Marketmind: Trillion-dollar Tesla | Reuters

LONDON, Oct 26 (Reuters) – A have a look at the day forward from Sujata Rao

Apple, Amazon, Microsoft, Alphabet… and Tesla. We now have a trillion-dollar EV agency whose 10% surge on Monday lifted Wall Road to new file highs — electrical autos going mainstream is maybe encouraging information forward of the COP26 surroundings summit.

The information was much less cheerful from Fb which is contending with whistleblowers and falling recognition among the many younger. However a $50 billion buyback plan, unveiled after market shut, could also be sufficient to carry the shares on Tuesday, particularly if fellow tech titans Google, Microsoft and Twitter additionally submit upbeat figures.

All in all, the worldwide fairness index is inching again in direction of the file highs hit early-September. U.S. inventory futures pointing north for Tuesday and Japanese markets added 1.8%. In Europe, a shock 9% revenue increase at UBS — its highest in six years — might see the pan-European banking index rally additional previous April 2019 highs .

However the supply-chain snarl-ups, container visitors jams and chip shortages bedevilling corporations worldwide present no indicators of going away any time quickly.

Simply take carmaker Hyundai, which missed revenue estimates and predicted that the chip shortages hampering output would take a very long time to repair. And French automobile elements maker Faurecia noticed Q3 gross sales drop 10% as semiconductor shortages pressured its clients to chop manufacturing .

Then there’s the prospect of central financial institution coverage tightening, with the Financial institution of England wanting set to hitch rate-hike membership subsequent month.

All of it provides as much as slower financial development and earnings, Citi reckons. That might see buy-side analysts switching to web “downgrade” mode on inventory suggestions for the primary time because the pandemic first hit, it added.

And do not forget China, the place one other developer Trendy Land missed paying a bond due on Monday. Shanghai and Hong Kong shares fell, regardless of positive factors for EV companies.

Key developments that ought to present extra course to markets on Tuesday:

-Philadelphia Fed Nonmanufacturing Enterprise Outlook Survey

-U.S. month-to-month dwelling costs Aug/client confidence Oct/new dwelling gross sales Sept

-U.S. 2-year notice public sale

-Europe earnings: Norsk Hydro posts file Q3 ; Reckitt Benckiser ups full-year f’solid after upbeat Q3 ; Logitech gross sales rise on work-from-home growth

– -U.S. earnings: 3M, Corning, Eli Lilly, Basic Electrical, Hasbro, Invesco, JetBlue, Lockheed Martin, S&P International, United Parcel Service, Xerox, Google, Microsoft, Texas Devices, Twitter, Visa

Reporting by Sujata Rao; modifying by Karin Strohecker

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