The equity markets

The equity rally continued overnight as Asia–Pacific (APAC) equity markets followed the US index lead.

The Australian dollar

The AUD was up for a third straight day, supported by the latest Australian inflation data. The trimmed mean consumer price index (CPI), the measure preferred by the Reserve Bank of Australia (RBA), rose 1% in Q1 quarter-over-quarter (QoQ), compared to market estimates of a 0.8% increase. Markets have abandoned hopes for any RBA rate cuts this year.

The German Ifo

At 9 a.m., the German Ifo business climate is expected to rise to 88.9 in April. Last month, the index came in at 87.8.

Lloyds Banking Group

Lloyds Banking Group's underlying net interest income fell 10% to £3.2 billion. Operating costs of £2.4 billion, up 11 percent.

Kering

Kering issued another profit. It now expects a decline of between 40 and 45% in its first half operating income compared with 2023. Its first-quarter sales dropped 10% on a like-for-like basis to €4.5bn.

Roche

Roche sales fell 6% in Q1 to 14.4 billion Swiss francs. It reiterates its 2024 guidance of an increase in sales and adjusted earnings per share in the "mid single-digit" percentage range.

Tesla

Tesla shares jumped on Tuesday evening after announcing new plans for new and more affordable vehicles. Investors applauded the decision to use existing factories to put in place this new strategy. This means that investments in new production plants in Mexico and India now look unlikely. Tesla earnings came in at 45 cents per share, four cents lower than analysts' expectations. Revenue also missed forecasts by nearly $1 billion.

Visa

Visa beat analysts forecasts for both lines in the past quarter. Earnings came in at $2.51 per share on revenue of $8.78 billion. The street had anticipated EPS at $2.44 and revenue at $8.62 billion. Visa's payment volume climbed 8% in the second quarter. Cross-border volume, excluding intra-Europe, a gauge of international travel demand, jumped 16%.

Meta

Meta is due to report tonight after the US closing bell. The street anticipates earnings of $4.32 per share on revenue of $36.14 billion. Investors will keep a close eye on ad growth, which is essential to Meta. In Q4, digital ad sales accounted for 97% of the group's revenue. For this quarter, analysts project advertising sales growth of 26% to $35.4 billion, or 98% of total sales.

Meta's investiment in AI

Ad sales are crucial if Meta wants to continue to heavily invest in AI. In February, the group raised the high end of its 2024 capital expenditures guidance to between $30 billion and $37 billion. Also expected today are earnings from Boeing, AT&T, IBM, and Ford Motor.