Yazar: Geoffrey Smith
Investing.com – Amazon (NASDAQ 🙂 concludes the season with an eye-catching earnings report for internet platform companies, but the EU will dampen enthusiasm with a new antitrust decision against Apple. Chinese regulators are also putting pressure on their own Internet giants. The euro zone went into recession as expected in the first quarter, and stocks and oil are consolidating as their short-term growth potential is exhausted. Personal income and spending data and consumer sentiment figures will be released by the University of Michigan.
Here’s what you need to know in financial markets on Friday, April 30th.
1. Amazon ends the season with high performance for Big Technologies
Amazon ended a glorious season for Internet platform companies, sharing a net profit of over $ 8 billion for the first quarter (tripling the previous year’s results). Similar factors were at work: Cloud revenue increased by 32%, while the company’s advertising business increased by nearly 70%. Amazon shares rose 2.4% to a record high.
Results from Big Tech names this week showed how the dominance of the biggest platform companies – Apple (NASDAQ :), Amazon, Facebook (NASDAQ :), Google (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 – is intensifying. Regulatory backlash continues to escalate as the EU ruled against Apple policy on Friday for abusing its dominant position.
Conversely, more niche players in the same domain had difficulty competing: Pinterest (NYSE 🙂 and eBay (NASDAQ 🙂 turned upside down after sharing the results, and Twitter was disappointed with its earnings report. Its shares fell 11% to the lowest in nearly three months.
2.China increases Internet printing
Chinese regulators have increased pressure on the country’s largest Internet companies, introducing stringent new rules specifically targeting financial services units.
Companies including JD (NASDAQ :).com, Meituan, Xioami and Didi Chuxing have been ordered to set up financial holding companies that will be subject to net capital requirements, which reduces their profitability.
This move mimics the recent actions taken against Alibaba’s (NYSE 🙂 subsidiary Ant Group, and also comes after Tencent’s $ 1.6 billion fine this week for past antitrust violations. All of the Chinese stock indices fell relatively slightly.
3.US exchanges will see some profit realization at the opening
US stocks will open low, pulling from record levels with profit taking as another strong month ends.
While the earning season has largely met very high expectations, poor results and awareness of high valuations such as Twitter and Pinterest make it difficult to earn more, at least in the short term.
It fell by 96 points and fell by 0.4% and 0.5%.
In addition to the personal consumption expenditures price index, personal income and expenditure data for March leads the data calendar. The University of Michigan consumer sentiment index is also on the calendar.
4.Euro zone is again in recession zone
Official data confirmed that the eurozone economy is in recession again. First quarter GDP data fell 0.6% and 1.8% year-on-year. The figures, stigmatized by the slow start of the vaccination campaign with the quarantines that have been in effect for a long time, are still slightly better than expected.
The euro zone inflation rate increased from 1.3% in March to 1.6% in April. A similar pattern of base effects brought the core inflation rate closer to the ECB’s medium-term target. However, excluding food and energy prices rose only 0.8% in line with the bank’s weak fundamental dynamics assessment.
The euro, which climbed to $ 1,2135 on Thursday, fell back below $ 1.21, while Germany’s 10-year bond yield fell again below -0.20%. However, there were developments regarding the epidemic.
Palladium sets new record while oil and copper struggle
Oil prices also fell from seven-week highs, reflecting the slight decline in stocks.
prices fell 1.4% to $ 64.07, while dropping 1.2% to $ 67.23.
It also failed to stay above $ 10,000 in the commodity field. Many speculative players seemed to have decided that this level is the profit-making level.
However, it does not stop and is watching over $ 3,000 for the first time.