Stocks sag as disappointing earnings compound interest-rate headache

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LONDON, Oct 25 — Stocks wobbled today after the latest round of earnings prompted concern among investors over the economic outlook, as even Google parent Alphabet GOOGL.O...

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Over in Europe, the STOXX 600 .STOXX fell 0.5 per cent, after a near-50 per cent slump in shares of WorldlineWLN.PA after the French payments company cut its payment targets, as economic slowdown hit some of its key markets. Mega cap tech companies have been a huge success story for equity investors in 2023. Yet shares in Alphabet GOOGL.O fell 6.9 per cent in pre-market trading after reporting another slowdown in its cloud business, while Microsoft MSFT.O shares rose more than 3 per cent. Nasdaq 100 futures NQc1 fell 0.5 per cent, while S&P e-mini futures ESc1 dropped 0.3 per cent.

“Government expenditure will help the economy to stabilise further and strengthen growth in the fourth quarter,” said Steven Leung, executive director of institutional sales at broker UOB Kay Hian in Hong Kong. The annual pace of inflation in Australia slowed in the third quarter, but the Reserve Bank of Australia’s preferred core measure rose 1.2 per cent to top forecasts of 1.1 per cent.

 

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