Australia

Australian shares are set to open higher, while US tech stocks lost ground overnight.

ASX futures were up 0.36% or 29 points as of 8:00am on Wednesday, suggesting a higher open.

In the US, tech stocks extended their recent slide Tuesday, continuing the stock market's rotation away from its biggest winners.

The tech-heavy Nasdaq Composite fell 1.3% and the S&P 500 dropped 0.5%, while the Dow Jones Industrial Average rose 0.5%, or about 203 points.

In commodity markets, Brent crude oil was down 0.8% to US$79.13 a barrel, while gold was flat at US$2,410.65.

The Australian dollar was at 65.37 US cents, down from its previous close of 65.48.

Asia

Chinese shares closed lower on weak sentiment after the July Politburo meeting vowed to roll out more policy support to lift growth but didn't elaborate on the specifics. The benchmark Shanghai Composite Index closed 0.4% lower at 2,879.30, the Shenzhen Composite Index fell 0.2% and the ChiNext Price Index declined 0.3%. Oil stocks weighed with Cnooc down 5.2% and PetroChina losing 3.9%. Meanwhile, WuXi AppTec closed 4.3% higher after the company maintained its 2024 sales target despite lower revenue and net profit in 1H. Property stocks rose after the policymakers in the Politburo meeting reiterated efforts to buy up surplus apartments and turn them into public housing. China Vanke gained 0.9% and Poly Developments & Holdings rose 1.8%.

Hong Kong shares ended lower, with the Hang Seng Index declining 1.4% to 17,002.91. Investors are digesting the just-ended Politburo meeting, where Chinese leaders acknowledged growing challenges but said Beijing will meet its economic growth target. Among major stocks, Hang Lung Properties dropped 12% after posting lower 1H profit. Xiaomi declined 3.0% lower and BYD fell 2.85%. Gainers included Standard Chartered, which advanced 4.9% higher after reporting 2Q results and announcing a $1.5 billion share buyback. Samsonite International added 5.0% and NetEase was 1.3% higher.

Japan's Nikkei Stock Average edged 0.15% higher to close at 38,525.95, erasing earlier losses in likely position adjustment before the Bank of Japan's decision Wednesday. Market participants have their eyes on the decision and on any clearer measures toward reducing JGB purchases in coming years, said Yeap Jun Rong, market analyst at IG, in an email. Among best performers on the Nikkei, Chugai Pharmaceutical rose 3.3% and OMRON Corp. added 3.0%. Fanuc advanced 2.9% after it raised FY revenue and net profit guidance. The 10-year JGB yield was down 3 bps at 0.995%.

Indian shares edged higher, with the Sensex rising 0.1% to 81,455.40. Investors are awaiting the Fed rate decision and U.S. tech megacaps' earnings later this week, UOB analysts said in a research note. Utilities stocks advanced. NTPC was 3.3% higher and Power Grid Corp. of India added 2.1%. Decliners included ICICI Bank, which dropped 0.3%, and ITC, down 1.2%. Mahindra & Mahindra Ltd. fell 0.5%.

Europe

Stocks in the U.K. slipped Tuesday, as the FTSE 100 Index fell 0.2% to 8,274.41.

Among large companies, Oxford Nanopore Technologies PLC posted the largest decline, dropping 6.3%, followed by shares of Ocado Group PLC, which dropped 6.0%. Shares of ConvaTec Group PLC dropped 5.8%.

St. James's Place PLC was the biggest gainer during the session, surging 25%, and Standard Chartered PLC surged 5.9%. Greggs PLC rounded out the top three movers on Tuesday, as shares gained 5.0%.

In other parts of Europe markets closed higher, with the STOXX Europe 600 Index up 0.5% to 514.08, Germany's DAX added 0.5% to 18,411.18 and France's CAC 40 rose 0.4% to 7,474.94.

North America

Tech stocks extended their recent slide Tuesday, continuing the stock market's rotation away from its biggest winners.

Investors studied a flood of earnings reports. And they prepared for data and remarks in the coming days that could shed light on some of the biggest issues facing markets: the performance of big tech companies, the thinking of the Federal Reserve and the state of the labor market.

The tech-heavy Nasdaq Composite fell 1.3% and the S&P 500 dropped 0.5% as many of the big tech stocks lost ground. Nvidia shares slumped 7%, Microsoft shares retreated 0.9% and Amazon.com shares slipped 0.8% .

The Dow Jones Industrial Average, which includes only some of the tech stocks, rose 0.5%, or about 203 points. The Russell 2000 small-cap benchmark added 0.3%, building its lead over indexes that are heavily influenced by big tech.

So far in July, the Russell 2000 has outperformed the Nasdaq by 12.8 percentage points, while the Russell 1000 Value index has beaten its growth-stock counterpart by 9 points. Both are on pace for their largest monthly leads since February 2001, according to Dow Jones Market Data.

"The market's kind of playing catch-up for everything that was forgotten about over the last year," said Lamar Villere, a portfolio manager at investment firm Villere & Co.

The Russell 2000 is now up 11% in 2024, compared with gains of 14% by the S&P 500 and the Nasdaq Composite.

In the coming days, investors will study a batch of results from big tech companies for signs of whether the group can regain its momentum in the market. Meta Platforms is expected to report Wednesday, followed by Amazon.com and Apple on Thursday. Disappointing reports from Tesla and Alphabet helped prompt a selloff last week.

Money managers are also focused on the Federal Reserve's meeting this week. The central bank is expected to keep its benchmark interest rate steady Wednesday, but observers will parse the Fed's policy statement and Chair Jerome Powell's news conference for clues about future rate cuts.

The monthly jobs report Friday will offer the latest view into the health of the labor market, potentially influencing the Fed's thinking about rates.

"You've got a stock market that is certainly waiting for some bigger news to be released over the next couple of days," said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management. "We're going to learn a lot more and be a lot more informed."

Earnings reports drove big moves Tuesday in individual stocks.

PayPal shares jumped 8.6% after the digital-payments company beat expectations and raised its annual earnings guidance. Stanley Black & Decker shares rallied 10% after the power-tool maker lifted its earnings outlook for the year.

Merck shares tumbled 9.8%, by contrast, after the drugmaker lowered its forecast for earnings this year. Procter & Gamble shares fell 4.8% after the maker of Tide detergent and Pampers diapers reported lower-than-expected sales.