Morning Bid Europe

A look at the day ahead in European and global markets

By Vidya Ranganthan, Editor, Finance and Markets Breaking News

The steady stream of bad news from banks continues to cast a pall over markets this week, even as global tech giants surprise investors by beating earnings estimates.

Spain’s Santander (SAN.MC) dragged European stocks down on Tuesday. UBS Group (UBSG.S) fell after setting aside more money to provide for toxic mortgages, as part of its merger with fallen rival Credit Suisse (CSGN.S). That makes investors wary of such provisions at the likes of HSBC (HSBA.L), Lloyds (LLOY.L) and NatWest Group (NWG.L), all of which are due to report earnings in the coming weeks.

A TV presenter reports from the German stock exchange as the German share price index DAX graph is shown on a screen in Frankfurt, Germany, April 25, 2023. REUTERS/Staff

Across the Atlantic, First Republic Bank’s (FRC.N) plunging deposits and tumbling shares are rippling through the U.S. regional banking sector.

U.S. recession fears have also resurfaced after consumer confidence hit a nine-month low, alongside some weak earnings.

In a week packed with tech sector earnings, the focus moves from artificial intelligence to advertising revenues as Facebook-parent Meta Platforms (META.O) and streaming device maker Roku Inc (ROKU.O) report. Microsoft Corp (MSFT.O) earnings beat came after hours on Tuesday.

In other news, EU industry chief Thierry Breton identified five Alphabet (GOOGL.O) subsidiaries, two Meta units, two Microsoft businesses, Twitter and Alibaba’s (9988.HK) AliExpress among 19 companies subject to landmark EU online content rules known as the Digital Services Act (DSA).

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Key developments that could influence markets on Wednesday:

U.S. durable goods orders, Germany and France consumer confidence
Earnings: Meta Platforms, Boeing, GSK, Deutsche Boerse, Roku Inc

Graphics are produced by Reuters.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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