Balancing caution with curiosity: Investors tread lightly as tech titans ready earnings, fiscal strategies loom large, and financial sectors flex amidst interest rate whispers. HSBC and Pearson are among the best performing stocks today.
The London Stock Exchange kicked off Tuesday with a modest flourish, as investors eagerly awaited earnings from U.S. tech titans, starting with Alphabet, Google’s parent company. The FTSE 100 edged up by 0.3%. Meanwhile, all eyes are on the forthcoming UK government budget announcement.
Across the pond, Alphabet is set to unveil its earnings after the market closes. Investors are also keeping a keen eye on employment data and the Federal Reserve’s interest rate decisions. Analysts are betting on a 25 basis point rate cut next week, with a near-certain probability of 97%.
Yesterday, equity markets were in a buoyant mood, although the Nasdaq played it safe, missing the chance to surpass its July record high. U.S. indices were initially hampered by a sharp drop in oil prices but found solace in a robust financial sector, nudging the S&P 500 up by 0.3% and the Dow Jones by 0.65%. Despite this, both indices are yet to reclaim their October 18 peaks. The earnings season has been a mixed bag so far: companies are beating forecasts, thanks to analysts’ persistent pessimism and companies’ clever investor relations, yet the margin for outperformance is slimmer than usual. Earnings beats are reportedly at their lowest in nearly two years.
In corporate news, HSBC reported a 9.9% rise in third-quarter pretax profit to $8.48 billion, outpacing expectations, and announced a $3 billion share buyback. Revenue climbed 5% to $17 billion, buoyed by growth in Wealth and Personal Banking.
BP plc also exceeded profit forecasts despite a 70% plunge in third-quarter profit due to weaker refining margins. It declared a $1.75 billion share buyback and a 10% dividend hike. BP’s shares remain under pressure
Pearson reported a 5% sales growth for the third quarter, in line with full-year expectations. The company’s shares rose 2.3%.
Things to read today: