Europe before the bell: futures dip after raft of earnings
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EUROPE BEFORE THE BELL: FUTURES DIP AFTER RAFT OF EARNINGS
European stock futures are edging lower in early trade after a large number of corporate earnings, with markets also watching rising yields and preparing for the upcoming U.S. election.
Euro STOXX 50 futures are down 0.2%. Futures on the DAX FDXc1, CAC FCEc1 and FTSE FFIc1 are down 0.1%-0.3%.
Corporate earnings have been coming thick and fast.
Deutsche Bank DBKGn.DE today said it had returned to profit after it reduced the reserves set aside for investor lawsuits. Britain's Lloyds LLOY.L reported third-quarter profits that beat exepectations.
Volvo Cars VOLCARb.ST was the latest automaker to cut its growth outlook as the industry struggles with soft demand. It follows similar moves by Stellantis STLAM.MI and Volkswagen VOWG.DE who also trimmed forecasts last month.
Swiss pharma giant Roche ROG.S meanwhile said third-quarter sales gained a currency-adjusted 9%, beating market expectations.
Away from earnings, markets are focusing on the Fed policy outlook and the upcoming U.S. election.
Expectations for Fed rate cut continue to unwind as strong data supports a slower pace of decline. This has helped support yields, with the benchmark 10-year in the U.S. US10YT=RR up over 40 bps this month.
And in the race for the White House, betting odds on some prediction markets continue to favour former Republican U.S. President Donald Trump, a scenario that, if it plays out, could bring tariffs and be a possible negative for European equities.
(Samuel Indyk)
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