London, United Kingdom – European stocks opened higher Thursday morning, with the Stoxx 600 index showing a 0.26% increase at 9:20 a.m. Sectors were trading mixed as major bourses saw climbs, with France’s CAC 40 and the U.K.’s FTSE 100 both up 0.5%, while Germany’s DAX increased by 0.1%.
Asia – Airline stocks in Asia experienced a surge as oil prices dropped by over 3% due to higher-than-expected U.S. inventory levels. Leading the rally were South Korean carriers Asiana Airlines, up nearly 4%, and Korean Air, posting a 3.23% gain. Australian flag carrier Qantas showed a 3.8% rise, while Japan’s ANA and Japan Airlines climbed 1.53% and 2.8%, respectively. Other airlines like Cathay Pacific and Singapore Airlines also saw smaller gains.
Washington, D.C. – The U.S. government acknowledged Japan and South Korea’s concerns regarding the recent sharp depreciation of the yen and the won. Following a trilateral meeting between the top finance officials of the three countries, they agreed to consult closely on foreign exchange market developments. The Japanese yen recently hit its weakest level against the U.S. dollar in 34 years, trading at 154.26, while the South Korean won also reached its weakest level against the greenback in about 18 months, trading at 1,377.11.
Morgan Stanley and HSBC are reported to be cutting dozens of investment banking jobs in the Asia-Pacific region this week. Sources indicate that this move comes as the two banks increase cost-cutting measures, with weaker deal-making and sluggish markets in China and Hong Kong affecting business prospects. Morgan Stanley is said to be cutting at least 50 investment banking jobs affecting around 13% of its Asia investment banking workforce, while HSBC has reportedly begun layoffs affecting around 30 dealmakers.
The Nasdaq Composite index is on track for its longest weekly losing streak since December 2022, facing a potential 3% decline for the week if it ends in the red. A decline in tech shares, with Nvidia posting a nearly 4% drop, has dragged the S&P 500 and Nasdaq into their fourth consecutive losing session. The slump in tech shares also pushed the two indexes deeper into negative territory for April.
Barclays suggests that a strong slate of first-quarter earnings could help protect markets from high interest rates. Analyst Emmanuel Cau stated that the lowered Q1 estimates offer room for beats, and as long as improving activity data keep an FY24 earnings recovery on track, “buy the dip” may work. However, Cau added that “re-rating leaves little margin for error.”
Stock futures showed little change on Wednesday after the S&P 500 endured its fourth-straight losing session. Futures tied to the broad market index inched up 0.02%, with Nasdaq 100 futures adding 0.1% and Dow Jones Industrial Average futures slipping slightly by 0.01%.