Futures fall, earnings fail, trade concerns persist

Prices on the US market are lower in Tuesday’s quotations

On Tuesday, the American market is waiting for a slightly lower opening. All major indexes are in retreat after the S&P 500 set a new all-time high on Monday. The Dow Jones Industrial Average leads with a loss of -0.20%, while the S&P 500 and NASDAQ Composite lose nearly -0.10%. Google and Mastercard earnings reports influence early trading, one positively, the other negatively.

Google reported revenues above expectations, but rising costs and expenses took a heavy toll on its financial results. EPS fell significantly short of consensus and caused the stock price to decline by -1.6%. Mastercard saw better-than-expected revenue and earnings results. The results were driven by acquisitions and cross-border transaction volume, with the company’s shares rising approximately 0.85% on the news. Merck and Pfizer also reported ahead of the opening. Both pharmaceutical giants delivered better-than-expected results and profits, with their shares rising 3.0%.

In economic news, the FOMC meeting begins today. The commission is expected to outline the rate cut in a policy statement tomorrow, but the prospects for future cuts remain unclear. Key economic data such as third-quarter GDP, personal income and spending, consumer prices and October jobs data will be released concurrently with or after the Fed’s decision.

EU markets are going down

EU markets are flat and falling at noon. FTSE leads with a loss of -0.60%, while DAX and CAC are trading closer to breakeven levels. The move in the UK is partly due to political disputes in parliament. Boris Johnson has failed three times to force a general election before the new Brexit date but is expected to try again.

BP shares are down approximately -0.50% on stock market news. The integrated oil company reports EPS is down -41% from last year, and prospects for future growth are dim. Swedbank shares are also down in early trading. The bank’s shares fell -2.0% following the announcement of an investigation into misconduct against a subsidiary.

Asian markets are mixed; Trading in hope versus fear of trading

After Tuesday’s session, Asian markets are very mixed. The Shanghai Composite and Hong Kong Hang Seng indices are the only markets to show losses, at -0.87% and -0.39% respectively. Japan’s Nikkie leads with a lead of 0.47%. The moves follow trade reports that appear to indicate a growing consensus between China and the US. Despite the hope, investors are cautious because there is still no agreement on the table and if one is reached, it will not be achieved to change the status quo.

This article was originally published on FX Empire

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