Global Markets had a rocky Tuesday amid fears over dropping eurozone and Chinese industrial production, rising U.S. manufacturing, and a scarcity of jobs. The Dow Jones Industrial Average rose 0.2% to 35,630.55, the S&P 500 fell 0.2% to 4,576.72, and the Nasdaq Composite fell 0.3% to 14,283.91.
Pfizer’s quarterly sales fell 1.2%, while Merck & Co.’s fell 1.3% despite upping its profit outlook. After better-than-expected second-quarter results, Caterpillar Inc. rose 8.8%. The corporation needs to be more apprehensive about third-quarter sales and profitability.
STOXX lost 0.9%, erasing July’s 2% gain. HSBC gained 1.3% after announcing a $2 billion share repurchase and a more significant profit objective, while U.K. markets declined 0.4%.
Industrial activity fell quicker in July 2020 than May 2020, lowering demand and forcing firms to slash prices, hurting European equities. Fed Concerns With hopes that last week’s rise would dissuade future tightening, the Fed faced pressure to suspend rate increases. Despite early gains, global economic worries caused Tuesday’s losses.
Michael Hewson, CMC Markets chief market analyst, voiced worries about the weakening economy, which might hinder profits growth in the second part of the year. Investors expect more government debt and economic growth despite the collapse, as 30-year Treasury note interest rates reached their highest level in a year. Lazard’s Chief Market Strategist Ronald Temple said that the fresh U.S. employment data suggests the Fed is avoiding recession and cutting inflation, which might decrease prices.
In July, investors expected a fall in global oil supply and increased demand in 2023 to lower oil prices. The dollar’s rise helped purchasers. Brent declined 0.36% to $85.12, while U.S. crude fell 0.29% to $81.56.
B.P.’s second-quarter revenues fell 70% to $2.6 billion, yet it raised its dividend by 10%. Bond rates and the currency increased Tuesday, while gold fell 1%. Investors focused on U.S. economic news this week, expecting Fed attention. As investors considered the Bank of Japan’s yield curve control adjustments and their implications on monetary policy, the dollar rose 0.35% versus six major currencies. It touched a three-week high against the yen. A private survey showed China’s slow flu recovery, which was worrisome. The Asia-Pacific stock index closed Monday 0.4% behind its April 2018 top, indicating regional problems