FT News Briefing Markets’ dove-coloured glasses
Feb 3, 2023
Tech giants face struggles as Apple reports disappointing earnings while Meta rebounds with strong revenue and buybacks. Despite central banks tightening monetary policy, equities soared. The European Central Bank and Bank of England both raised interest rates, yet market optimism persists amid slowing job growth. Join the discussion on how these dynamics reflect a fragile balance between inflation control and economic recovery.
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Tech Earnings Slump
- Big tech companies like Apple, Alphabet, and Amazon reported weak Q4 2022 earnings.
- This was due to supply chain issues, slowing digital ad growth, and reduced cloud spending.
Market Misinterpretation
- Markets reacted positively to central bank rate hikes, interpreting them as dovish.
- This is despite banks signaling further rate increases to combat inflation.
Cooling Jobs Market
- The Fed's hawkish stance might have cooled down the hot U.S. jobs market.
- Analysts predict slowed job growth for the sixth consecutive month in January.