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Solid Asian Equities Fails to Translate to Firmer US Futures

EQUITIES
  • Equity futures point to a mixed cash open later today, with a strong performance from Asia markets (particularly Hong Kong) failing to translate to more solid trade in US, European index futures. The Hang Seng is on course to close higher by 1% on a touted cut to stamp duty taxes on stock trading, although opening gains of over 2.5% were swiftly trimmed.
  • Particularly patchy trade is noted in NASDAQ futures (off by 0.5% vs. a flat DJIA future) due to poor results from Alphabet's Cloud unit, which drove earnings lower and prompted a 6% sell-off in after-market trading. This leaves Alphabet set to wipe off over $100bln in market cap at today's open. The underperformance in Cloud specifically will be hampering tech names, and has countered any support from Microsoft's 4% rally post-earnings.
  • Futures indicate early underperformance in France's CAC-40 (down 0.5%), while the DAX is set to fare better as the future sits 0.2% in the green.

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