Stock markets were mixed Tuesday in Asia-Pacific as traders avoided risk ahead of a Federal Reserve meeting. Japan's Nikkei 225 declined 0.1%; Hong Kong's Hang Seng Index was flat; Australia's S&P/ASX 200 gained 0.7%; China's Shanghai Composite lost 0.2%; South Korea's Kospi gave up 0.5%; and India's Sensex was up 0.1%.
Technology stocks might surprise traders expecting low volatility after second-quarter earnings reports are released, Goldman Sachs analysts say. Earnings releases have become a bigger driver of stock movement, with price swings reaching four times the daily average after first-quarter earnings reports were released.
Assurances by OPEC members meeting in St. Petersburg, Russia, to reaffirm their commitment to hold down oil production had little effect on the energy market. "Various producers will try to comply, but I think compliance will slip versus what has happened in the first half of this year," said Victor Shum of IHS Markit.
Alphabet said quarterly revenue shot up 21% amid a record $2.7 billion antitrust fine by the EU. The company warned that costs are rising faster than sales, a trend that will continue as users migrate their searches to mobile devices.
LedgerX, a trading platform for digital currency, has been approved to clear derivatives contracts by a unanimous vote of the Commodity Futures Trading Commission. The platform will begin clearing bitcoin options in early fall and Ethereum options a few months later.
The Federal Reserve has published additional guidance on Volcker rule compliance for banks starting up and spinning off hedge funds and private equity funds. Banks can apply for a two-year extension to the one-year limit to complete seeding investment.
FormulaFolios has filed with the Securities and Exchange Commission for two exchange-traded funds that would buy shares in other ETFs based on slightly different growth strategies. The FormulaFolios Tactical Growth ETF would invest mainly on price momentum, while the FormulaFolios Smart Growth ETF would shift part of its portfolio into Treasurys and cash equivalents when the market turned bearish.
A sale of Barclays' oil book has increased volume in the US crude oil options market, sources say. Big options trades in London signaled the sale.