(Bloomberg) — Stocks traded mixed as focus turned from US politics to a heavy week for company earnings with tech giants Tesla Inc. and Alphabet Inc. due to report later Tuesday.
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Europe’s Stoxx 600 Index was little changed, while US equity futures pointed to a lower open on Wall Street. In Asia, gains for Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. buoyed the MSCI Asia Pacific Index. The dollar and US Treasuries traded steady.
Companies representing 29% of the S&P 500’s market value are due to report this week and investors are waiting to see if the rally in tech stocks has room to extend after hitting a wall. Analysts are keen for details of Tesla’s robotaxi service, while AI offerings are seen boosting Alphabet’s Google Cloud revenue.
US election developments are still front and center, with Kamala Harris now having more than enough pledged delegates to clinch the Democratic presidential nomination.
“Historically, presidential election years have been favorable for equity investors,” said Kieran Calder, head of equity research for Asia at Union Bancaire Privee in Singapore. “We think that the underlying economy and earnings picture is good for the market, and investors can be rewarded for looking past US election drama.”
In economic data, US readings on the economy are due later in the week as well as the Federal Reserve’s preferred inflation gauge.
The yen strengthened against the dollar as traders look set to trim their carry positions during a summer holiday season. Some Bank of Japan officials are open to raising rates at the July meeting while others see weakness in consumer spending complicating their decision, according to people familiar with the matter.
In commodities, oil was steady near a six-week low.
Corporate Highlights:
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Porsche AG lowered its outlook for the year, saying a shortage of aluminum parts could cause it to stop production of some models, adding to pressure from slowing sales in China.
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Cybersecurity startup Wiz Inc. has turned down a takeover bid of as much as $23 billion from Alphabet Inc., sticking instead with a plan for an initial public offering.
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Banco Sabadell SA’s profit jumped in the second quarter, bolstering Chief Executive Officer Cesar Gonzalez-Bueno’s attempt to prevent a takeover by rival BBVA SA.
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Kako Corp. slumped after South Korean authorities arrested its founder Brian Kim over allegations of market manipulation.
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Toyota Motor Corp. is set to announce the buyback of its own shares from major Japanese banks and insurers as part of a ¥1 trillion repurchase plan.
Key events this week:
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Eurozone consumer confidence, Tuesday
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US existing home sales, Tuesday
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Alphabet, Tesla, LVMH earnings, Tuesday
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Canada rate decision, Wednesday
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US new home sales, S&P Global PMI, Wednesday
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IBM, Deutsche Bank earnings, Wednesday
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Germany IFO business climate, Thursday
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US GDP, initial jobless claims, durable goods, Thursday
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US personal income, PCE, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 was little changed as of 8:21 a.m. London time
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S&P 500 futures fell 0.3%
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Nasdaq 100 futures fell 0.5%
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Futures on the Dow Jones Industrial Average fell 0.1%
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The MSCI Asia Pacific Index rose 0.3%
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The MSCI Emerging Markets Index rose 0.1%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0882
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The Japanese yen rose 0.4% to 156.49 per dollar
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The offshore yuan rose 0.1% to 7.2883 per dollar
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The British pound was little changed at $1.2921
Cryptocurrencies
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Bitcoin fell 2.3% to $66,606.04
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Ether fell 1% to $3,454.25
Bonds
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The yield on 10-year Treasuries was little changed at 4.24%
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Germany’s 10-year yield declined one basis point to 2.49%
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Britain’s 10-year yield was little changed at 4.16%
Commodities
This story was produced with the assistance of Bloomberg Automation.
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