On Wednesday, there may be a flat to negative start for the Indian indices. Heavy selling in IT, FMCG, realty sectors on Tuesday dragged the indices down as they closed with a fall of around 1.25 per cent. Indices on Wall Street closed higher on Tuesday on stronger-than-expected corporate earnings, but cut global economic growth estimates, high inflation, the Russia-Ukraine war continued to scare market investors. Growth concerns weighed on oil markets on Tuesday, reversing recent gains in the commodity amid some concerns about global supply. In Asia, stocks rose in Japan and Australia, while South Korea, Hong Kong and Shanghai declined.
Earnings boost Wall Street while growth fears sink oil
US stocks rose on Tuesday on stronger-than-expected corporate earnings, but bleak forecasts on global economic growth raised bond yields and dragged oil down.
The tech-heavy Nasdaq led the way in gains in US markets, as many corporations began reporting stronger-than-expected earnings. Those reports helped investors shrug off warnings of global forecasts of a slowdown in economic growth, which weighed on bonds and other sectors such as oil.
Of the 49 companies in the S&P 500 that reported quarterly earnings on Tuesday, nearly 80% topped profit estimates, according to Refinitiv data.
The Dow Jones Industrial Average gained 1.45%, the S&P 500 was up 1.61% and the Nasdaq Composite gained 2.15%.
The MSCI World Equity Index, which tracks stocks in 45 countries, was up 0.81%.
The increase came even as global economic bodies began to warn on economic growth. The World Bank and the International Monetary Fund both slashed their global economic outlook for 2022 by nearly a full percentage point, citing the turmoil created by Russia’s invasion of Ukraine and the fight against inflation around the world.
The current battle by central banks around the world to curb inflation continued to boost bond markets, where US Treasury yields continued to move upwards.
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