Arizona Tribune - Global stock markets diverge as investors focus on earnings

NYSE - LSE
RBGPF 100% 61.84 $
BCC -0.19% 140.09 $
SCS -0.3% 13.23 $
NGG 0.61% 62.75 $
GSK -1.95% 33.35 $
CMSC 0.08% 24.57 $
AZN -2.86% 63.23 $
RIO 0.9% 60.98 $
RELX -3.37% 44.45 $
CMSD 0.34% 24.44 $
RYCEF 0.59% 6.82 $
BCE -0.07% 26.82 $
JRI 0.18% 13.1 $
VOD 1.03% 8.77 $
BTI 2.47% 36.39 $
BP -0.24% 28.98 $
Global stock markets diverge as investors focus on earnings
Global stock markets diverge as investors focus on earnings / Photo: GREG BAKER - AFP/File

Global stock markets diverge as investors focus on earnings

Wall Street shares climbed Wednesday after a tech selloff the previous day over concerns about the red-hot semiconductor industry, while third-quarter earnings reports continue to roll in.

Text size:

On Tuesday, US shares tumbled after Dutch tech giant ASML, which supplies chip-making machines to the semiconductor industry, cut its 2025 guidance and forecast a slump in orders.

But strong pre-market third-quarter results on Wednesday from Morgan Stanley and United Airlines helped put a floor on the market, and all three major US indices ended the day higher.

The Dow added 0.8 percent and the wider S&P advanced 0.5 percent, while the tech-heavy Nasdaq crept up 0.3 percent even as chipmaker concerns lingered.

"The sting from ASML is still there... but the chance to buy the dip in the market is right there for participants who have taken that chance many times before and won," said Patrick O'Hare, an analyst at Briefing.com.

Jack Ablin of Cresset Capital noted that nuclear stocks were doing well after tech giant Amazon announced significant investments in nuclear energy Wednesday.

Amazon joins other companies in aiming to meet the high electric power demands of of artificial intelligence using atomic energy.

Frankfurt and Paris closed lower, with London rising as a positive inflation report fed expectations of an interest rate cut next month from the Bank of England.

Oil prices kept sliding but at a slower pace than in previous days. The dollar inched higher against its main rivals.

ASML shares fell another five percent in Amsterdam Wednesday after plunging about 16 percent Tuesday following its update near the end of trading.

"ASML's warning has spooked investors holding anything linked to the semiconductor space," said Russ Mould, investment director at traders AJ Bell.

On Wall Street Wednesday, chip titan Nvidia closed higher but rival AMD lost some ground. IT giant Intel was down 1.5 percent after losing more than three percent Tuesday.

United Airlines surged 12.4 percent and Morgan Stanley gained 6.5 percent on strong earnings reports.

In Paris, shares in Louis Vuitton-owner LVMH dropped more than four percent after the luxury heavyweight reported disappointing third-quarter results amid a slowdown in demand from Asia.

The announcement heightened investor concerns over a luxury sector heavily reliant on China, said market strategist Patrick Munnelly at traders Tickmill Group.

Gucci-owner Kering and Cartier-owner Richemont both fell more than one percent in their respective stock exchanges in Paris and Zurich.

Prada fell more than two percent in Milan as the sector struggles with weaker demand from China.

In London, the FTSE 100 rose after data showed UK inflation hit a three-year low in September, fueling speculation that the Bank of England would resume cutting interest rates next month.

Earlier, Japan's stock market shed almost two percent, while Shanghai made small gains.

Hong Kong ended lower again even as developers were boosted after the city's chief executive unveiled some measures to help its struggling real estate industry.

Oil prices steadied initially Wednesday and then resumed sliding.

Among pressures on the commodity were worries over demand from top importer China, a report from the International Energy Agency saying global markets remain "adequately" supplied and relatively modest output losses from hurricanes in the US Gulf Coast.

- Key figures around 2035 GMT -

New York - Dow: UP 0.8 percent at 43,077.70 points (close)

New York - S&P 500: UP 0.5 percent at 5,842.47 (close)

New York - Nasdaq Composite: UP 0.3 percent at 18,367.08 (close)

London - FTSE 100: UP 1.0 percent at 8,329.07 (close)

Paris - CAC 40: DOWN 0.4 percent at 7,492.00 (close)

Frankfurt - DAX: DOWN 0.3 percent at 19,432.81 (close)

Tokyo - Nikkei 225: DOWN 1.8 percent at 39,180.30 (close)

Hong Kong - Hang Seng Index: DOWN 0.2 percent at 20,286.85 (close)

Shanghai - Composite: UP 0.1 percent at 3,202.95 (close)

Euro/dollar: DOWN at $1.0859 from $1.0892 on Tuesday

Pound/dollar: DOWN at $1.2986 from $1.3066

Dollar/yen: UP at 149.63 yen from 149.22 yen

Euro/pound: UP at 83.62 pence from 83.33 pence

West Texas Intermediate: DOWN 0.3 percent at $70.58 per barrel

Brent North Sea Crude: DOWN LESS THAN 0.1 percent at $74.22 per barrel

F.Ramirez--AT