The analytical department of SB Investment Group shares its view of the markets for the last week of April.
Asian stocks were mostly up moderately during sluggish trading on Wednesday, as investors awaited news from the Federal Reserve Board meeting.
Japan's Nikkei 225, +0.21% added 0.4% in morning trading, while the Topix also gained 0.16%.
European stock indices fell amidbusy reporting day. At the time of writing, the UK's FTSE 100 was down 0.12%, while France's CAC was trading down 0.11%. The German DAX fell 0.24%.
Long-Term Treasury Bond Yieldsincreased to its highest in nearly two weeks at 1.647%, and the dollar strengthened as investors awaited clues about the timing of the Federal Reserve's stimulus reduction. US stock index futures were mixed as Americans braced for Joe Biden's tax plans.
SBIGR analysts believe that global markets are looking fornew catalysts: shares are trading near record highs. Traders may need additional assurance that policymakers will not heed stronger economic data in order to keep rates ultra-low and the pace of bond purchases. In the face of impending tax increases, they cannot afford the slightest hint of tax cuts.
The Dow Jones and S&P 500 started the day virtually unchanged, with the Nasdaq down 0.34%.
In foreign exchange markets, the dollar index rose 0.14% to hit 91.015, bouncing from Monday's low at 90.679, its lowest since March 3.
The dollar rallied slightly against the yen and the British pound, but trading is expected to be sluggish until Powell speaks after the Fed meeting.
At the same time, the Australian dollar fell afterdisappointing consumer price data, and there was turmoil in the cryptocurrency market as the European Investment Bank said it would sell a two-year digital bond worth 100 million euros ($120.80 million) on the blockchain network Ethereum. However, the coin gained 2.36% to $2,601.08.
Rival cryptocurrency Bitcoin fell to $54,318.
Crude oil futures fluctuated betweenprofit and loss after OPEC + confirmed plans to add more barrels to the market at a time when the raging Covid-19 crisis in India dampens demand outlook.
WTI crude oil rose 0.1% to $62.99 a barrel, while Brent crude added 0.11% to $65.94 a barrel. Gold fell 0.76% to $1,765.35 an ounce.
The US economic calendar for today includes crude oil inventories at 17:30, FOMC Statement, Fed interest rate decision, FOMC press conference at 21:00.
In Canada, the core retail sales index will be released today at 3:30 p.m.
In Europe, ECB President Lagarde is expected to speak at 17:00.
In the income statement calendarlisted as: Apple (AAPL), Boeing (BA), Ford (F), Facebook (FB), Qualcomm (QCOM), Discovery Communications (DISCA), Shopify (SHOP), Spotify (SPOT), Yum Brands (YUM), eBay (EBAY), ServiceNow (NOW), Teladoc Health (TDOC) and MGM Resorts (MGM).
Microsoft's earnings outperformedthe 19% increase in revenue was the highest since 2018. Azure cloud revenue jumped 50%, but that was only in line with estimates. MSFT shares fell 3% in extended trading, paring losses amid upbeat earnings guidance. Shares rose 0.2% on Tuesday to 261.97, hitting a record high.
Google's profits crush views, while growthrevenue accelerated again to 34%, the best in recent years. The FANG giant also announced a $50 billion share buyback. Google shares jumped 4% overnight, signaling a new high. The stock fell 0.8% to 2,290.98 on Tuesday.
AMD's earnings beat forecasts for rapid growthsales of data center chips rose, while the chipmaker had forecast growth in the second quarter. AMD shares rose 4% overnight. Shares fell 0.2% to 85.21 on Tuesday.
Pinterest's Profits Outpaced Views, Butthe social site missed some user ratings and warned that user growth could slow as the economy recovers. PINS shares fell 11% over the extended period. The stock rose 1.11% to 77.58 on Tuesday.
Visa's profit exceeded target of 1.38dollars per share, down a penny from a year earlier. Visa shares rose 1% on an extended promotion. Shares fell 0.2% to 229.31 on Tuesday. Last week, Visa shares rose above $228.33.
Starbucks profits beat forecasts, but salesdecreased slightly. The coffee chain did offer reliable recommendations. SBUX shares fell 2% in overnight trading. Shares ended Tuesday up 0.2% at 116.15.
Deutsche Bank posted better-than-expected first-quarter net profit thanks to its investment banking business that outperformed its major U.S. rivals.
On Wednesday, a German lender reported a netprofit attributable to shareholders in the first quarter of € 908 million ($ 1.1 billion), compared with a loss of 43 million a year earlier. This exceeded consensus expectations of around 600 million euros.
This was Deutsche's most successful quarter sincefirst quarter of 2014, as revenue from fixed income trading, fixed income trading and provisioning and advisory services soared, also boosting profits at rival banks.
Deutsche said it now expects 2021 revenue to be little changed, down from a previous estimate that was slightly lower.
The bank hoped to cut costs to 18.5 billion eurosby 2021, but additional costs of around €400 million in bank levies and a deposit protection scheme in Germany following the collapse of Greensill Bank.
Profit figures were good news forCEO Christian Sewing, who two years ago embarked on a radical restructuring that included cutting 18,000 staff to return the bank to profitability.
Deutsche's core FX and fixed income trading business, which saw revenue rise 34% to nearly 2.5 billion euros, had its best quarter since 2015.
This growth is better than some US investment banks. Goldman Sachs reported a 31% rise in such trading in the first quarter, while JPMorgan saw growth of 15%.
Deutsche's revenue from the provision of servicescreation and consulting grew by 40% and showed the best quarter since 2017. This was partly due to its special purpose acquisition company (SPAC) business. Revenue from asset management grew by 23%.
Low interest rates and slowing global trade weighed on revenue at other Deutsche businesses, such as corporate and retail, where revenue remained flat.
Sign that the bank sees itself on the doorstepThe coronavirus pandemic is that he expects credit risk reserves to be around € 1.1 billion this year, up from € 1.8 billion last year.
