Russian gas deliveries to Germany have resumed via Nord Stream AG
Wall Street stocks rose on Wednesday mainly due to positive cues from quarterly earnings. Netflix posted a smaller-than-expected 1 million drop in subscribers in the second quarter and predicted it would return to customer growth during the third quarter. The company’s shares rallied 7.35% after the report. Tesla reported a smaller-than-expected drop in quarterly profit, sending stocks 1.5% higher in after-hours trading. The Nasdaq Composite jumped 1.58%, the S&P 500 advanced 0.59%, and the Dow Jones Industrial Average was up 0.15%.
Asian equity markets were mixed on Thursday as optimism over upbeat earnings was tempered by recession worries. During the meeting earlier today, the Bank of Japan maintained its ultra-low rate at -0.1%, as expected. Elsewhere, US President Biden said he will be speaking with China President Xi in the next 10 days. Tokyo’s benchmark Nikkei 225 finished 0.44% higher, Australia’s S&P/ASX 200 added 0.52%, Hong Kong’s Hang Seng fell 1.06% and the Shanghai Composite in China gave up 0.87%.
In Europe, stocks opened slightly lower ahead of the ECB’s latest monetary policy decision. The central bank is widely expected to announced the first interest rate hike in 11 years. Adding to a cautious tone in the regional markets, political uncertainty in Italy persists with Prime Minister Mario Draghi expected to tender his resignation later today. Early elections could now take place in autumn. Meanwhile, Russian gas deliveries to Germany have resumed via Nord Stream AG, as expected.
In currencies, the USD index is back under pressure after a short-lived and modest recovery seen on Wednesday. The greenback is now back below the 107.00 figure, albeit the bearish momentum looks limited for the time being as risk sentiment deteriorates after the recent rally across the financial markets. The index was last seen changing hands around 106.80, down 0.25% on the day. The key support arrives around 106.40, with downside risks limited while above this figure.