Modern Land defaulted on a payment, adding to worries about the debt crisis
Wall Street stocks closed at fresh record highs overnight as investors prepared for fresh quarterly earnings due this week. Alphabet, Microsoft, Amazon and Apple are set to report in the coming days. The Dow and the S&P 500 gained 0.18% and 0.47%, respectively, while the Nasdaq Composite rallied 0.90%, buoyed by a jump in Tesla stocks. As the company’s shares rose over 12.5%, the company’s market cap surpassed $1 trillion after Morgan Stanley hiked its price target on the shares to $1,200 from $900 while Hertz said it would order 100,000 Tesla vehicles.
Asian equities mostly advanced on Tuesday despite fresh worries about China’s property sector. Another developer, Modern Land, defaulted on a payment, adding to worries about the debt crisis at China Evergrande Group. MSCI’s gauge of Asia Pacific stocks outside Japan rose 0.15% to briefly notch a six-week high. Japan’s benchmark Nikkei 225 gained nearly 1.8%.
Tracking global earnings optimism, European stocks opened higher today. The pan-European Stoxx 600 added 0.3% in early trade. In individual stocks, UBS beat analyst expectations in the third quarter, reporting net profit attributable to shareholders of $2.3 billion. US stock index futures were marginally higher in early premarket trade on Tuesday. The Swiss bank’s stocks gained over 2% in early deals.
In currency markets, changes are relatively light across the board. The dollar is rebounding from a one-month low. As such, EURUSD is flirting with the 20-DMA, trying to regain the 1.1600 figure after a plunge seen yesterday. Later in the day, US new home sales and CB consumer confidence numbers could affect short-term dynamics in USD pairs. Also, traders are gradually preparing for the upcoming Federal Reserve meeting due next week.