Global Stocks Steady Amid Bank Earnings and Covid-19 Concerns

Strategic Insights -

Global stocks are relatively steady as investors eye a busy session of bank earnings and shrug off concerns about the development of coronavirus treatments. The ongoing surge in European infections, which has led to lockdowns in several countries, has not had a significant impact on markets, with investors instead focusing on corporate earnings and the potential for a larger aid package in the early months of next year.

Key Takeaways:

  • Bank of America, Goldman Sachs, and Wells Fargo are set to report third-quarter earnings on Wednesday, with United Airlines and United Health also updating on September quarter profits.
  • Eli Lilly's decision to pause trials of its developing coronavirus therapy treatment over unspecified safety concerns has had little effect on markets, with investors focusing on earnings and the potential for a larger aid package.
  • The ongoing deadlock on stimulus in Washington is expected to have little effect on sentiment, with investors expecting a larger aid package in the early months of next year.
  • Tech stocks are expected to lead the day's gains, with the Nasdaq called 45 points higher following stronger-than-expected third-quarter earnings from ASML, a European semiconductor equipment maker.
  • The U.S. dollar index has extended gains against a basket of its global currency peers, while benchmark 10-year Treasury note yields have continued to rally.
  • Global oil prices have clawed higher, despite concerns about the demand side of price discovery.

Statistics:

  • Eli Lilly's therapy treatment trial was paused over unspecified safety concerns.
  • Bank of America, Goldman Sachs, and Wells Fargo will report third-quarter earnings on Wednesday, with United Airlines and United Health also updating on September quarter profits.
  • The U.S. dollar index has risen 0.07% to 93.595 against a basket of its global currency peers.
  • Benchmark 10-year Treasury note yields have fallen to 0.726% amid the broader risk market caution.
  • Global oil prices have risen, with WTI contracts trading 11 cents higher at $40.31 per barrel and Brent contracts trading 10 cents higher at $42.55 per barrel.
  • The Nasdaq is expected to gain 45 points on Wednesday following stronger-than-expected third-quarter earnings from ASML.

Sources:

  • Martin Baccardax, "The Wednesday Market Minute" (no date provided)
  • ASML, "Earnings Release" (no date provided)
  • The Wall Street Journal, "EarningsPreview: Bank of America, Goldman Sachs and Wells Fargo" (no date provided)
  • The New York Times, "AstraZeneca and Johnson & Johnson Pause Covid-19 Trials, Citing Safety Concerns" (no date provided)