- Despite very solid reports from Microsoft and Meta Platforms, U.S. index contracts lost in after-hours trading and closed yesterday's session lower; the Nasda100 lost 0.8% and the S&P 500 lost more than 0.3%. Meta's fourth-quarter revenue guidance disappointed analysts' expectations, with pre-market quotes suggesting a roughly 2.5% drop in the stock. Microsoft, on the other hand, is gaining 1%; the company beat market forecasts and presented more than 30% revenue growth in the Azure cloud.
- Robinhood's stock loses 10% after a lackluster report; the company missed earnings expectations, while Microstrategy also slides 8%. Starbucks shares tumbled only slightly, by 1%, after disappointing earnings. The company indicated a 9% decline in comparable sales; a 14% decline in China and a 6% decline in the US. However, a weak report was anticipated and didn't surprise Wall Street. Amazon will report results after the session today.
- The Bank of Japan kept interest rates unchanged at 0.25% and in line with the markets' forecast; the decision was unanimous. The USDJPY pair lost, however, after the decision, which appeared to traders as a 'fact sale. Japanese home construction showed -0.6% y/y growth, vs. -4.25% forecast and -5.1% previously. Japan's Nikkei and Topix indices lost -0.5% and -0.3%, respectively
- BoJ Governor Ueda indicated that expected inflation is likely to be lower in 2025, indirectly due to oil price reasons. Ueda stressed that the weak yen makes Japanese businesses perform better and are more likely to raise wages and prices. He also indicated that the currently loose monetary policy will be adjusted accordingly if the economy meets the BoJ's target for economic growth and prices; the bank expects that core CPI inflation will hoover at 2% level between fiscal 2024 - 2026 period.
- According to Ueda, Japan economy is recovering moderately; sees continuing economic growth above potential. The BoJ governor also claims that price increases due to higher wages may be stronger than previously expected. Real GDP fiscal 2026 growth median forecast for Japan was lifted to 4% vs 1% in July; 2026 Core CPI growth pace unchanged at 2.1%. Currently, the USDJPY pair is losing 0.3%
- PMI data from the manufacturing sector according to China's National Bureau of Statistics (NBS) indicated 50.1, slightly above the 49.9 forecast and 49.8 previously. PMI according to the NBS outside the manufacturing sector indicated 50.2, below 50.3 expectations and slightly above 50 previously. The benchmark Hang Seng gained slightly 0.2%; the mainland CSI index rose similarly 0.2%.
- Australia's ASX retreated more than 0.25%. Retail sales in Australia rose below forecasts of 0.1% m/m vs. 0.3% forecast and 0.7% previously. Export prices fell -4.3% y/y vs. 4% expectations and -5.9% previously, while imported goods fell -1.4% vs. -0.3% expectations and 1% previously. Private sector credit rose 0.5% y/y
- The dollar gains slightly, with the EURUSD pair retreating -0.10%, below 1,085. European index futures suggest a slightly lower opening; the DE40, UK100 and EU50 lose between -0.2 and -0.3%. Cryptocurrency market sentiment remains quite positive, with Bitcoin holding above $72,200. Oil futures are trading flat today, and agricultural commodities are mostly losing; wheat futures are slipping more than 1%, below $570 per bushel; cotton is also deepening declines
- The United States has indicated that Iran should not respond to Israel's latest precision attack and has clearly declared support for Israel, should it counterattack.
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