Investors woke up to the bed aspect on Friday, or perhaps they are simply in a position to end the month, start the week and spend the holidays, be that as it may, a day after leading the major European and U. S. indices. until reaching all-time highs, they are in the mood to sell on the last trading day of July.
A day after New York’s 3 primary markets rose despite knowledge of U. S. GDP. U. S. That fell to expectations: the S
Much of the weakness in the tech index can be attributed to a hangover from Amazon’s first deficit in 3 years (revenue is under Wall Street consensus), which caused inventory to fall more than 7% after hours before recovering a piece in pre-market trading. .
In Europe, after a day in which inventory markets rose in all spaces, and the Stoxx 600 reached a new record high, inventories also fell. Even the UK news that weekly instances of COVID had fallen by more than a third did not save the situation.
Beyond the weekend’s exhaustion and Amazon’s disappointment, investors are also worried about today’s inflation figures.
The initial estimate of euro zone inflation in July came out this morning and, at 2. 2%, since October 2018, exceeded the European Central Bank’s 2% for the first time in 3 years. put to the test through Germany’s announcement on Thursday that the annual inflation rate in July rose 3. 1% higher than expected, since August 2008, and through a primary union’s call for “big wage increases. “
Friday is also inflation day in the United States, with the morning of the Fed’s favorite indicator, the Personal Consumer Spending Price Index (PCE).
Asian markets returned to their punitive mindset after taking a break on Thursday. At the end of a grim week ruled by considerations about Beijing’s crackdown on tech and school companies, especially those seeking entry into the U. S. U. S. , Investors turned their backs on regulators. ‘Attempts to appease them and send stocks plummet again.
Despite declines in all areas, it’s worth noting that July was a smart month for European markets and Deutsche Bank Research’s Jim Reid noted that solid corporate earnings and Fed Chairman Jerome Powell’s dovish stance helped counter the emerging overall sentiment of COVID. Indeed, “the effect of further instances on markets has been dampened by expectations that central banks, in turn, will be more cautious about the flight of financial stimulus in the coming months. “
Now let’s see what makes markets move.
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Overnight in Asia, sentiment weakened: the Nikkei lost 1. 8%, the Hang Seng fell 1. 4%, the Shanghai Composite fell 0. 4% and the Kospi fell 1. 2%, all wasting floor at the end of a month of poor functionality for the region’s stocks.
The yuan rose shortly after the big sale at the start of the week, trading at 6. 4624 per US dollar from 6. 528 in midweek.
Japan’s largest investment and brokerage bank, Nomura Holdings, reported a 66% drop in its first-quarter profit due to a slowdown in business activities and a loss reported by the Archegos scandal.
The FT notes that Chinese-generation stocks listed in the U. S. U. S. They will close out their worst month since the global currency crisis as investors abandon their shares following the regulatory crackdown in Beijing. it has fallen 22% so far in July.
European stocks opened lower after yesterday’s all-time high, with the FTSE hundred down 0. 8% in morning trading, while the Stoxx Europe 600 is down 0. 5%.
Another day, deluge of effects with figures from BNP Paribas, Renault, Air France-KLM and IAG.
German inflation rose by 3. 1% in July, from August 2008, with higher-than-expected figures prompting unions to call for rapid wage increases.
The initial estimate of eurozone GDP for the current quarter was published on Friday and, at 2% quarter-on-quarter and 13. 7% consistent with the year, exceeded expectations.
In the UK, instances of the Delta COVID variant have declined. As the country nervously watches Boris Johnson’s bid to open up the British economy, the stock has fallen 37% over the following week, one of the fastest declines ever recorded in a week without getting married. .
Nasdaq hundred futures fell 1. 27% at 4:30 a. m. ET while those similar to S
As closures loosened, Amazon consumers “were doing other things besides shopping,” said the e-commerce giant, which posted weaker-than-expected sales for the last quarter of the year. year. Its online store segment grew by 15%, its slowest expansion since 2019.
The value index rose 6% from the expected 5. 4% as inflation fears fade into the background.
Initial weekly job openings fell to 400,000 for the week ending July 24, the Labor Department reported, down 24,000 from last week, still 15,000 more than economists expected.
Gold remains stable, trading at about $1,830 an ounce.
He is also flat.
Crude oil has fallen, with Brent below $75 a barrel.
Bitcoin is also down, below $40,000.
This story originally appeared in Fortune. com