Futures on the S&P 500 and Nasdaq 100 fluctuated before turning lower after Monday's strong performance on Wall Street. A fifth of S&P 500 companies have now posted third-quarter earnings, with more than half outperforming estimates, though investors are concerned the effects of a slowing economy will be felt further down the line. Alphabet Inc. and Microsoft Corp. are among major companies reporting today.
“What we've seen throughout the year is that equity risk premia have really compressed,” Christian Mueller-Glissmann, Goldman Sachs managing director for portfolio strategy, said on Bloomberg TV. “That makes you more vulnerable if you disappoint on growth, cash flows, et cetera. For now that hasn't happened really, but all the lead indicators are pointing to risks in this direction.”Manufacturing and services data for the U.S.
Analysts are also expecting a jumbo hike of 75 basis points from the ECB on Thursday, even as many economists now reckon a recession has begun in the euro region. German business confidence improved in October, data showed Tuesday, though remained at depressed levels as Europe's largest economy heads into a challenging winter.
The offshore yuan fell to the lowest level since trading began a dozen years ago, as Xi's power grab raised concern that concentrated decision-making could weaken growth and destabilize geopolitics. The decline extended after China's central bank set the official fixing rate for the currency at the lowest level in 14 years.