The sentiment deteriorated after downbeat warnings from Micron
Wall Street stocks fell on Tuesday as investors digested a series of disappointing quarterly reports while also awaiting a critical inflation report. The sentiment deteriorated after Micron warned that revenue may fall short of its prior guidance, citing macroeconomic factors and supply chain constraints. Shares of Micron fell 3.75%, weighing on other chipmakers. As a reminder, Nvidia disappointed investors by a weaker-than-expected revenue guidance. earlier in the week. The S&P 500 fell 0.42%, the Nasdaq Composite dropped 1.19%, and the Dow Jones Industrial Average shed 0.18%.
Following suit, Asian equity markets dipped on Wednesday ahead of US inflation data. The Shanghai Composite Index lost 0.54% and the Nikkei 225 in Tokyo sank 0.65%. The Hang Seng in Hong Kong plunged 2.15%. The Kospi in Seoul fell 0.9% and Sydney’s S&P-ASX 200 was 0.53%. On the data front, China’s consumer price index rose by 2.7% in July from a year earlier, up from a rise of 2.5% in June.
European stocks opened lower, with the pan-European Stoxx 600 falling 0.4% in early deals. Fresh data showed that German final July consumer price inflation came in at 7.5% year-on-year and 0.9% on a monthly basis, roughly in line with expectations. In individual stocks, Ahold Delhaize shares gained 5% in early trade after the retailer reported strong second-quarter earnings. US stock index futures were flat in early premarket trade.
Meanwhile, the dollar is holding above 106.00 after a modest ascent on Tuesday. The USD index still struggles for direction but could switch back into volatile trading should the US data point at elevated inflation or reflect a much slower CPI growth than expected. Ahead of a key release, the greenback struggles to capitalize on risk-off trades dominating global financial markets these days. EURUSD continues to oscillate around the 1.0200 figure, still deriving support from a slightly ascending 20-DMA amid lack of USD demand.
