US equity futures are slightly down as we enter Q4 after overnight trading in a narrow range. The S&P is up 20.8% so far in 2024, with the NDX up 19.2%, and the RTY up 10.0%. As of 8:00am ET, S&P futures are down 0.1% after the index reached a new record on Monday, its 43rd of the year. This follows a third-quarter rally that marked the longest winning stretch since 2021. Nasdaq futures are unchanged with Mag7 names mixed as Semis hold a slight bid. The FTSE is up 35bps, the CAC is down 20bps, and the DAX is up 30bps. The Nikkei is up 1.93%, and the record China market (Hang Seng/Shanghai) is closed for the next week due to holidays.
In premarket trading, Boeing is down about 1% as the company is considering raising at least $10 billion by selling new stock. Apple is down 1.5% after Barclays warns of weak demand for iPhone 16. Marine shipping firm ZIM Integrated Shipping fell as much as 4.9% after dockworkers walked out of every major port on the US East and Gulf coasts, marking the beginning of a strike. FedEx Corp. and United Parcel Service Inc. edged higher after Stifel said they are the “most obvious beneficiaries” of disruptions caused by the strike.
A global bond rally got fresh fuel Tuesday from data that euro-area inflation has been mostly vanquished, emboldening bets on interest-rate cuts. Treasuries advanced, while yields on 10-year German bonds fell as much as seven basis points to the lowest level since January.
European markets rise, with the Euro Stoxx 600 up 0.4% near session highs. FTSE 100 outperforms peers, adding 0.3%, IBEX lags, dropping 0.3%. Tech, real estate and travel are the strongest performing sectors. Euro-area inflation slowed below the European Central Bank’s 2% target for the first time since 2021, prompting money markets to add to bets on another quarter-point decrease by the ECB this month.
Asian stocks edged higher in thin trading on Tuesday, with a number of major markets including China, Hong Kong and South Korea closed for a holiday. The MSCI Asia Pacific Index was up about 0.2%. Japanese stocks recouped some of their losses from the previous day, when benchmarks were down more than 3%, thanks to a weaker yen. Australian stocks slipped.
Looking at today's calendar, US economic data calendar includes September final S&P Global US manufacturing PMI (9:45am), August construction spending and JOLTS job openings and September ISM manufacturing (10am) and September Dallas Fed services activity (10:30am). Fed speakers scheduled include Bostic (11am, 11:10am, 6:15pm), Cook (11:10am), Barkin and Collins (6:15pm).
Bottom Line
The start of Q4 has seen a mixed performance in the markets, with US equity futures slightly down and European markets on the rise. The S&P continues to perform strongly, marking its 43rd record high of the year on Monday. Despite some companies experiencing a dip in premarket trading, others are benefiting from the current market conditions. The global bond rally has also been given a boost from data showing that euro-area inflation has been mostly vanquished, leading to increased bets on interest-rate cuts. What are your thoughts on these market movements? Share this article with your friends and let us know your opinions. Don't forget to sign up for the Daily Briefing which is everyday at 6pm.
US equity futures are slightly down as we enter Q4 after overnight trading in a narrow range. The S&P is up 20.8% so far in 2024, with the NDX up 19.2%, and the RTY up 10.0%. As of 8:00am ET, S&P futures are down 0.1% after the index reached a new record on Monday, its 43rd of the year. This follows a third-quarter rally that marked the longest winning stretch since 2021. Nasdaq futures are unchanged with Mag7 names mixed as Semis hold a slight bid. The FTSE is up 35bps, the CAC is down 20bps, and the DAX is up 30bps. The Nikkei is up 1.93%, and the record China market (Hang Seng/Shanghai) is closed for the next week due to holidays.
In premarket trading, Boeing is down about 1% as the company is considering raising at least $10 billion by selling new stock. Apple is down 1.5% after Barclays warns of weak demand for iPhone 16. Marine shipping firm ZIM Integrated Shipping fell as much as 4.9% after dockworkers walked out of every major port on the US East and Gulf coasts, marking the beginning of a strike. FedEx Corp. and United Parcel Service Inc. edged higher after Stifel said they are the “most obvious beneficiaries” of disruptions caused by the strike.
A global bond rally got fresh fuel Tuesday from data that euro-area inflation has been mostly vanquished, emboldening bets on interest-rate cuts. Treasuries advanced, while yields on 10-year German bonds fell as much as seven basis points to the lowest level since January.
European markets rise, with the Euro Stoxx 600 up 0.4% near session highs. FTSE 100 outperforms peers, adding 0.3%, IBEX lags, dropping 0.3%. Tech, real estate and travel are the strongest performing sectors. Euro-area inflation slowed below the European Central Bank’s 2% target for the first time since 2021, prompting money markets to add to bets on another quarter-point decrease by the ECB this month.
Asian stocks edged higher in thin trading on Tuesday, with a number of major markets including China, Hong Kong and South Korea closed for a holiday. The MSCI Asia Pacific Index was up about 0.2%. Japanese stocks recouped some of their losses from the previous day, when benchmarks were down more than 3%, thanks to a weaker yen. Australian stocks slipped.
Looking at today's calendar, US economic data calendar includes September final S&P Global US manufacturing PMI (9:45am), August construction spending and JOLTS job openings and September ISM manufacturing (10am) and September Dallas Fed services activity (10:30am). Fed speakers scheduled include Bostic (11am, 11:10am, 6:15pm), Cook (11:10am), Barkin and Collins (6:15pm).
Bottom Line
The start of Q4 has seen a mixed performance in the markets, with US equity futures slightly down and European markets on the rise. The S&P continues to perform strongly, marking its 43rd record high of the year on Monday. Despite some companies experiencing a dip in premarket trading, others are benefiting from the current market conditions. The global bond rally has also been given a boost from data showing that euro-area inflation has been mostly vanquished, leading to increased bets on interest-rate cuts. What are your thoughts on these market movements? Share this article with your friends and let us know your opinions. Don't forget to sign up for the Daily Briefing which is everyday at 6pm.
