Market UpdatesAug 04, 20262 Min
Global market wrap: Asian stocks trade mixed even as Dow closes at record high; HSBC launches $1 billion buyback
We are back with quick updates on developments around global stock markets, commodities and companies that you shouldn’t miss today.
Asian equities were trading mixed on Tuesday, with all major markets witnessing a negative bias, even as the US markets posted a sharp rally in the overnight trade on Monday.
South Korea’s benchmark Kospi dropped 1.2% to 6,183, while Japan’s Nikkei 225 index slipped 0.6% to 63,354.
Hong Kong’s Hang Seng Index also slipped 0.5% to 25,882 on Tuesday, though China’s Shanghai Composite index inched up 0.2% to 3,816.
Singapore’s Straits Times rose 0.3% as well to 5,627 on Tuesday, along with Australia’s S&P/ASX 200 that jumped 1.3% to 9,134.
US stock futures rose during after-market hours after a blockbuster regular session. S&P 500 futures were up 0.2%, Nasdaq 100 futures gained 0.4%, while futures tied to the Dow rose 0.3%.
On Monday, the Dow Jones Industrial Average closed at a record high after jumping 1.3%. The S&P 500 zoomed 1.5%, while the Nasdaq Composite advanced 2.1%.
Oil prices moved higher on Tuesday after correcting almost 5% in the previous session. The US crude oil futures for July delivery gained 1% to $81.16 per barrel by 0039 EDT, while Brent futures for August delivery jumped 1.4% to $84.90 per barrel.
Gold prices rose on Tuesday as inflation concerns cooled off after oil stabilized. Spot gold was up 0.2% to $4,062 per ounce by 0439 GMT on Friday, while US gold futures for August delivery rose 0.7% to $4,118 per ounce.
Here’s a look at the key developments of the day:
Palantir Tech shares surge 12% as revenue nearly doubles
Artificial intelligence company Palantir Technologies Inc., which is widely known for selling its software to the US government and military, on Monday announced that its second-quarter earnings beat estimates as commercial revenue more than doubled from a year ago.
The company’s revenue climbed 93% to $1.94 billion from about $1 billion a year ago. Net income stood at $1.07 billion compared to about $329 million in the year-ago quarter.
The company also lifted its full-year revenue guidance to between $8.15 billion and $8.16 billion from prior guidance of $7.65 billion to $7.66 billion. After the earnings announcement, Palantir shares surged 12%.
HSBC launches $1 billion share buyback
HSBC Holdings on Tuesday announced a share buyback of up to $1 billion after the second-quarter net profit beat estimates.
The London-based bank said net profit jumped 68% from a year earlier to $7.69 billion for the three months ended June on the back of higher net interest income and wealth management fees.
HSBC also informed that the share buyback is expected to be completed before its third-quarter results.
Snap’s stock jumps 8% on earnings beat and strong sales forecast
Snap Inc., parent firm of visual messaging service Snapchat, on Monday reported better-than-expected revenue and earnings for the second quarter. After the earnings, the technology company’s stock jumped about 8% in extended trading hours.
Snap’s revenue in the second quarter rose 19% from $1.34 billion a year earlier, while net loss narrowed to $164 million from $262.6 million a year ago. The company’s CEO Evan Spiegel said in an investor letter that the company “saw improving momentum in our advertising business”.
Australia’s Qantas Airways to exit Jetstar Japan
Australia’s Qantas Airways said on Tuesday that budget carrier Jetstar Japan would buy back its 33.32% stake for $52.11 million.
As part of the deal, Jetstar Japan will buy back Qantas’ minority stake and bring in the Development Bank of Japan as a shareholder. This will pave the way for the budget airline to drop the Jetstar name and move toward Japanese ownership.
