European stock futures dropped as investors digested key earnings from major companies and after an unimpressive start to the results from the “Magnificent Seven” megacap technology firms.
Asian shares and US stock futures also fell after some of corporate America’s largest businesses including Tesla Inc. and Alphabet Inc. published results were seen as insufficient to justify the recent rally in global equities.
The yen gained for a third day before next week’s Bank of Japan meeting. Deutsche Bank AG suffered its first quarterly loss in four years as trading slowed and it booked a charge tied to a legacy issue at its Postbank retail unit.
On the flipside, BNP Paribas SA’s profit rose in the second quarter on surging equities trading revenue.
“The bar from investors after the runup we’ve seen in global equities year to date, investors are looking for opportunities to take some profit,” Eli Lee, chief investment strategist at Bank of Singapore Ltd., said on Bloomberg Television.
“Though we think tech earnings are going to be fairly resilient over the next few weeks, we may see some volatility in equity markets.”
