PMI figures fail to lift markets as we await Microsoft earnings
|Strengthening PMI figures in the US and Europe have done little to help boost sentiment, as traders await the key Microsoft earnings report, says Joshua Mahony, senior market analyst at online trading platform IG.
Equities lose traction despite some encouraging PMI figures
“Equities find themselves in the red once again, as investors struggle to gauge whether todays set of mixed PMI surveys provide grounds for optimism or pessimism. Eurozone services brought the one notable area of outperformance, as the sector unexpectedly rose back into expansion territory. However, despite improved readings across both manufacturing and services sectors in the US, it is a case of good news is bad news as it eases pressure on the Fed to consider pivoting anytime soon. ”
Microsoft earnings due, with big tech expected to see demand suffer
“Microsoft earnings provide the big corporate story of the day, with investors and traders alike expecting to see the giant lose traction on both earnings and profit-front. The decision to slash 10,000 jobs does highlight a bloated business which had grown its workforce by a whopping 77,000 since the beginning of the pandemic (+47%). Today’s Microsoft earnings report is expected to highlight the need to bring costs under control, as rising interest rates and recession fears bring concerns that demand will collapse over the course of 2023. ”
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