Australia

Australian shares are set to edge lower following a dip on Wall Street. US stocks end mixed as strong results drove the DJIA higher, while the Nasdaq and S&P 500 fell.

ASX futures were down 26 points or 0.4% at 6813 as of 7:00am on Friday, pointing to a slip at the open.

The fall in US stocks was led by a 25% decline in shares of Facebook parent Meta Platforms. Stronger-than-expected 3Q GDP growth and a slight rise in weekly jobless claims eased some fears of a weakening economy.

But technology shares remain under pressure ahead of quarterly results from Apple, Amazon and Intel. Caterpillar and McDonald's are among the top Dow components following earnings, while Boeing gains 4.5%, clawing back some of Wednesday's decline.

DJIA gained 197 points to 32036, while the S&P 500 lost 0.6% to 3807 and the Nasdaq dropped 1.6% to 10792.

In commodity markets, Brent crude oil jumped 1.15% to $US96.78 a barrel, gold edged down 0.2% to US$ 1,661.08.

In local bond markets, the yield on Australian 2 Year government bonds dropped to 3.28% while the 10 Year fell to 3.83%. Overseas, the yield on 2 Year US Treasury notes rose to 4.33% and the yield on the 10 Year US Treasury notes was flat at 3.95%.

The Australian dollar hit 64.60 US cents down from the previous close of 64.95. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies edged up to 102.77.

Asia

Chinese stocks finished lower, as negative sentiment took hold again after a brief upturn in the previous session and liquor makers slumped. Index heavyweight Kweichow Moutai fell 4.3%, extending its losing streak to a ninth session, while Wuliangye Yibin lost 4.4%. Tsingtao Brewery skidded 8.7% despite its 3Q profit rising 18%. Power utilities also slid. The Shanghai Composite Index declined 0.6% to 2982.90, the Shenzhen Composite Index dropped 0.6% and the ChiNext Price Index was 1.5% lower.

Hong Kong's Hang Seng Index rose 0.7% to 15427.94, as the market continued to rebound from losses earlier this week. A selloff in Chinese equities following China's party congress appears to reflect "excessive pessimism" and the market looks "overly discounted," Bank of Singapore said in a note. Tech stocks extended recent gains, with Alibaba Group up 4.1% and JD.com adding 5.9%. Budweiser Brewing climbed 6.8% after its 3Q revenue grew 7.2%.

Japan's Nikkei Stock Average fell 0.3% to close at 27345.24 as cautious investor sentiment toward technology companies' earnings outweighed ongoing hopes for a slower pace of Fed tightening. Among the worst performers on the benchmark index were financial institutions such as Resona Holdings, which fell 4.8%, Sumitomo Mitsui Trust, which was down 3.9% and Mizuho Financial Group, which lost 2.7%.

Europe

European stocks rose as gains for mining, construction and industrial stocks offset losses for banks and brewers. The Stoxx Europe 600 advanced 0.7%, the French CAC 40 increased 0.4% and the German DAX jumped 1.1%.

In London, the FTSE 100 rose 0.2% to 7071 points, led by oil and gas stocks after Shell posted its third-quarter earnings.

Shell gained 3.8% as the energy giant's third-quarter adjusted earnings met analysts' expectations and it announced plans to hike its dividend by year-end and extend its share repurchasing program. Unilever climbed 0.3% after the consumer goods group raised its full-year sales forecast as it raised prices to offset rising costs.

Telecoms group Airtel Africa fell 5.4% after its half-year results, Anglo American dropped 2.3% after the miner's third-quarter production report and Lloyds Banking Group declined 1.6% after its interim statement.

North America

US stocks ended the day mixed after data showed the US economy returned to growth in the third quarter and ahead of earnings updates from tech giants Amazon.com and Apple. The Dow Jones Industrial Average gained 0.6%, about 200 points, its fifth day in a row of gains. The blue-chip index was boosted by shares of Caterpillar.

The S&P 500, meanwhile, fell 0.6%. The tech-focused Nasdaq Composite lost 1.6%. Both suffered their second straight day of losses.

Stocks have swung lately, driven by continued uncertainty about the pace of interest rates and the latest batch of corporate earnings.

On Thursday, the latest gross domestic product data showed that the US economy grew at a 2.6% annual rate last quarter, the latest sign that the economy is stronger than many have feared throughout the year. Fresh data also showed that the jobs market is holding up well.
Still, investors are worried that lackluster results so far in technology companies' earnings could be a sign that an economic slowdown is on the horizon. This week, some of the biggest technology firms have reported financial results that have disappointed investors.

Facebook parent Meta Platforms posted its second revenue decline in a row after markets closed Wednesday. The social-media company is battling a host of challenges, including a tough macroeconomic climate, growing competition and the fallout from Apple's ad-tracking changes, all of which have taken a toll on its advertising business. Shares plunged 25% and were on track for their biggest one-day decline since the company went public around a decade ago.

Some investors said they were bracing for bigger losses ahead for tech stocks after an already punishing year.

"I would be more skeptical of being tempted to own what might look cheap, " said Rupal Bhansali, chief investment officer and portfolio manager of global equity strategies at Ariel Investments, of Meta shares. "It seems cheap, but it's an optical illusion."

Google reported its fifth consecutive quarter of slowing sales growth earlier this week, with its YouTube video platform posting a drop in advertising revenue for the first time since the company began reporting the unit's performance. The company's shares fell 2.85% on Thursday, bringing losses for the week to 8.8%.

"Some of the tech earnings have been very disappointing," said Sebastian Mackay, a multiasset fund manager at Invesco. Advertising has historically been seen as a bellwether for how the economy is doing, he said, with the decline in that part of earnings "suggesting the economy is slowing."

Shares of Honeywell International gained 3.3% after the conglomerate housing aerospace, materials and other businesses raised its full-year profit forecast. Caterpillar posted a big increase in third-quarter sales, with demand for its construction and other heavy equipment holding up even as it raised prices. Shares rose 7.7%.

Intel, Amazon.com, Apple and T-Mobile US will post results after the market close.