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A look at the day ahead in US and international markets from Mike Dolan.

This year’s drop in interest rates and interest rates for consumers is reflected in the headwinds of the world’s leading banks – political views similar to central banks are expected to push lending rates higher.

In the middle of the third earnings season, Big Tech and other consumer favorites are feeling the chill in cost of living problems and the rising dollar and commodity disruptions – adding to global financial fears as the economy continues to grow. read more

Quarterly results from mega caps Microsoft ( MSFT.O ) and Google-parent Alphabet ( GOOGL.O ) disappointed late Tuesday and sent both their shares down nearly 7% after the bell, undercutting the old Wall St stock benchmarks ( .SPX). ). S&P500 futures were down nearly 1% on Wednesday, paring Tuesday’s gains.

Google’s results were particularly negative for Facebook parent Meta Platforms ( META.O ), which relied heavily on advertising and reported its results late Wednesday. Apple and Amazon detailed how their businesses fared on Thursday.

Consumer benefits are different from the money they get from banks that are getting high interest from high interest rates – an injection of money from central bankers along with high interest rates and trade funds driven by volatile markets. read more read more read more

European banks that reported this week matched their Wall St counterparts on the numbers, raising concerns over European Central Bank meetings this week and meetings of the Bank of England and the US Federal Reserve next week. Both are planning to increase policy to reduce inflation – but this involves direct transfers to their banks and government spending. read more

The Bank of Canada is expected to raise rates by three quarters to a 14-year rate later on Wednesday, and the Canadian dollar rose sharply ahead of the decision. read more

Dark economic clouds leading to real sector gains were still visible in US consumer confidence and housing readings on Tuesday, and fears are mounting over whether the US Federal Reserve will soon be forced to reduce the rate of tightening. . read more read more

With rising energy prices and a slow recovery, especially the price of Russian natural gas in Europe, we expect that some Fed fears dragged down long-term yields and the US dollar further weakened.

Ten-year Treasury yields have also fallen to around 4% in the past 24 hours, more than 30 basis points below Friday’s peak. The dollar tumbled globally against the euro, yen, sterling and yuan – falling against the euro for the first time in more than a month.

Chinese shares (.CSI300), (.HSI) settled on Wednesday after a week of slide on concerns about the economic and political management of President Xi Jinping’s new cabinet. The offshore yuan also rose from a record low against the weaker dollar.

Sterling held back against the falling greenback but UK government borrowing rates fell on reports new British Prime Minister Rishi Sunak may delay announcing a longer-than-expected austerity package to Oct 31. read more

Key events that should provide guidance to US markets on Wednesday:

* US Sept new home sales, commercial listings, total sales. Eurozone Sept debt and capital,

* Bank of Canada policy decision

* The US Treasury sells 5-year notes, 2-year FRNs.

* Bank of England Director of Financial Stability, Strategy and Risk Lee Foulger speaks in London

*French President Emmanuel Macron and German Chancellor Olaf Scholz will hold a press conference following talks in Paris

* US company acquisitions: Meta, Ford, General Dynamics, Boston Scientific, Bristol Myers Squibb, Kraft Heinz, Hilton Worldwide, Norfolk Southern, Fortive, Amphenol, Waste Management, Rollins, Garmin, Teledyne, Avery Dennison, Hess, Thermo Fisher, Scientif Align Technology, Molina Healthcare, ADP, EQT, CME, IDEX, Globe Life, Everest Re, United Rentals, Roper Tech, Otis Worldwide, Old Dominion Freight Line, UDR, KLA, O’Reilly Automotive, Raymond James Financial, Fortune Brands , Houses of Inviting People

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By Mike Dolan, edited by XXX [email protected]. Twitter: @reutersMikeD

Our Standards: Thomson Reuters Trust Principles.

The opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from discrimination.


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