Global Markets Brace for Big Tech Earnings and Key Central Bank Decisions

Global stock markets were mixed on Tuesday as investors awaited major technology earnings reports and central bank decisions, while assessing demand for artificial intelligence (AI), semiconductor growth and inflation risks.

In early European trading, Germany’s DAX fell 0.1 per cent to 25,373.71, France’s CAC 40 declined 0.3 per cent to 7,824.83, and Britain’s FTSE 100 dropped 1 per cent to 10,664.58. Futures for the S&P 500 slipped 0.1 per cent, while those for the Dow Jones Industrial Average were little changed.

Asian markets were mixed. South Korea’s Kospi closed 3.1 per cent higher at 5,638.34, supported by gains in AI-related stocks. SK Hynix rose 5.2 per cent and Samsung Electronics gained 4.2 per cent ahead of their quarterly earnings announcements. Tokyo’s Nikkei 225 advanced 1.7 per cent to 63,268.37, while Hong Kong’s Hang Seng fell 0.7 per cent and Shanghai’s Composite Index declined 1.3 per cent. India’s Sensex slipped 0.5 per cent.

Investors are closely watching quarterly results from major technology companies. Alphabet and Microsoft are scheduled to report on Wednesday, followed by Amazon on Thursday. The results are expected to provide further information about AI-related investment, data-centre spending and the financial returns from expanding computing capacity.

Concerns over the cost of developing AI infrastructure have contributed to volatility in technology stocks. Investors are assessing whether spending on chips and data centres can generate sufficient revenue and productivity gains to justify the investment.

On Monday, the S&P 500 gained 0.7 per cent, the Dow rose 0.3 per cent and the Nasdaq Composite advanced 0.8 per cent. Nvidia climbed 2.4 per cent, helping the chipmaker recover some recent losses.

Central bank policy remains another focus for investors amid persistent inflation concerns. Market participants are monitoring interest-rate decisions and policymakers’ comments for indications of the outlook for borrowing costs and economic growth.

In commodity markets, Brent crude rose 0.7 per cent to USD 111.54 a barrel, while US benchmark crude gained 0.7 per cent to USD 102.47. The dollar strengthened to 157.75 Japanese yen, while the euro slipped to USD 1.1154.