Oct 28 (Reuters) – A look at the day ahead in European and global markets from Wayne Cole.
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The bonhomie is at least a relief from the usual trade war invective and keeps alive hopes for some sort of rapprochement with China later in the week.
European and Wall Street futures are mostly flat, no surprise given the who’s who of mega-caps reporting this week have a lot to live up to.
Expectations are high given that of the 30% of S&P 500 companies reporting so far, 85% have topped the Street on EPS. Options imply share price swings of 6% in either direction are possible depending on the results.
The long-end would also very much like for the Fed to stop running down its balance sheet, please. No more QT for thee.
An actual hike would certainly trigger a violent sell-off in dollar/yen, suggesting the risk-averse BOJ might just lay the groundwork for a tightening in December or January.
Key developments that could influence markets on Tuesday:
– ECB bank lending survey
– U.S. Conference Board Consumer Confidence, Richmond Fed October Manufacturing Index, Dallas Fed services survey, August house prices
By Wayne Cole; Editing by Jamie Freed
Our Standards: The Thomson Reuters Trust Principles.
