Global stocks slipped on Thursday as investors digested a slew of corporate earnings reports and awaited key economic data. Wall Street futures pointed to a lower open, with the S&P 500 and Dow Jones Industrial Average set to decline. In Asia, Japan’s Nikkei 225 dipped 0.5%, while Australia’s S&P/ASX 200 slipped 0.3%.
Hong Kong’s Hang Seng lost 0.1%, and South Korea’s Kospi dropped 1.5%. The Shanghai Composite was a rare bright spot, adding 0.4%. The Bank of Japan kept its benchmark interest rate unchanged at 0.25%, as widely expected.
The central bank reiterated its commitment to increasing rates should the country’s economy continue to recover, but emphasized caution in light of overseas economic conditions, particularly in the U.S.
China’s factory activity expanded for the first time since April, with the manufacturing PMI rising to 50.1, beating expectations.
Markets digest mixed earnings reports
However, this positive news failed to lift the overall sentiment in the region.
In the U.S., several major technology companies reported earnings overnight. Apple shares fell 3.6% despite better-than-expected profits, as investors sought more significant AI-related growth. Meta, Facebook’s parent company, warned of a substantial increase in infrastructure spending next year, causing its shares to drop 2.6%.
Ebay tumbled 7.2% after issuing a conservative forecast, while Uber slid 5.3% as its gross bookings growth slowed. On the other hand, online travel company Bookings Holdings saw shares climb over 6% after surpassing analysts’ targets. Investors are also keeping a close eye on the upcoming U.S. presidential election and the Federal Reserve’s preferred inflation measure, the personal consumption expenditures data, which is set to be released later today.
As the market navigates through mixed earnings reports and economic data, volatility is expected to remain elevated in the near term.
