Markets.com Logo
euEnglish
LoginSign Up

European Stocks Steady After Wall Street rally, BoJ Unchanged

Apr 28, 2023
3 min read
Table of Contents
  • 1. Wall Street Bullish, Europe Steady
  • 2. Inflation Stubborn Despite Slower Growth
  • 3. Market Movers
  • 4. BoJ Plans Monetary Policy Review

Wall Street Bullish, Europe Steady

Stocks in Europe were steady early on Friday after a handsome gain for Wall Street reasserted the bullish trend. The S&P 500 rallied 2% back close to the big 4,150 level for its best day since January, led by gains for big tech as Meta shares leapt 14%. The Nasdaq composite added 2.4% and the Dow was up 1.6%. In early trading on Friday the DAX added 0.2% and the FTSE 100 declined by the same. EZ and US inflation numbers out today.

 

Inflation Stubborn Despite Slower Growth

Data yesterday pointed to the US economy slowing down with GDP +1.1% vs 2% expected, down from 2.6% in Q4...suggests Fed hikes are taking effect...near the top for rates? Maybe but inflation remains super sticky – core PCE prices came in at +4.9% from 4.4% previously and 4.7% estimate...this is higher than for a long while. Jobless claims...down 16k to 230k. Continuing claims steady...jobs data still holding up really well, fluctuations are not a trend. Consumer also seems to be holding up ok with real consumer spending +3.7% from +1.0% previous, GDP sales +3.4% vs +2.3% estimated.

 

Market Movers

Merck – beat $1.40 vs $1.32 expected, raises guidance for sales for the full year...sales still down 30% on the year. Caterpillar – bellwether stock - bottom line better than expected, EPS beating handsomely at $4.91 vs $3.78 estimate, and top line +17% to $15.9bn, ahead of $15.2bn expected. Energy & Transportation +24%, Resource Industries +21%, Construction +10%.

Amazon – huge unwind after-hours suggests things not quite as rosy as ‘earnings beats’ imply...uncertainty over the cloud business...something-something about AI spend...not great, shares down 2% after-hours after erasing a rally of as much as 12%. Not sure if it was when Andy Jassy jumped on the call or what happened but AWS revenue growth rates in April are running about 500 basis points lower than the first quarter pace, and executives say could slow further. The weird thing about these big tech earnings is that they are beating such low expectations – inflation adjusted revenues are basically flat to negative...no pricing power or what? Unilever and co are jamming +10% price hikes down their customers’ throats without any trouble.

First Republic – shares rose 9% yesterday...US officials are co-ordinating rescue talks for First Republic but they have not yet found a private sector solution. FRC said: "We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients."

first-republic-bank.jpg

 

BoJ Plans Monetary Policy Review

Bank of Japan unchanged at Ueda’s first meeting in charge but announced "a broad-perspective review of monetary policy, with a planned time frame of around one to one and a half years". The messaging was dovish, with the BoJ saying the risk from tightening too hastily is larger than monetary policy falling behind the curve ...but just like when they widened the 10yr envelope, they are trying to show that they are slowing putting the pieces in place to move when really they are doing very little or indeed nothing...maybe they just print forever until it all blows up? Tokyo core-core CPI rose 3.8%, fastest pace in 41 years...no urgency. Love this line from Ueda – chance of starting process of normalisation in one and a half years is not zero. Kicking the can big time, yen offered.

usdjpy-boj.png


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Neil Wilson
Written by
Neil Wilson
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    1.63%
  • EUR/USD

    chartpng

    --

    0.07%
  • Cotton

    chartpng

    --

    -0.07%
  • AUD/USD

    chartpng

    --

    0.08%
  • Santander

    chartpng

    --

    -1.36%
  • Apple.svg

    Apple

    chartpng

    --

    0.22%
  • easyJet

    chartpng

    --

    0.23%
  • VIXX

    chartpng

    --

    0.26%
  • Silver

    chartpng

    --

    0.11%
Tags DirectoryView all
Table of Contents
  • 1. Wall Street Bullish, Europe Steady
  • 2. Inflation Stubborn Despite Slower Growth
  • 3. Market Movers
  • 4. BoJ Plans Monetary Policy Review

Related Articles

US Inflation & Tariffs: Will the Fed Hike Rates?

June report reveals a slight acceleration in US inflation, raising questions about the impact of tariffs on consumer prices. The Federal Reserve is closely monitoring these developments.

Emma Rose|about 15 hours ago

Mnuchin Suggests Powell Resign from Fed Board After Chairmanship

Treasury Secretary Mnuchin suggests Powell leave his Fed board seat after his chairmanship to avoid potential market confusion. Trump seeks a Fed chair who supports his economic agenda.

Emma Rose|about 16 hours ago

Trump Encouraged Ukraine to Strike Deep Inside Russia: A Shift in Strategy and Potential Escalation

According to reports, former US President Donald Trump encouraged Ukraine to conduct deep strikes inside Russian territory. This shift in stance, if confirmed, could lead to a significant escalation in the Russia-Ukraine conflict.

Emma Rose|about 18 hours ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.