U.S. stocks edge higher as traders await earnings, Fed - BNN Bloomberg

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Equity markets edged higher in cautious trade Tuesday, hemmed in by risks including upcoming company earnings and the outcome of this week's central bank meetings.

The Stoxx Europe 600 rose after a shaky start, while contracts on the Nasdaq 100 index gained as much as 0.4 per cent, following a weak session on Monday following a reweighting of constituents.

“Investors are unlikely to feel safe enough to get into the equities water before such an eventful week,” Mizuho International Plc strategists Evelyne Gomez-Liechti and Helen Rodriguez wrote in a note. “Data are finally starting to deliver the much-anticipated signs of economic slowdown that market participants so eagerly await.”

In the U.S., however, hopes have grown that the economy will be able to escape a sharp recession. That's lifted the Dow Jones Industrial Average five per cent so far this month, as investors price a better outlook for companies making industrial equipment and heavy machinery. That's put the Dow index in the midst of its longest winning streak in more than six years.

Chinese leaders have used this week's Politburo meeting to flag more aid to the economy, lifting Hong Kong-listed technology shares, while a Chinese property stock gauge was on course to post the biggest gain since December. U.S.-listed Chinese stocks extend their rally in premarket trading

 

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