Asia
Markets in Asia-Pacific resumed trading after the May Day pause in a downbeat mood and mirrored weakness overnight on the S&P 500 and Dow Jones.
China’s Caixin PMI for April was slightly better than forecast, but with the index at 51.1, there was little change from the previous month.
The dollar maintained its strong run against the Japanese yen, approaching the 110 level seen at the start of the year. But this was not enough to lift Japanese equities out of the doldrums on Tuesday, despite a rise in the services index month on month.
Europe
Returning from the May Day holiday, eurozone GDP came into focus for the region’s investors. As expected, the currency Bloc grew by 0.4% quarter on quarter and 2.5% year on year. Germany’s Dax was the biggest gainer in percentage terms among the largest markets.
UK markets continued their positive momentum so far this week. After breaking through 7,500 points last week, the FTSE 100 added nearly 50 points to 7,570 on Wednesday. Russian steel firm Evraz (EVR) is the biggest riser on the blue-chip index this morning.
North America
Apple (AAPL) beat profit and revenue forecasts on Tuesday night but iPhone sales, while healthy, were still below analyst estimates. The company’s shares were buoyed both during and after market hours as the iPhone X maker announced a $100 billion share buyback programme and raised its dividend.
Today investors will focus on Tesla (TSLA), which reports after the market closes. Reportedly the most shorted stock in the US, the company has challenges persuading its once-bullish investors that the company is managing its resources well. Owner and founder Elon Musk says the company will turn a profit this year, but it has come under fire for capital spending and is facing numerous lawsuits.
The Federal Reserve is not expected to raise interest rates today and the dollar is softening against the pound and euro in anticipation of the announcement.
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