UK inflation recedes, European stock markets see an uptick
During a recent IT call, it was reported that the UK's inflation rate, known as the Consumer Price Index (CPI), was slightly weaker than expected. This news had a small impact on European stock markets, causing them to increase slightly.
Additionally, there was news about Lyft, a popular ride-hailing company, announcing its earnings. Initially, this caused Lyft's stock to rise by a whopping 66%, but later it dropped by 30%, ending the session with a 12% gain. These sudden changes in stock prices led to increased volatility in the markets, but things settled down afterwards.
Moving on to specific markets, in London, there was a significant turnaround, with gains observed in the 30-minute candle chart. Similarly, European and French markets also experienced small increases after declining in the previous session. In Asia-Pacific, the Nikkei, a Japanese stock market index, reached its highest closing point in 34 years. Meanwhile, the Hong Kong markets saw even stronger gains compared to other global markets.
On Wall Street, there was a positive sign with a green candlestick after previous losses. However, the technology sector experienced its second consecutive day of losses. Despite these fluctuations, the overall trend in the markets remained positive, with a rising line of support indicating higher highs and a record high seen earlier in the week. As a result, there is an increased expectation that the US Federal Reserve may cut interest rates in June.
Corporate news was also in focus. Dunelm, a company specializing in home furnishings, reported strong sales growth. Heineken, the famous beer company, exceeded analysts' forecasts for its full operating profit. However, its organic revenue was slightly lower than expected. Delivery Hero, a food delivery company, faced challenges with thin profit margins, affecting its overall value.
On a positive note, Airbnb reported better-than-expected revenue for the fourth quarter. Cisco Systems was expected to release its earnings later in the day. However, Kraft Heinz's earnings were projected to fall by 9%, and its revenue was expected to decline by 5% in the fourth quarter. These declines were attributed to inflation and its impact on the company's products.
Finally, the rise in the value of the US dollar following the consumer price index (CPI) data caused a drop in the price of gold. Furthermore, ongoing geopolitical tensions, along with uncertainty regarding the Federal Reserve's interest rate decisions, influenced the price of oil.
