Good reports from tech companies could keep major indices from falling

Despite concerns about a slowdown in the global economy, US indices increased on Monday as investors are optimistic ahead of a crucial week of the quarterly results of major tech companies. Large tech companies caused a broader market reversal, driven by Alphabet and Microsoft's gains ahead of today's quarterly earnings. At the stock market's close, the Dow Jones Index (US30) added 0.71%, and the S&P 500 Index (US500) increased by 0.58%. The NASDAQ Technology Index (US100) jumped by 1.29% yesterday. But despite the rebound, some Wall Street analysts say there are more declines ahead as the selling conditions are not yet at an extreme level.

Elon Musk buys Twitter. The company confirmed that it had reached an agreement for Musk to buy a share for $54.20 in cash under a deal worth about $44 billion.

Major European indices traded lower yesterday. Germany's DAX (DE30) fell by 1.54%, France's CAC 40 (FR 40) lost 2.01%, Spain's IBEX 35 (ES35) decreased by 0.90%, and Britain's FTSE 100 (UK100) lost 1.88%. Natural gas shortages caused the first phase of the global energy crisis in Europe; now, according to analysts, the coal crisis is coming. In Germany and Italy, coal-fired power plants that were once decommissioned are already being considered for a second life.

Oil fell to its lowest level in two weeks amid growing concerns about the prospects for global energy demand due to long-term quarantine measures in Shanghai. The prospect of slowing economic growth this year amid higher interest rates in the US has already led to a downward revision of oil demand forecasts. The longer the war in Ukraine last and restrictions persist in China, the greater the risk that demand growth will be even weaker. Analysts of Eurasia Group consulting company stated this.

Gold continues to decline, although yields on 10-year US Treasury bonds are falling for the third day in a row. As a rule, these instruments have an inverse correlation. But it should be noted that gold also depends on the dollar index. The rising dollar index negatively affects precious metals.

Asian markets traded lower yesterday. Japan's Nikkei 225 (JP225) decreased by 1.90%, Hong Kong's Hang Seng (HK50) fell by 3.73%, and Australia's S&P/ASX 200 (AU200) ended the day down by 0.08%. With the start of the third month of the war in Ukraine and growing fears about the COVID-19 outbreak in China, which caused Chinese stocks to collapse, investors are getting rid of currencies such as the Australian dollar and the Chinese yuan.

Main market quotes:

S&P 500 (F) (US500) 4,296.43 +24.65 (+0.58%)

Dow Jones (US30) 34,052.03 +240.63 (+0.71%)

DAX (DE40) 13,924.17 −217.92 (−1.54%)

FTSE 100 (UK100) 7,380.54 −141.14 (−1.88%)

USD Index 101.71 +0.49 (+0.48%)

Important events for today:
  • – Japan Unemployment Rate (m/m) at 02:30 (GMT+3);
  • – US Core Durable Goods Orders (m/m) at 15:30 (GMT+3);
  • – US New Home Sales (m/m) at 17:00 (GMT+3);
  • – US CB Consumer Confidence (m/m) at 17:00 (GMT+3).

by Justforex, 2022.04.26

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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