Global equity markets moved without clear direction on Tuesday as investors weighed mixed corporate earnings and the outlook for the technology sector ahead of key economic releases, with disappointing US retail sales data adding to caution.
US retail sales for December showed no growth, falling short of expectations and raising concerns over the strength of consumer spending. The report precedes US employment data, now scheduled for Wednesday after a brief government shutdown delayed its release, and later inflation figures.
“It’s a big week for economic data, with fresh reads on the consumer, jobs, and inflation. So far, the tone has been disappointing,” said Brett Kenwell, US investment analyst at eToro. “Volatility has returned to Wall Street, but it isn’t hitting everything equally. Cryptoassets, precious metals, software, and broader tech have been whipsawed, while other areas have held up well.”
The Dow recorded a fresh all-time high for the third consecutive day, while the S&P 500 and Nasdaq retreated.
In Europe, Paris closed marginally higher, while Frankfurt and London lost around a quarter of one per cent. Gucci owner Kering surged 11 per cent on the Paris CAC 40 after reporting earnings above estimates despite a fall in net profit. BP shares in London fell nearly six per cent following a suspension of share buybacks and a sharp drop in annual net profit. AstraZeneca advanced two per cent on stronger cancer drug sales.
In Asia, Tokyo rose more than two per cent to a record high following Prime Minister Sanae Takaichi’s decisive parliamentary election victory. Analysts note her clear mandate to pursue expansionist fiscal policy could spur growth, though concerns remain over Japan’s mounting public debt and its potential impact on government bond yields and the yen.
Oil prices slipped after Monday’s strong session on Wall Street, where tech giants Microsoft, Meta, and Nvidia led gains.
“The past week has highlighted that there will be both winners and losers from AI,” said Joshua Mahony, chief market analyst at Scope Markets. Investors remain cautious over the vast sums invested in artificial intelligence, questioning when profits will be realised.
Key figures at around 2115 GMT - New York - Dow: UP 0.1 per cent at 50,188.14 (close) New York - S&P 500: DOWN 0.3 per cent at 6,941.81 (close)
New York - Nasdaq Composite: DOWN 0.6 per cent at 23,102.48 (close)
London - FTSE 100: DOWN 0.3 per cent at 10,353.84 (close)
Paris - CAC 40: UP 0.1 per cent at 8,327.88 (close)
Frankfurt - DAX: DOWN 0.1 per cent at 24,987.85 (close)
Tokyo - Nikkei 225: UP 2.3 per cent at 57,650.54 (close)
Hong Kong - Hang Seng Index: UP 0.6 per cent at 27,183.15 (close)
Shanghai - Composite: UP 0.1 per cent at 4,128.37 (close)
Euro/dollar: DOWN at $1.1899 from $1.1914 on Monday
Pound/dollar: DOWN at $1.3644 from $1.3693
Dollar/yen: DOWN at 154.31 yen from 155.88 yen
Euro/pound: UP at 87.18 pence from 87.00 pence
Brent North Sea Crude: DOWN 0.4 per cent at $68.80 per barrel
West Texas Intermediate: DOWN 0.6 per cent at $63.96 per barrel
