Asian markets advanced after Intel, the world’s biggest chipmaker, beat analysts’ expectations. The company reported an $8bn profit in Q2, which showed that revenue increased by 12% from the first one, the biggest quarterly gain on record. This caused the S&P futures to spike 1% higher after just a few minutes in the late trading hours, something that the pair failed to do all day long. Moreover, just before the opening bell on Tuesday, Goldman Sachs also beat analysts’ projections, but this was widely priced in.
Intel’s better than expected results had wide implications in the global markets, since it lifted investors expectations for the remaining of the earnings season. In the fx market it helped the major currencies re-test the highs reached earlier in the day on Tuesday, while in the commodity market it helped raw materials recover some parts of the declines seen earlier in the day.
In addition, Intel’s results lifted most technology stocks in the Asian markets, helping the major regional indexes advance on Tuesday.
Overnight, the Japanese Nikkei added 42.52 points (0.46%) to 9,304.33. The Australian S&P/Asx rose 51.90 points (1.34%) to 3,919.00
Crude oil for August delivery was recently trading at $59.40 per barrel, lower by $0.40.
Gold for August delivery was recently trading higher by $1.60 to $924.60.