A look at the day ahead in U.S. and global markets from Mike Dolan
World markets lapped up a combination of steady U.S. interest rates, rejigged Treasury borrowing and lower oil prices – with an eye on Thursday’s earnings update from America’s most valuable company Apple.
The Federal Reserve left rates on hold again as expected – with an equivocal stance on further tightening as financial conditions generally remain tight. The Treasury, meantime, followed up on Monday’s forecast of a lower borrowing tally for the final quarter with plans to ease back somewhat on share of long-term debt it’s selling.
Along with signs of fresh weakness in U.S. manufacturing last month and further retreat in crude oil prices to their lowest since August, 10-year Treasury yields dialled back yet again as low as 4.70% on Thursday – the lowest in more than two weeks and now 32 basis points below recent highs.
With Apple (AAPL.O) up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open – setting Wall Street on course for a fourth straight day of gains for the first time in almost a month.
More than half way through the earnings calendar, third quarter annual profit estimates for the S&P500 are tracking a gain 5% – more than twice pre-season forecasts – and 80% of firms have beaten forecasts and tallying with the 4.9% economic growth reading for the same three-month period.
That then makes October economic soundings all the more important for both investors and…
