Investors await second-quarter results from the big tech giants
Wall Street stocks climbed to fresh all-time highs overnight, as investors shrugged off worries about the pandemic. Market players are looking ahead to a Federal Reserve two-day meeting that starts today. Jerome Powell is expected to reiterate that the tapering discussion is underway. The S&P 500 rose 0.2%, the Dow Jones Industrial Average gained 0.24%, and the Nasdaq Composite added less than 0.1%.
Asian equities were mixed on Tuesday, with Chinese and Hong Kong stocks leading the losses again. The Shanghai Composite Index plunged nearly 2.5% and the Hang Seng shed 4.22%. As a reminder, over the weekend, after Beijing announced additional enforcement measures on technology, real estate, and for-profit education ventures. Elsewhere, the Nikkei 225 in Japan advanced 0.49%, Sydney’s S&P-ASX 200 added 0.50%, and the Kospi in Seoul rose 0.24%.
In Europe, stocks opened lower, continuing to digest China’s regulatory crackdown. US stock index futures were also under some pressure, as investors awaited second-quarter results from the big tech giants including Apple and Microsoft due later today.
Meanwhile, the dollar is mostly higher as the risk-off tone prevails again. EURUSD failed to hold above the 1.1800 figure and was last seen trading at 1.1775, down 0.20% for the day. Later today, the selling pressure surrounding the common currency could intensify if fresh economic data out of the United States surprises on the upside. In this scenario, the pair may threaten the 1.1750 region. The upcoming FOMC meeting could also add to the negative sentiment surrounding the euro through a stronger dollar.