The China Mail - Stocks slip as investors eye tariff impact among corporate earnings

US corporate profit reports so far were painting a generally resilient picture of the American economy, but with gathering clouds in some sectors -- particularly automobiles -- from Trump's levies on major trading partners.

New York's broad S&P 500 and tech-heavy Nasdaq indices dipped -- from record finishes on Monday -- while the blue-chip Dow struggled.

In Europe, only London ended the trading day in the green. Paris and Germany both finished solidly in the red.

"European markets have been getting increasingly jittery as the (August 1) deadline approaches," said David Morrison, senior market analyst at Trade Nation. "With little sign of progress so far, investors are preparing for possible tariff retaliation from the EU."

US Treasury Secretary Scott Bessent said meanwhile he would meet his Chinese counterparts in Stockholm next week for tariff talks, as a separate mid-August deadline approaches for US levies on China to snap back to steeper levels.

- Big earnings reports -

Closely-watched earnings loomed from some of the world's biggest names, including Tesla, Google parent Alphabet, Intel and Coca-Cola.

US auto giant General Motors reported a 35-percent plunge in second-quarter profits Tuesday following a $1.1-billion hit from US tariffs, but confirmed its full-year forecast.

Its shares plunged seven percent.

Elsewhere, "expectations for the earnings season include accelerated profit growth for major US technology companies in the second half of the year," said Jochen Stanzl, chief market analyst at CMC Markets.

British pharmaceutical giant AstraZeneca said Tuesday it would invest $50 billion in the United States by 2030 amid Trump's threats to impose tariffs on the sector.

The dollar continued to lose ground -- which has the effect of pumping up the earnings of US multinationals earning foreign currency revenue but reporting in dollars.

The greenback's slippage is proving "a turbocharger" for those companies, according to Stephen Innes, managing partner at SPI Asset Management.

Investment adviser Christopher Dembik at Pictet Asset Management said European companies reporting over coming days were conversely set to be hit by the effect of a stronger euro.

Oil prices also dropped amid worries about reduced global economic activity going forward.

Earlier in Asia, Hong Kong hit its highest close since late 2021. Its index has gained around 25 percent this year thanks to a rally in Chinese tech firms and a fresh flow of cash from mainland investors.

Tokyo dipped following an earlier rally after the ruling coalition lost its upper-house majority as observers warned the government's tenure remained fragile.

- Fed chief speech -

Traders were also looking ahead to a speech later Tuesday by US Federal Reserve Chair Jerome Powell, ahead of the Fed's monetary policy meeting on July 29 and 30.

Powell has come under pressure from Trump to quit, with the president angry at the Fed for not lowering interest rates in response to recent turbulence -- but the central bank is expected to keep them on hold until September.

Bessent said Tuesday he did not see a reason for Powell to resign "right now".

- Key figures at around 1545 GMT -

New York - Dow: UP 0.1 percent at 44,351.64

New York - S&P 500: DOWN 0.1 percent at 6,296.95

New York - Nasdaq Composite: DOWN 0.5 percent at 20,875.05

London - FTSE 100: UP 0.1 percent at 9,019.76 points (close)

Paris - CAC 40: DOWN 0.7 percent at 7,739.18 (close)

Frankfurt - DAX: DOWN 1.1 percent at 24,027.17 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 39,774.92 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 25,130.03 (close)

Shanghai - Composite: UP 0.6 percent at 3,581.86 (close)

Euro/dollar: UP at $1.1734 from $1.1688

Pound/dollar: UP at $1.3507 from $1.3485

Dollar/yen: DOWN at 146.51 yen from 147.42 yen

Euro/pound: UP at 86.89 pence from 86.68 pence

Brent North Sea Crude: DOWN 1.2 percent at $68.37 per barrel

West Texas Intermediate: DOWN 1.3 percent at $65.06 per barrel

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A.Kwok--ThChM