FactSet U.S. Daily Market Preview

US futures are pointing to a flat open. European equity markets are slightly higher and Asian equities mostly finished higher, led by sharp gains in Greater China and Japan’s Nikkei. Risk appetite continues to lean positive, boosted by optimism around the technology sector and AI growth prospects. Market sentiment is also supported by encouraging US macroeconomic data and additional stimulus measures from China. The soft-landing narrative has gained traction, lowering expectations of a large Fed rate cut. In Europe, weaker economic data has increased the likelihood of a rate cut by the ECB in October, and the Bank of England may also ease policy by November. Meanwhile, the ongoing oil price selloff is attracting attention, with reports suggesting that Saudi Arabia may back away from its unofficial $100 price target.

Companies Mentioned: Intel, Arm, Amazon, EchoStar, AT&T, TPG

US futures are pointing to a higher open today. European equity markets have opened in the positive territory, following higher levels in Asian markets. Fed's 50bp rate cut reverberating. Powell cautioned against presumption that outsized rate cuts will continue. But markets continue to price in more dovish rate path than implied by dot plot, expecting 70 basis points of additional cuts by end-2024. BOJ, Norges Bank, BOE expected to leave policy unchanged in coming days.

Companies Mentioned: Vistra, Bel Fuse, Palantir Technologies

US futures are indicating a higher open today, up +0.2% as market awaits the upcoming macro events. Asian equities traded mixed in another quiet session, and European equities are broadly firmer in early trades. Anticipation builds for the FOMC meeting on Wednesday and the BOJ meeting on Friday. Futures increasingly suggest a 50 basis point Fed rate cut, but the focus may shift to expected rate cuts in 2024 and 2025, totaling an anticipated 250 basis points by the end of 2025. The BOJ is expected to maintain current policy, but market attention will be on Governor Ueda's communication to guide expectations for future rate hikes without inciting the volatility seen after the 31-Jul meeting.

Companies Mentioned: Intel, AMD, Sony

S&P futures are indicating a higher open today, up +0.22%. Following China's policy easing announcements, Asian equities closed mostly higher, with Shanghai Composite and Hang Seng recording substantial gains. European equity markets are also higher in early trades.

In today's highlight, PBOC announced measures to stimulate China's economy, including a 50 bps cut to the RRR to release CNY1T in liquidity, with potential further cuts by year-end. The 7-day reverse repo rate will decrease by 20 bps to 1.5%, and interest rates on existing mortgages will be reduced, alongside a nationwide reduction in the down payment ratio for second homes to 15%. China will also allow funds and brokers to use central bank funding for stock purchases and establish special refinancing options for share buybacks.

Companies Mentioned: Chevron, Liberty Broadband, Visa, Brookfield Asset Management

US futures are pointing to a higher open today after equities finished lower in Wednesday’s trading. European equity markets have opened with gains, following mostly lower Asian markets. Sentiment in US equity market stabilizing, as traders positioning for more volatility stemming from election and November Fed meeting. Most ECB speakers see 25 bps cut in December. BoE's Bailey signaled faster rate cuts in pipeline.

Companies Mentioned: Boeing, Southwest Airlines, Transocean, Seadrill