Hang Seng

Morning Brief: Nikkei 225, DAX Index, and Dow Jones Fall as DXY and FTSE 100 Jump

Nikkei 225 falls as Tokyo cases rise

Asian stocks are mixed today as traders reflect on the mixed corporate earnings and the rising number of coronavirus cases. In Japan, the Nikkei 225 index declined by more than 0.15% as Tokyo reported more than 370 new cases. Suzuki Motors, Nomura, Tosoh, and Yahoo Japan are the best-performing stocks in the index today. Isitan Mitsukoshi and Tokyo gas are the main laggard. The Nikkei 225 index is trading at ¥22,350.

Hang Seng spikes after government allows restaurants to open

In Hong Kong, the Hang Seng index is up by about 0.75% today as the government reversed an earlier ban on restaurant openings. Investors area also reacting to news that the local Legco elections may be postponed by a year, which increases the likelihood of stability. The Hang Seng is trading at $25,070, wit the best-performing stocks being New World, CSPC Pharma, AAC Technologies, and HK & China Gas.

Hang Seng and Nikkei 225
Nikkei 225 and Hang Seng

Dow Jones futures wait for Apple, Google and Amazon earnings

In the United States, futures tied to the Dow Jones, S&P 500, and Nasdaq are in the red as traders wait for corporate earnings from Apple, Amazon, Google, Procter & Gamble, and Mastercard. In total, these firms are worth more than $3 trillion and are among the leading constituents of the three indices. The results will come a day after the CEOs of the three tech giants defended their business practices in congress. They will also come a day after other giants like Facebook, PayPal, Shopify, and Qualcomm released their earnings.

Dow Jones
Dow Jones, Nasdaq, S&P 500Dow Jones, Nasdaq, S&P 500

DAX Index falls as Volkswagen slashes dividends

In Europe, futures are mixed, with the DAX index falling by more than 0.42%. That is mostly because of Volkswagen, which announced that it was slashing its dividends because of the weak performance in the second quarter. Its total vehicle deliveries declined by 27%. DAX index futures are trading at €12,818.

FTSE 100 and CAC 40 waits for key earnings

Meanwhile, futures tied to the CAC 40 and FTSE 100 are up slightly as investors react to corporate earnings. Earlier today, Credit Suisse said that its net profit increased by 24% to 1.31 billion Swiss franc. It also set aside 568 million franc to deal with potential loan losses. At Standard Chartered, pre-tax profit dropped to $1.63 billion, which was higher than the expected $1.53 billion. Other key earnings to watch today will be from Royal Dutch Shell, Lloyds Bank, L’Oreal, Linde, Total, Air Liquide, and Christian Dior, among others.

FTSE 100 and CAC 40 futures are trading at £6,116 and 4,965, respectively.

DAX Index, FTSE 100, CAC 40
DAX Index, FTSE 100, and CAC 40

US dollar index gains after dovish Fed

The US dollar index is up slightly during the Asian session as traders react to the Fed interest rate decision. As was widely expected, the bank left interest unchanged and warned that the economy was facing unprecedented risks. Later today, the BLS will release the preliminary second quarter GDP data and initial jobless claims numbers.

The US dollar index is trading at $93.50.

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US dollar index forecast

US dollar index

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