US Earnings Disappoint, ASX 200 Holds Firm Amid Global Economic Developments
The past week saw US equity markets decline due to disappointing earnings results from Alphabet and Tesla. The ASX 200, however, managed to stay firm, closing near the 8800 level for the sixth consecutive week. Gains in energy, resources, and bank stocks helped offset falls in healthcare, IT, and consumer discretionary sectors.
Initial jobless claims in the US fell to 187,000, a nearly 60-year low, while China's central bank kept its loan prime rates unchanged at 3% and 3.5%. Japan's trade deficit widened, and headline inflation rose to 1.7%, with core inflation at 1.6%.
The UK labour market saw a surprise boost in employment, while the unemployment rate remained steady at 4.9%. Eurozone economic sentiment surged as the ZEW Index jumped to 23.4, outperforming expectations. The Australian economy reported a significant increase in employment, with the unemployment rate holding steady at 4.4%.
Oil prices surged 12.03%, reaching $91.62, while the US dollar index gained 0.62%. Bitcoin and gold saw marginal gains of 0.01% and 0.65%, respectively. The VIX volatility index eased to 18.69.