Meta beats expectations but US banking fears linger

Once again US tech came to the rescue of European markets.

After Wall Street endured another difficult session linked to concerns about the stability of US regional banks, Meta Platforms delivered better-than-expected results and this lifted sentiment across the pond, helping the FTSE 100 to a steady start.

AJ Bell investment director Russ Mould said: “The owner of Facebook, Instagram and WhatsApp saw signs of recovery in its advertising business, helping to dispel concerns about the continued relevance of these platforms.

“This, plus the greater efficiency pursued by the business in recent months, is clearly helping to win the market over, although CEO Mark Zuckerburg’s continued insistence on pursuing his metaverse vision will ring in the ears of some investors like tinnitus.

“Meta also notably flagged its own developments on AI as the tech giants compete for their share of real estate in this nascent market.

“First Republic shares continued to crater, laying bare the crisis of confidence in this part of the US banking universe.

“For now, macroeconomic news has been pushed to the background by US earnings season and with some big names like Amazon and Apple still to report that’s likely to remain the case for a while at least, though core inflation data tomorrow could take the spotlight given its influence on Federal Reserve decision making.”