European Shares Set To Open Mostly Higher
(RTTNews) - European stocks are seen opening mostly higher on Tuesday, even as a cautious undertone may prevail as investors await cues from the latest batch of earnings and speeches by Federal Reserve officials.
3M, Comcast, General Motors, Lockheed Martin and Verizon are among the prominent U.S. companies due to report their quarterly results before the U.S. opening bell.
EV maker Tesla, Boeing, Coca-Cola, IBM Corp and United Parcel Service are among the other companies that will report their quarterly results this week.
Outside of earnings, reports on durable goods orders, new and existing home sales, the Federal Reserve's Beige Book, weekly jobless claims figures and the final reading of consumer sentiment from the University of Michigan will be on top of mind for investors.
Asian stocks were deep in the red due to concerns stemming from geopolitical tensions, the approaching U.S. presidential election and uncertainty over the Fed rate path.
Chinese and Hong Kong markets bucked the weak trend and were seeing marginal gains after the People's Bank of China conducted its first operation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), boosting liquidity for financial institutions.
The dollar held steady near recent highs after bond yields surged on cooling expectations of Federal Reserve rate cuts. Gold continued its record winning streak despite elevated U.S. bond yields.
Oil prices were moving lower in Asian trading after climbing almost 2 percent on Monday.
U.S. Secretary of State Antony Blinken has arrived in Israel to revive Gaza ceasefire talks following the death of Hamas leader Yahya Sinwar, but any breakthrough looks elusive.
Israel is accelerating military operations to push Hezbollah away from its northern border while thrusting into Gaza's densely packed Jabalia refugee camp in an attempt to seal off northern Gaza from the rest of the enclave.
U.S. stocks ended mostly lower overnight as bond yields jumped and investors geared up for key earnings. In economic news, data showed the leading economic index fell more than expected in September.
The 10- and 30-year Treasury yields hit almost three-month closing highs on growing worries about the prospects of a rising U.S. deficit and fears about higher-for-longer interest rates.
The Dow gave up 0.8 percent to log its biggest fall in two weeks and snap a three-session winning streak. The S&P 500 slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks closed lower on Monday, with earnings, Middle East tensions and the looming U.S. presidential election garnering investor attention.
The pan European STOXX 600 dropped 0.7 percent. The German DAX and France's CAC 40 both fell around 1 percent while the U.K.'s FTSE 100 dipped half a percent.