SUPERNEWS

Macro

Nikkei & FTSE Up Amid Easing Tensions; Gold Drops, Dollar Rises

Mixed US market response to Netflix's Q2 warning; Asia ex-China, Europe stocks rise, gold falls, dollar strengthens amid easing Middle East tensions.

By Athena Xu

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4/22, 07:24 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Netflix, Inc.
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Key Takeaway

  • Asian and European markets mostly rose, with Japan's Nikkei 225 up 0.99% and the UK's FTSE 100 higher by 1.46%, amid easing Middle East conflict fears.
  • Gold fell sharply by 1.66% to $2,373.75, while the U.S. dollar gained slightly, indicating a shift towards riskier assets.
  • Netflix's Q1 performance exceeded forecasts but warned of a potential Q2 subscriber dip; Dow Jones gained 0.56%, while Nasdaq fell by 2.05%.

Mixed US Market Close Amid Netflix Warning

On Friday, April 19th, the U.S. stock markets exhibited mixed results, primarily influenced by Netflix's performance. Despite Netflix's Q1 earnings, revenue, and subscriber count surpassing forecasts, the company's warning of a potential dip in Q2 subscribers due to seasonality and a lower-than-expected revenue guidance dampened investor sentiment. However, its EPS outlook remained higher than anticipated, offering a silver lining. The Dow Jones Industrial Average saw a gain of 0.56%, closing at 37,986.40, while the S&P 500 and Nasdaq Composite experienced declines of 0.88% and 2.05%, respectively.

Global Markets Respond to Economic Indicators

In the wake of the U.S. market's mixed close, global markets showed varied responses. Asian markets, including Japan's Nikkei 225 and Hong Kong's Hang Seng Index, posted gains, driven by sectors such as Mining, Chemical, Petroleum & Plastic, and Healthcare. Conversely, China's Shanghai Composite and Shenzhen CSI 300 faced declines amidst ongoing geopolitical tensions and trade restrictions. European markets, on the other hand, experienced an uptick, with the European STOXX 50, Germany's DAX, France's CAC, and the U.K.'s FTSE 100 all trading higher, buoyed by gains in retail and telecommunication shares.

Commodities and Forex Markets React

Commodity prices saw a notable shift, with Crude Oil WTI and Brent experiencing declines, attributed to easing tensions between Israel and Iran. Natural Gas and precious metals like Gold and Silver also faced downward pressure, while Copper prices edged higher. In the forex market, the U.S. dollar index saw a slight increase, and the USD/JPY rose, indicating a stronger dollar. However, the USD/AUD declined, reflecting the complex dynamics at play in currency markets amid global economic uncertainties and policy expectations.