US EQUITY OPEN: Stocks open in the green on US/China trade hopes, China stimulus and strong AMD earnings; focus turns to FOMC

US EQUITY OPEN: Stocks have opened in the green on Wednesday with risk supported by US China-Trade hopes with Treasury Secretary Bessent set to meet China on Saturday in Switzerland. Meanwhile, AMD earnings were also strong, albeit partially offset by weak SMCI numbers. Sectors are predominantly green with Consumer Discretionary and Communication Services outperforming, while Materials and Consumer Staples lag. Elsewhere, the Treasury curve is flattening after recent steepening with the 10yr chopping overnight and in the European morning amid a lack of US data and ahead of the Federal Reserve rate decision. Crude prices are lower with recent downside stemming from trade concerns, perhaps regarding the EU after reports and commentary from officials said it was to announce a provisional list of tariffs against the US on Thursday, noting the new EU tariffs are to be enforced if talks with the US fail. Meanwhile, VP Vance has been suggesting he thinks there is a deal that would reintegrate Iran into the global economy. However, regarding Russia and Ukraine, he said there is a big gulf between where Ukrainians and Russians are. In FX, the Yen and Antipodeans are underperforming, although other major currencies are relatively flat vs the Dollar. The Yuan is only marginally softer vs the buck, but the PBoC did announce a cut to the RRR alongside announcing other measures amid a "world economy full of uncertainties". Attention ahead turns to the US FOMC. 

STOCK SPECIFICS:

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  AMD (AMD): EPS & revenue beat with strong data centre growth but warned of USD 1.5bln revenue hit in 2025 from AI chip export controls to China


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  Super Micro Computer (SMCI): Top & bottom line light with weak next Q guide as it cites economic uncertainty, tariffs, & delayed AI server demand


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  Arista Networks (ANET): Pressured on sequential margin guidance cuts


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  Electronic Arts (EA): Revenue & bookings topped with strong FY bookings outlook


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  Coty (COTY): EPS & revenue light; Cut FY guide amid weak US demand and tariff uncertainty


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  CrowdStrike (CRWD): To cut ~5% of its workforce.


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  Disney (DIS): EPS & rev. beat with solid FY EPS outlook


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  Uber (UBER): Top line & gross bookings light


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  Marvell Technology (MRVL): Postponed a previously scheduled investor day conference, citing a "dynamic macroeconomic environment".


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  AvidXchange (AVDX): TPG & Corpay to acquire the Co. in USD 2.2bln take-private deal or USD 10/shr; Note, AVDX closed Tues. at USD 8.20/shr

07 May 2025 - 15:03- ForexResearch Sheet- Source: Newsquawk