# Markets mixed as tech boosts US stock futures, Europe dips Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Markets Mixed as Tech Boosts US Stock Futures, Europe Dips Meta Description: Get the latest on global stock markets as tech stocks lift US stock futures, while Europe faces challenges. Stay updated with Reuters for all market news. URL: https://financedigest.com/markets-mixed-as-tech-boosts-us-stock-futures-europe-dipshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-26t082457z1lynxmpej3p0bprtroptp4europe-stocks-1736814094435-compressed.jpg) # Markets mixed as tech boosts US stock futures, Europe dips By Naomi Rovnick LONDON (Reuters) – Global stock markets were mixed on Wednesday as recession fears and banking sector strain weighed on European stocks and the dollar while Wall Street stock futures firmed on bullish updates from Microsoft and Google parent Alphabet. Europe’s STOXX 600 share index fell 0.8% as regional banking stocks dropped by the same amount. MSCI’s broad index of [global stocks](https://www.financedigest.com/stocks-tumble-globally-on-raft-of-economic-political-worries.html "Stocks tumble globally on raft of economic, political worries") was steady, after Asian markets outside of Japan closed higher in line with rising Wall Street futures. The dollar index, which measures the currency against other majors, fell 0.6% in a move that pushed up [sterling and the euro](https://www.financedigest.com/sterling-gains-vs-euro-after-sausage-war-ceasefire.html "Sterling gains vs euro after ‘sausage war’ ceasefire"). Shares in troubled San Francisco-based First Republic Bank [hit a record](https://www.financedigest.com/uk-inflation-hits-40-year-record-highest-in-g7.html "UK inflation hits 40-year record, highest in G7") low on Tuesday as it disclosed that deposits had plunged by just over $100 billion, reviving fears for smaller U.S. lenders that began with [Silicon Valley Bank’s](https://www.financedigest.com/what-banks-can-learn-from-silicon-valley.html "What banks can learn from Silicon Valley") collapse in March. But ahead of quarterly results from Facebook parent Meta Platforms later in the day, Nasdaq [futures were up 1.2% on Wednesday morning in Europe and S&P 500 futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") 0.4%. Microsoft rose 8% in U.S. pre-market dealings after its [quarterly results](https://www.financedigest.com/aon-reports-first-quarter-2018-results.html "Aon Reports First Quarter 2018 Results"), issued after the U.S. [stock market](https://www.financedigest.com/the-secret-to-stock-market-success.html "The Secret to Stock Market Success") closed on Tuesday, beat analyst forecasts. A $70 billion share buyback [announced by Google parent](https://www.financedigest.com/impact-com-announces-new-global-parental-leave-policy.html "impact.com announces new global parental leave policy") Alphabet also looked set to insulate the mood on Wall Street from banking sector troubles. U.S. and European [financial conditions have tightened significantly since the Federal Reserve and European Central Bank](https://www.financedigest.com/customer-engagement-trends-that-will-rule-banking-and-financial-services-in-2021.html "Customer Engagement Trends that Will Rule Banking and Financial Services in 2021") embarked on their most aggressive interest rate-hiking cycles for decades last year to battle soaring inflation. This has dented confidence towards loan-dependent sectors such as real estate, and [raised questions over how global banks](https://www.financedigest.com/bank-of-england-raises-rates-in-8-1-vote.html "Bank of England raises rates in 8-1 vote") will deal with defaults. Deposit flight from U.S. [banks has prompted investors to dial down profit expectations for the global banking sector, with banks under pressure to raise interest rates on savings accounts to keep hold of customers’](https://www.financedigest.com/canadian-banks-fighting-brokers-back-for-customers.html "Canadian Banks Fighting Brokers Back For Customers") money. [“Banks around the world](https://www.financedigest.com/in-a-digital-world-what-is-the-future-for-community-banking.html "In a Digital World, What is the Future for Community Banking?") want to make sure their deposits will stay,” said Jason Da Silva, director of global investment strategy at Arbuthnot Latham in London. So there’s an expectation in the [market that banks’](https://www.financedigest.com/swiss-bank-ubp-returns-to-chinese-markets.html "Swiss bank UBP returns to Chinese markets") earnings and net interest margins have probably peaked. The benchmark S&P 500 and Nasdaq indexes both fell heavily on Tuesday after weak consumer confidence data, while bonds rallied sharply and interest rate [futures markets](https://www.financedigest.com/polysorbate-40-market-2022-scope-of-current-and-future-industry-2027.html "Polysorbate 40 Market 2022 | Scope of Current and Future Industry 2027") priced in a higher chance of Fed cuts later in the year. U.S. 10-year yields fell nearly 12 basis points (bps) on Tuesday, their sharpest drop in more than a month, while steadying about 2 basis points higher at 3.398% on Wednesday morning in Europe. Germany’s 10-year yield slipped 2 bps to 2.375% after dropping 11 bps in the previous session. Complicating the [outlook for bond markets](https://www.financedigest.com/ancient-and-specialty-grain-flour-market-outlook-current-and-future-industry-landscape-analysis-2029.html "Ancient and Specialty Grain Flour Market Outlook, Current and Future Industry Landscape Analysis 2029"), the cost of insuring against the U.S. government defaulting on its debt rose further on Wednesday after Treasury Secretary Janet Yellen warned that a failure by Congress to lift the debt ceiling would [trigger economic](https://www.financedigest.com/putin-says-west-is-triggering-a-global-economic-crisis.html "Putin says West is triggering a global economic crisis") catastrophe. Spreads on five-year U.S. [credit default](https://www.financedigest.com/banks-recover-75-of-defaulted-debt-owed-by-large-corporate-borrowers-finds-new-global-credit-data-report.html "Banks recover 75% of defaulted debt owed by large corporate borrowers, finds new Global Credit Data report") swaps widened to 62 bps, the highest since 2011. “The chances of U.S. default remain very, very slim,” said Guy Miller, chief market strategist at [Zurich Insurance](https://www.financedigest.com/zurich-insurance-h1-operating-profit-leaps-60-as-covid-impact-wanes.html "Zurich Insurance H1 operating profit leaps 60% as COVID impact wanes") Group. However, it just takes the probabilities to [rise above zero and it becomes a real issue from an investor](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors") perspective. In currency markets, the euro gained 0.8% to $1.1062. [Sterling gained](https://www.financedigest.com/sterling-erases-post-boe-gains-as-omicron-weighs.html "Sterling erases post-BoE gains as Omicron weighs") 0.6% to $1.249. The yen was steady at 133.4 per [dollar ahead](https://www.financedigest.com/dollar-dips-ahead-of-powell-speech.html "Dollar dips ahead of Powell speech") of the Bank of Japan’s meeting this week, as markets await clues from new governor Kazuo Ueda about whether he might ditch policies that have suppressed domestic bond yields and the yen. Brent crude futures fell a further 0.3% to $80.56 a barrel, having dropped almost 4% overnight with the risk-averse mood. Gold was pinned just below $2,000 an ounce. (Reporting by Naomi Rovnick; additional reporting by Tom Westbrook and Dhara Ransinghe; editing by Sam Holmes, Bernadette Baum, Toby Chopra and Mark Heinrich) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---