Morning Brief: Nikkei 225 and DXY slide while strong tech pushes up DJ Futures


Panasonic leads Nikkei dip

Traders are reflecting today on upbeat tech earnings coming out of the U.S. as well as fresh economic data in Asia. In Japan, the Nikkei 225 index is down by 2.34% after more than 400 new Corona cases were reported in Tokyo. The index ignored upbeat data from Japan, which showed that industrial output across the country expanded for the first time in five months while unemployment rates eased. The worst performers in the Nikkei 225 were Advantest, Panasonic and Nisshinbo, whose shares all fell by more than 13%. The index is trading at Y21,884, the lowest it has been since June.

Nikkei 225
Nikkei 225 and Hang Seng

DAX index and CAC 40 slide ahead of key earnings

Among European futures the focus remains firmly on corporate earnings. The DAX index was down by 1.48% while the FTSE 100 and Stoxx 50 climbed slightly, by 0.40% and 0.13%, respectively. Meanwhile, the CAC 40 index fell by 1.45%.

Investor focus remains largely on key financial results from companies including Merck, DSV, Christian Dior, Luxottica, Vinci, BNP Paribas, London Stock Exchange, Johnson Controls, Nokia and NatWest. Yesterday, Volkswagen reported relatively weak results that included an announcement to slash its dividend significantly. The DAX Index, FTSE 100 and CAC 40 are trading at €12,335, €5,965, and €4,883, respectively.

DAX Index
DAX Index, CAC 40, and FTSE 100

Dow Jones, Nasdaq 100 and S&P respond to strong tech earnings

US futures are in the green as traders took note of strong earnings from multiple technology giants. Futures tied to the Dow Jones, S&P 500 and Nasdaq are up by 0.15%, 0.20%, and 0.80%, respectively.

Apple revealed yesterday that its revenue has climbed to $59.7 billion, versus forecasts of a 3% decline to $52.1 billion. As reported yesterday in our Apple earnings preview, the company has a long history of beating estimates. Amazon reported its earnings too, with revenues jumping to $88.91 billion and earnings per share rising to $10.30. The same story for Facebook: the social media giant reported strong user growth and higher revenues. Google-owner Alphabet, however, revealed a drop in revenues. Dow Jones and S&P 500 are trading at $26,246 and $3253, respectively.

Dow Jones, Nasdaq 100, and S&P 500
Dow Jones, Nasdaq 100, and S&P 500

U.S. dollar index (DXY) slides after weak US data

The U.S. dollar index slumped as traders reacted to weak U.S. economic data, which showed that its economy contracted by a record 32.9% during the second quarter of this year. Moreover, the number of Americans signing up for unemployment benefits was up for the second consecutive month. China, however, reported very different figures: freshly-released manufacturing and non-manufacturing data showed that economic heavyweight is making a strong recovery. The manufacturing PMI data from China Logistics rose to 51.1 this month.

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US dollar index vs euro index

US dollar index (DXY) vs Euro index (EXY
US dollar index (DXY) vs Euro index (EXY

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