according to a Snap report.

Facebook also focused on early Monday after internal documents showed that the group’s senior executives had intervened to allow U.S. politicians and celebrities to post whatever they wanted on their social networks, ignoring rules designed to prevent misinformation and harmful content.

The U.S. market saw a muted performance at the start of the week as European equities also changed slightly on Monday. Europe’s region-wide Stoxx 600 index was flat in mid-afternoon trading, while London’s FTSE 100 index rose 0.3 percent.

In Asia, Hong Kong’s Hang Seng has been fairly flat off as healthcare and industrial stocks improve due to a drop in real estate shares, Beijing said over the weekend that it would extend justice for property taxes.

China’s property sector, long seen as the engine of the country’s economic growth, has plummeted in recent months due to real estate speculation and the liquidity crisis at developer Evergrande.

In the public debt market, yields on the 10-year US Treasury note and equivalent UK gilt were flat at 1.65 per cent and 1.16 per cent, respectively.

Central banks around the world are wondering how to respond to the pressure of massive inflation. Whoo Peel, chief economist at the Bank of England, told the Financial Times last week that the headline rate of UK inflation could exceed 5 per cent next year.

The European Central Bank is scheduled to meet on Thursday with a series of meetings in early November for the US Federal Reserve and the Bank of England.

“We believe that central banks need to bring clarity. . . Market prices will be set at their next meeting, “said Sammy Char, chief economist at Lombard Odier. A lift-off. “

“Are they going to do it soon, aggressive and so not so much at the top of the cycle,” Char asked, “or are they going to try to push back against this market price for a delayed lift-off and eventually start slow?”

U.S. economic growth data will be released this Thursday, and economists are forecasting an annual GDP expansion of 3.2 percent in the July-September quarter, compared to 6.7 percent in the second quarter.

Global oil prices have reached new heights as supply concerns continue, in the wake of a wide-ranging energy rally that has pushed up natural gas prices across Europe. Brent crude, the international benchmark, hit a new three-year high of $ 86 a barrel on Monday. West Texas Intermediate, the U.S. oil marker, topped 85 85 per barrel for the first time since 2014.

What else to see in the market today

Germany: Last week’s figures show that eurozone business activity is growing at its slowest pace in six months, as companies deal with supply chain problems and rising energy prices. When the IFO Institute releases its closely watched monthly business climate index, it will be another indication of how German businesses are coping with the difficult situation.

UK politics: Budget week has started in the UK. Chancellor Sage Sunak will present both the general budget and a government spending review on Wednesday, so keep an eye out for some last-minute requests for more funding from the Whitehall Department and lobby groups across the country.



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