European stocks started the day on a slightly lower note, with the Stoxx 600 index down 0.2% in early trading in London. The U.K.’s FTSE 100 managed to climb 0.5%, breaking a five-day winning streak, while France’s CAC 40 was down 0.2% and Germany’s DAX dropped 0.5%.
In Asia, the Nikkei 225 index fell 2.1% in afternoon trading, leading declines among Asian stocks. The broader Topix index also dropped 1.64%. Investors are eagerly awaiting the Bank of Japan’s monetary policy decision on Friday, looking for insights into the inflation outlook amidst a weakening yen, higher oil prices, and strong wage growth.
Meanwhile, South Korean chipmaker SK Hynix posted its highest operating profit in almost two years, but its stock still slid almost 3%. South Korea also reported a robust GDP growth of 3.4% in the first quarter, outperforming expectations. Experts remain optimistic about the equities market, with projections for the S&P 500 to reach 5,500 by the end of the year, driven by strong corporate earnings and consumer spending.
Vocabulary List:
- Stoxx (noun): A stock market index that represents European stock markets.
- FTSE 100 (noun): An index of the 100 companies listed on the London Stock Exchange with the highest market capitalization.
- CAC 40 (noun): A benchmark French stock market index representing 40 of the largest listed companies in France.
- Nikkei 225 (noun): A stock market index for the Tokyo Stock Exchangemeasuring the performance of 225 large-cap Japanese companies.
- Topix (noun): A stock market index that measures the performance of all first-section companies listed on the Tokyo Stock Exchange.
- Corporate Earnings (noun): The profits that a company makes from its core business activities.
