Written by Peter Nurse and Jessica Bahia Milo
Investing.com – Big tech’s earnings season is in full swing, with Google and Microsoft’s owner Alphabet set to launch ahead of the opening on Tuesday. The International Energy Agency has spoken of a global energy crisis as the pound continues to rise as Rishi Sunak is appointed the new UK Prime Minister, the third in less than three months.
US stocks are expected to open lower, while major European banks have started reporting results, with mixed receptions.
In Brazil, a two-day meeting to determine the course of monetary policy begins.
Here’s what you need to know about the financial markets on Tuesday, October 25th.
1. Alphabet and Microsoft budgets
Earnings season is in full swing this week, with the four largest US companies by market capitalization among those to announce results, starting Tuesday with Alphabet (NASDAQ 🙂 (BVMF 🙂 and Microsoft (NASDAQ 🙂 🙂 (BVMF: ).
Google owner Alphabet will be in the spotlight amid concerns about the impact of inflation on ad revenue growth after warning Snapchat (NYSE:: (BVMF :)), its first major social media company to launch, that it won’t generate revenue growth in the normally busy holiday quarter.
Microsoft is also likely to post its slowest quarterly growth in more than five years, amid doubts over whether the company will be able to maintain its annual forecast in the face of a downturn in the PC market.
US stock markets are expected to open slightly lower later on Tuesday, giving up some big gains from the previous session ahead of earnings reports from tech giants Alphabet and Microsoft, which could provide more clues about the health of the economy. from the United States of America.
At 8:08 am, it was down 122 points, or 0.39%, while it was down 0.26%, and it was down 0.02%. All three major monetary ratios rose about 1% on Monday.
The budgets to be released today are also: UPS (NYSE 🙂 (BVMF :), General Electric (NYSE: (BVMF :)), Coca-Cola (NYSE:: (BVMF):) and General Motors (NYSE:: (BVMF :)) before the market opens, while Chipotle Mexican Grill (NYSE 🙂 (BVMF :)) and Texas will be reported Tools (NASDAQ 🙂 (BVMF 🙂 after closing.
Macroeconomic data releases include October data from and, while the Fed chair is ready to speak.
2. “The first true global energy crisis”
The head of the International Energy Agency said last Tuesday that the world was in the midst of a “first true global energy crisis,” noting that LNG markets around the world were tightening and major producers shutting down supplies.
The rise in liquefied natural gas imports to Europe amid the Ukraine crisis and a possible recovery in China’s appetite for fuel will significantly shrink the market, said Fatih Birol, Executive Director of the International Energy Agency, adding that the recent OPEC+ decision to cut crude oil production by 2 million barrels per day was a positive decision. . A risky move.
Birol added that Europe can survive this winter if the weather remains mild, but there is the possibility of rationing if there is a very cold and long winter or if there are any surprises, for example the explosion of the Nordstream gas pipeline.
Oil prices drop at 08:31. West Texas Intermediate crude futures, traded in New York, fell 1.55% to $83.28 a barrel, while crude oil prices quoted in London and the global reference price fell 1.32% to $90.01 a barrel.
3. Cobum’s meeting begins with the identification of Cilic
This Tuesday, 25, the two-day meeting of the Monetary Policy Committee (MPC) begins to determine the path of the base interest rate for the Brazilian economy, and. Most economists expect the pause – or not yet known – to be held in contractionary policy at 13.75%.
Although inflation has declined in recent months, it is still far from the target set by the National Monetary Council (CMN) of 3.5%, with a variance of one and a half points, reaching the upper limit of 5%. With three consecutive monthly contractions, the annual rate of the broad CPI () declined to 7.17% in September.
The monetary tightening cycle began in March 2021, when the committee decided to raise the interest rate from 2% to 2.75% – the lowest level in history.
Selic’s latest increase occurred after a meeting that ended on August 3, and last month, Selic was kept at his current level. Economists consulted by the central bank do not expect to end the year at 13.75%, with annual inflation at 5.60%, closer to the upper limit of the target.
At 8:10 a.m., the pre-open was up 0.53%.
4. Sunak is named the new British Prime Minister.
Rishi Sunak has been officially appointed UK Prime Minister, a move already well received by markets with the former chancellor widely seen as the wisest financial option available.
A rose another 0.45% against the US dollar on Tuesday, while the yield was down 0.25%, after falling sharply on Monday, when it won the poll to be the leader of the ruling Conservative Party.
The 42-year-old former chancellor became Britain’s third prime minister in less than two months, the youngest in 200 years, and the first non-white leader. He now faces the daunting task of tackling a growing economic crisis, a warring political party and a deeply divided country.
“Now we need stability and unity, and I will make it my top priority to unite our party and our country,” Sunak said on Monday.
5. Balance sheets of European banks
The quarterly earnings season for Europe’s biggest banks kicked off on Tuesday, with UBS (SIX:) and HSBC (LON 🙂 receiving very different receptions in the market.
The Swiss banking giant reported a less-than-expected 24% drop in net income for the third quarter, which led to equity gains of more than 5%, with strong customer inflows and lower costs helping mitigate the impact of turbulent financial markets.
In contrast, HSBC shares fell more than 7% after the London-based bank reported a 42% drop in third-quarter profit, dragged down by loan losses and fees for selling its French business.
HSBC also appointed George Al-Hadiri as its new chief financial officer on Tuesday, a surprise move that puts it center stage to eventually succeed Noel Quinn as chief executive.
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