According to RTTNews, European equities are expected to open slightly lower on Thursday as U.S. technology firms announced substantial capital expenditures, raising fresh worries about the returns on those investments.

Alphabet and Tesla both disclosed negative free cash flow in their latest quarterly results, prompting investors to overlook their robust revenue growth.

IBM’s Q2 2026 earnings and revenue fell short of Wall Street forecasts, and the company revised its full-year growth outlook downward, highlighting continued difficulties amid the AI surge.

Intel is scheduled to release its Q2 earnings after the U.S. market close today; analysts project revenue of $14.42 billion, marking the fastest growth rate in six years.

Rising Middle East tensions could further unsettle investors, following Yemen’s Iran‑aligned Houthi rebels’ claim of striking two Saudi oil tankers in the Red Sea.

Iran’s Foreign Minister Syed Abbas Araghchi announced that Tehran would adopt an ‘eye for an eye’ defense posture after the United States conducted its 12th consecutive night of strikes against Iran.

The escalation has driven WTI crude toward $89 per barrel, while Brent crude has risen for a fifth successive day, surpassing $96 per barrel.

Asian markets posted broad gains, whereas U.S. equity futures slipped following the release of earnings from major technology companies.

The U.S. dollar edged lower modestly ahead of next week’s Federal Reserve meeting, as traders anticipate no change in policy rates.

Gold slipped to $4,124 per ounce, retreating from a two‑week high as West Asian tensions persisted.

Overnight, U.S. equities drifted lower as investors weighed escalating Middle East tensions and awaited key technology earnings for guidance.

With the U.S. military completing its 11th consecutive day of strikes on Iran, Secretary of State Marco Rubio said the United States remains open to a diplomatic settlement, though Iran is not serious about talks.

In a Truth Social post, President Donald Trump warned that he would bomb and destroy an Iranian bridge or power plant whenever Iran attacks a ship in the Strait of Hormuz.

The tech‑heavy Nasdaq Composite fell 0.6 percent as short‑term Treasury yields rose to 17‑week highs and oil prices added another 3 percent; the S&P 500 slipped 0.1 percent and the Dow eased slightly lower.

European equities posted gains on Wednesday, supported by encouraging corporate earnings and soft U.K. inflation data that bolstered investor sentiment.

The pan‑European STOXX 600 rose 0.6 percent, while the German DAX gained 0.6 percent, France’s CAC 40 added 0.9 percent, and the U.K.’s FTSE 100 surged 1.2 percent.

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