The Dow and the S&P 500 finished slightly above the flatline on Monday, while the Nasdaq lost 0.3% as investors’ focus is on a week packed with big tech earnings and economic data.  So far, quarterly reports from corporate America have indicated that companies are holding up well against macro headwinds like persistent inflation and rising interest rates.  In Europe, the major equity markets finished marginally lower but still close to this year’s highs. 

Summary as at 25.04.2023 

  • Most Asian equities fell this morning, with South Korea’s Kospi plummeting on a soft GDP reading, while losses in US technology shares spilled over into regional markets amid concerns over a slowdown in earnings.  The Nikkei 225 and Topix rose, while the Hang Seng and Shanghai Composite fell.  Markets in Australia and New Zealand are closed for a holiday. 
  • European equities are under pressure following muted moves in the US and Asia as investors look ahead to corporate earnings reports from mega-cap technology and consumer discretionary names, as well as more economic data. 
  • Oil prices were steady on Tuesday after rising for two straight sessions, as investors continued to assess the demand and supply outlooks.  Oil prices got a boost from hopes that the upcoming Golden Week holidays in China would drive up fuel demand amid increased travel.  A pullback in the dollar also supported crude prices, though investors remain cautious about further central bank policy tightening that could hurt global growth and energy demand. 
  • Banco Santander this morning reported an increase in net profit for the first quarter and said it is on track to meet its full-year targets.  The Spanish lender reported a quarterly profit of €2.57 billion compared with €2.54 billion in the same period a year earlier and above analysts’ expectations of €2.50 billion.  Profit was supported by customer activity growth, asset quality and cost control. 
  • Also this morning, UBS reported $1.03 billion in net profit for the first quarter, down 52% year-on-year amid a legacy litigation matter.  Analysts had estimated it would post a net profit of $1.75 billion for the quarter.  The Swiss bank increased its provisions of $665 million following a US residential mortgage-backed securities litigation.  The lender said it attracted $28 billion in net new money in its global wealth management unit, of which $7 billion were registered in the last 10 days of March and therefore after the announcement of its acquisition of Credit Suisse. 
  • Coca-Cola beat Wall Street estimates for quarterly revenue on Monday, as demand for its sodas remained resilient in the face of multiple price increases.  The company said net revenue rose to $11 billion from $10.49 billion in the first quarter, compared with analysts’ average estimate of $10.80 billion.  The shares ended marginally lower yesterday after registering gains of over 1% earlier in the session. 
  • Shares of First Republic Bank fell more than 20% in extended trading on Monday after the regional bank reported that deposits tumbled 41% to $104.5 billion in the first quarter.  The lender also said it expects to reduce its workforce by nearly 20-25% in the second quarter.