Reports from Google and Microsoft failed to keep major indices from falling.

On Tuesday, Google missed Wall Street estimates for quarterly sales, the first drop since the pandemic began, as advertisers cut spending amid growing fears of a global economic slowdown. The company's stock fell more than 8% in the late session. Microsoft has exceeded Wall Street's expectations for quarterly revenue, driven by high demand for the software giant's cloud services because of the pandemic-induced shift to hybrid operating models. But despite such positivity, the company's stock fell more than 3.5% after closing. Amid fears that Elon Musk will have to pledge or sell most of Tesla's shares to buy the social network Twitter, the electric car maker's shares fell by 12% yesterday. In addition to the drop in the tech sector, other companies' financial performance also exacerbated the sell-off caused by the downturn in regional banks amid weaker quarterly results and falling Treasury bond yields. After the stock market closed yesterday, the Dow Jones index (US30) decreased by 2.38%, the S&P 500 index (US500) lost 2.81%, and the NASDAQ Technology Index (US100) fell by 3.95%.

The US consumer confidence index fell to 107.3 points in April from a revised 107.6 points in March. US new homes sales in March fell by 8.6% from the previous month to an annualized rate of 763,000. The index declined for the third month in a row.

Major European indices traded lower yesterday. Germany's DAX (DE30) decreased by 1.20%, France's CAC 40 (FR 40) lost 0.57%, Spain's IBEX 35 (ES35) fell by 1.58%, and Britain's FTSE 100 (UK100) added 0.08%. Investors expect European stock markets to open lower on Wednesday as economists digest escalating geopolitical tensions and unfavorable global growth prospects. Russia begins gas blackmailing Europe over countries' unwillingness to pay for gas in rubles. Russia's Gazprom has informed Bulgarian gas company Bulgargaz and Poland's PGNiG about the suspension of gas supplies starting on April 27 due to a refusal to pay in Russian rubles. At the same time, Germany can afford to give up Russian oil, said German Economy Minister Robert Habeck. The share of Russian oil in supplies to Germany fell to 12% from 35%, and it is intended only for a refinery in Schwedt. Habeck suggested that it would take only a few days to find an alternative to these supplies.

Russian Foreign Minister Sergei Lavrov has said that if the US and its allies continue to supply weapons to Ukraine, there is a risk that the war could escalate into a wider conflict with NATO countries.

The escalation of Russia's quarrel with the West caused oil prices to rise yesterday. Black gold prices rose by 3%, recovering from three days of declines.

Asian markets traded yesterday without a single trend. Japan's Nikkei 225 (JP225) gained 0.41%, Hong Kong's Hang Seng (HK50) jumped by 0.33%, and Australia's S&P/ASX 200 (AU200) ended the day with a 2.08% drop. Traders are under pressure from factors such as the coronavirus outbreak in China, rising inflation rates, and prospects of central banks' rates increasing. All of them contribute to growing concerns about further economic growth and cause volatility in the market. Beijing is undergoing mass testing after increasing Covid-19 cases, raising fears that the Chinese capital could face a lockdown. Chinese President Xi Jinping is demanding that officials ensure that China's GDP growth rate this year surpasses that of the United States, despite the adverse effects of another COVID-19 outbreak in the country.

Main market quotes:

S&P 500 (F) (US500) 4,175.20 −120.92 (−2.81%)

Dow Jones (US30) 33,240.18 −809.28 (−2.38%)

DAX (DE40) 13,756.40 −167.77 (−1.20%)

FTSE 100 (UK100) 7,386.19 +5.65 (+0.077%)

USD Index 102.34 +0.59 (+0.57%)

Important events for today:
  • – Australia Consumer Price Index (q/q) at 04:30 (GMT+3);
  • – Eurozone ECB President Lagarde Speaks at 14:30 (GMT+3);
  • – US Pending Home Sales (m/m) at 17:00 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

by Justforex, 2022.04.27

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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