Europe stocks open higher
European stocks were cautiously higher early Thursday, with the Stoxx 600 index up 0.26% at 9:20 a.m. in London and sectors trading mixed.
Major bourses climbed, with France’s CAC 40 and the U.K.’s FTSE 100 both up 0.5%, while Germany’s DAX was up 0.1%.
Asia airline stocks gain as oil prices decline more than 3%
Airline stocks in Asia soared as oil prices sunk more than 3%, due to higher-than-expected U.S. inventory.
South Korean carrier Asiana Airlines led Asian airlines, up almost 4%, while counterpart Korean Air posted a 3.23% gain.
Australian flag carrier Qantas was up almost 3.8%, while Japan’s ANA and Japan Airlines climbed 1.53% and 2.8%, respectively.
Other airlines posted smaller gains, such as Cathay Pacific and Singapore Airlines, which were up 1% and 0.48%, respectively.
U.S. acknowledges Japan and South Korea’s ‘serious concerns’ on currency
The U.S. acknowledged Japan and South Korea’s “serious concerns” over the recent sharp depreciation in both the yen and the won. All three sides agreed to “consult closely on foreign exchange market developments.”
This comes after the first trilateral meeting between the top finance officials of the three countries.
US Secretary of Treasury Janet Yellen (C) meets with Japan’s Finance Minister Shun’ichi Suzuki (L) and Korea’s Economy Minister Choi Sang-mok at the Treasury Department in Washington, DC, on April 17, 2024.
Jim Watson | AFP | Getty Images
The Japanese yen recently reached its weakest level against the U.S. dollar in 34 years, and is currently trading at 154.26.
The South Korean won has also reached its weakest level against the greenback in about 18 months, currently trading at 1,377.11.
Morgan Stanley, HSBC cutting Asia investment banking jobs this week: Reuters
Morgan Stanley and HSBC are cutting dozens of investment banking jobs in the Asia-Pacific region this week, according to a Reuters report.
Citing sources, Reuters said this comes as the two banks ramp up cost-cutting, with weaker deal-making and sluggish markets in China and Hong Kong weighing on business prospects.
Morgan Stanley is cutting at least 50 investment banking jobs in the region starting this week, according to the report, affecting around 13% of its Asia investment banking workforce of 400.
HSBC reportedly started layoffs on Tuesday, and around 30 dealmakers are expected to leave the company.
Nasdaq Composite is on track for longest weekly losing streak since December 2022
It’s only Wednesday, but the Nasdaq Composite is already pacing for a 3% decline this week – and its fourth weekly decline.
If the tech-heavy index ends the week in the red, it’ll mark the longest weekly losing streak for the Nasdaq since December 2022.
A strong earnings season can safeguard equities from higher interest rates, Barclays says
A strong slate of first-quarter earnings can serve to defend markets from high interest rates, according to Barclays.
“We think earnings can still backstop equities against higher rates,” analyst Emmanuel Cau wrote on Wednesday. “Much lowered Q1 estimates offer room for beats and pullback has reduced froth; so long as improving activity data keep an FY24 earnings recovery on track, buy the dip may work.”
However, “re-rating leaves little margin for error,” Cau added.
Stock futures are little changed on Wednesday
Stock futures were little changed on Wednesday after the S&P 500 suffered its fourth-straight losing session.
Futures tied to the broad market index ticked up 0.02%, while Nasdaq 100 futures added 0.1%. Dow Jones Industrial Average futures slipped 5 points, or 0.01%.
