World stocks showed a mixed performance on Wednesday following a decline in technology shares on Wall Street the previous day. Investors were eagerly awaiting chipmaker Nvidia's quarterly earnings report, which was expected to impact markets in Hong Kong, China, and Taiwan due to these regions contributing over 45% of Nvidia’s revenues in the third quarter.
Germany’s DAX and the CAC 40 in Paris both saw slight gains, while London's FTSE 100 experienced a decrease. Futures for the S&P 500 and the Dow Jones Industrial Average were up slightly.
HSBC Holdings reported record profit before tax for 2023, although it fell short of analysts’ expectations due to an impairment charge related to an investment in a Chinese bank. This news led to a decline in HSBC’s Hong Kong-listed shares.
Asian markets saw mixed results, with Hong Kong’s Hang Seng and Shanghai Composite posting gains, while Japan’s Nikkei 225 and Australia’s S&P/ASX 200 experienced losses. Japanese exports rose higher than expected in January, driven by strong demand for chip-making machinery in China.
South Korea’s Kospi also saw a slight decline. On Wall Street, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all fell, with technology stocks, particularly chip makers, being the main drag on the market.
Investors are now anticipating the first rate cut to come in June, later than previously expected. The upcoming release of the government's monthly report on personal consumption and expenses will provide further insight into inflation.
With a light week of economic news, investors are closely monitoring data on home sales and earnings reports. Analysts expect modest earnings growth for the fourth quarter and the current quarter.
In commodities trading, U.S. benchmark crude and Brent crude both experienced slight declines. The U.S. dollar strengthened against the Japanese yen and the euro.
