Still, investors are cautious ahead of China’s fresh economic growth figures
After a mixed week, US stocks finished higher on Monday to start the week on positive footing despite a rise in Treasury yields. The 10-year US Treasury yield rose around 8 basis points to 4.712% during the session. The Dow Jones added nearly 1%, the S&P 500 gained 1.06%, and the tech-heavy Nasdaq Composite rallied 1.2%. Investors turned more optimistic ahead of corporate earnings, with more than 10% of the S&P 500 slated to report results.
In Asia, equities advanced on Tuesday as worries about war in the Middle East have abated somehow. Still, investors are cautious ahead of China’s fresh economic growth figures due on Wednesday. The report is expected to show continued weakness in economic growth. The Shanghai Composite index gained 0.3%, Australia’s S&P/ASX 200 climbed 0.5% and the Hang Seng in Hong Kong added 0.7%. Tokyo’s Nikkei 225 was up 1.2% to recover from the previous day’s steep drop.
European equities were muted on Tuesday, with the pan-European Stoxx 600 index hovering just above the flatline in early deals. Investors continue to monitor developments in Gaza. US President Biden will visit Israel on Wednesday. U.S. stock futures were slightly lower in early premarket trade ahead of the third-quarter earnings season. Bank of America and Goldman Sachs report their earnings ahead of the opening bell.
In currencies, the USD index has settled in positive territory on Tuesday, but the momentum looks too modest after a two-day slide. The DXY derived support from the 106.20 zone before bouncing marginally. However, the upside potential looks limited at this stage, especially as risk sentiment keeps improving in the global financial markets. Should the upcoming US economic data come in stronger than expected, the greenback may resume the ascent across the board.