Wall Street struck new records as tech firms prepared to release their third quarter earnings

London (AFP) - US stock markets struck a fresh record on Monday as investors awaited earnings results from tech firms while European traders looked ahead to an ECB rate decision and UK budget later in the week.

Asian markets closed mixed following last week’s gains, with investors keeping a worried eye on a fresh Covid outbreak in China that could drag on the already stuttering economy.

Oil prices pressed higher, with Brent at a three-year high above $86 per barrel, while WTI rose above $85 for the first time since October 2014.

The latest gains for crude come after Saudi Arabia said OPEC and other major producers would be cautious in lifting output despite surging demand, warning that the pandemic still posed a threat to the outlook.

In foreign exchange, Turkey’s lira tumbled more than one percent to a record low against the dollar after President Recep Tayyip Erdogan called for the expulsion of ambassadors from 10 countries, including Germany and the United States, who had appealed for the release of a jailed civil society leader.

It later rebounded as hopes rose that Erdogan would back down.

- Earnings updates -

Long-running worries about inflation meanwhile continued to cast a shadow over trading, though a healthy batch of earnings has tempered those concerns and helped Wall Street scaled new summit last week.

Investors propelled the S&P 500 to a new intraday high during morning trading on Monday, and the Dow approached its record, in anticipation of earnings reports this week from US tech titans including Amazon, Apple, and Microsoft.

“After another decent week of gains US markets have picked up where they left off on Friday as attention turns to another big week of earnings announcements, starting with Facebook later this evening,” said market analyst Michael Hewson at CMC Markets UK.

The results and guidance of the tech firms will be closely followed for an idea about what impact supply chain snarls and rising prices are having on their bottom lines.

Their forward guidance will also be of interest as businesses contemplate tighter central bank monetary policies.

Meanwhile, HSBC bank on Monday posted bumper earnings and plans to buy back shares, which its London-listed shares rising 1.9 percent.

News that troubled China Evergrande had paid interest due on a bond before Saturday’s deadline provided a much-needed boost to market confidence, though it remains to be seen whether the property developer can meet obligations on other notes due before the end of the year.

Chinese markets also got some extra cheer from Evergrande saying it had resumed work on more than 10 projects.

But there were concerns about the property sector after reports that China plans to expand pilot property tax reforms as part of a drive against real estate speculation.

In currency trading, the euro dropped with data showing Germany’s business climate worsened in October for the fourth month in a row, as supply chain woes weighed on the country’s export-driven economy.

European Central Bank policymakers meet on Thursday, with markets hoping for hints on when the ECB may start raising interest rates or taper its massive pandemic-fuelled stimulus programme.

The British government releases on Wednesday is tax and spending plans in its annual budget announcement.

- Key figures around 1530 GMT -

New York - Dow: UP 0.1 percent at 35,719.72 points

London - FTSE 100: UP 0.3 percent at 7,222.82 (close)

Frankfurt - DAX: UP 0.4 percent at 15,599.23 (close)

Paris - CAC 40: DOWN 0.3 percent at 6,712.87 (close)

EURO STOXX 50: UP less than 0.1 percent at 4,192.11

Tokyo - Nikkei 225: DOWN 0.7 percent at 28,600.41 (close)

Hong Kong - Hang Seng Index: FLAT at 26,132.03 (close)

Shanghai - Composite: UP 0.8 percent at 3,609.86 (close)

Euro/dollar: DOWN at $1.1613 from $1.1648 at 2050 GMT on Friday

Pound/dollar: UP at $1.3776 from $1.3759

Euro/pound: DOWN at 84.31 pence from 84.70 pence

Dollar/yen: UP at 113.68 from 113.66 yen

Brent North Sea crude: UP 1.2 percent at $86.51 per barrel

West Texas Intermediate: UP 1.0 percent at $84.57 per barrel

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