Asian share benchmarks showed a mixed performance on Tuesday, with U.S. stocks making a recovery after a previous week’s losses. The Nikkei 225 in Japan rose 0.3%, despite the country’s manufacturing activity contracting for the 11th consecutive month. The Hang Seng in Hong Kong also saw gains, while the Shanghai Composite index slipped.
In the U.S., the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posted gains, with technology stocks leading the way. Nvidia and Alphabet saw significant increases as Treasury yields stabilized. Bank stocks also performed well following positive profit reports, offsetting a drop for Tesla, which announced further price cuts.
The week ahead is filled with earnings reports, with roughly 30% of S&P 500 companies scheduled to disclose their first-quarter results. Verizon Communications kicked off the reports, revealing a drop in profit that was not as severe as expected. However, the company reported weaker revenue for the first quarter than anticipated, leading to a decline in its stock price.
The Federal Reserve’s indication that interest rates may need to remain high to combat inflation has added pressure on companies to deliver strong profits and revenue. This news has dampened hopes of potential interest rate cuts, as inflation remains higher than expected.
In oil trading, both U.S. benchmark crude and Brent crude saw slight gains. The U.S. dollar weakened slightly against the Japanese yen and the euro.
Overall, the global markets are navigating through a mix of positive earnings reports, inflation concerns, and fluctuating oil prices, creating a dynamic and uncertain trading environment for investors.