U.S. Stock Futures Dip Before Bank Earnings: Markets Wrap.

U.S. Stock Futures Dip Before Bank Earnings: Markets Wrap.


U.S. equity futures edged lower as investors prepared for banks to report earnings. The pound steadied after the U.K. signalled it wouldn’t immediately abandon Brexit trade talks.

 

Wells Fargo & Co., Bank of America Corp. and Goldman Sachs Group Inc. are expected to release earnings later on Wednesday. Investors are looking to earnings season to provide a spark for equity markets amid the dwindling prospects for more economic stimulus before next month’s election.

 

Trading elsewhere in markets was mixed, and there were signs that the recent rally in emerging market stocks is losing steam. The MSCI Asia Pacific Index fell for the first time in eight days and China Evergrande Group plunged 17% after the developer raised less than anticipated in a share sale.

 

Treasuries turned higher while the greenback held steady. Oil driller Concho Resources Inc. jumped after a report that the company in talks to be acquired by ConocoPhillips.

 

Investors are still closely watching for any signs of progress on more U.S. economic stimulus. The S&P 500 fell on Tuesday amid concerns that lawmakers won’t be able to break a stalemate before the election.

 

Trump’s Grip on Senate Republicans Slipping With Stimulus Ploy

 

“We continue to see the ping-pong back and forth between the White House, Senate Republicans and Democrat-controlled House, and what’s at stake is both the size of the stimulus but also what the money goes toward,” David Chao, a strategist at Invesco Ltd., said on Bloomberg TV. “I still think there will be a stimulus package between now and the end of the year, which is what the market is partially discounting.”

 

In Europe, an index of travel shares dropped for a third day as authorities tighten curbs to regain a grip on the pandemic. Across the continent, infections are rising, France reported a surge in patients needing intensive care and Prime Minister Boris Johnson is facing pressure to order a national lockdown.

 

In emerging markets, Zambia told creditors including Eurobond holders that the government won’t be able to meet its obligations if they don’t agree to its proposed interest payment holiday. The bonds fell to four-month lows.

 

Here are some key events coming up:

  • Results from Wells Fargo, Bank of America and Goldman Sachs are due Wednesday; Morgan Stanley’s earnings are scheduled for Thursday.
  • U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.
  • European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.

 

These are some of the main moves in markets:

Stocks

  • Futures on the S&P 500 Index dipped 0.8% as of 6:44 a.m. New York time.
  • The Stoxx Europe 600 Index fell 0.5%.
  • The MSCI Asia Pacific Index rose 0.1%.
  • The MSCI Emerging Market Index declined by 0.1%.

 

Currencies

  • The Bloomberg Dollar Spot Index gained 0.5% to 1,169.10.
  • The euro was unchanged at $1.1734.
  • The British pound was unchanged at $1.2949.
  • The Japanese yen was little changed at 105.39 per dollar.

 

Bonds

  • The yield on 10-year Treasuries sank five basis points to 0.71%.
  • The yield on two-year Treasuries dipped one basis point to 0.14%.
  • Germany’s 10-year yield declined one basis point to -0.58%.
  • Britain’s 10-year yield dipped three basis points to 0.208%.

 

Commodities

  • West Texas Intermediate crude increased 1.7% to $39.90 a barrel.
  • Gold was unchanged at $1,898.47 an ounce.
  • LME copper fell 0.8% to $6,720 per metric ton.

Bloomberg.

Please follow and like us:

Leave a Reply

Cresta Help Chat
Send via WhatsApp
error

Enjoy this blog? Please spread the word :)

X