April 25, 2023
US Stocks Fall After Mixed Earnings; Bonds Rise: Markets Wrap
US equities declined along with European stocks as investors scrutinized a flood of earnings reports for clues on the outlook for corporate profits amid high interest rates and slowing economic growth.
The S&P 500 and the Nasdaq 100 slipped, with First Republic Bank plunging 27% after results late Monday shook investor confidence. Other results were mixed, with General Motors Co. and PepsiCo Inc. beating expectations, while United Parcel Service Inc. sank as guidance disappointed. Tech heavyweights including Microsoft Corp. and Alphabet Inc. will report later Tuesday amid speculation the Federal Reserve is nearing the end of its tightening cycle.
Eastern Europe Is Borrowing Like Never Before as War’s Financial Toll Piles Up
Across eastern Europe, the financial toll of Vladimir Putin’s 14-month-old war on Ukraine is piling up. Energy subsidies are being doled out, armies built up and refugees housed, schooled and fed.
To help pay those bills, Ukraine’s neighbors are tapping international debt markets like never before.
China’s Politburo Likely to Shift Focus From Stimulus to Reforms
With China’s economic recovery well on track, top leaders will likely turn their policy focus now to boosting business confidence, increasing jobs and strengthening the property market without adding extra stimulus.
The April meeting of the Communist Party’s Politburo, the top decision-making body headed by President Xi Jinping, typically focuses on the economy and sets the tone for policies in coming months. There isn’t an exact date for the meeting, but it’s likely to take place this week.
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