- Equity markets edged higher in cautious trade, constrained by risks including upcoming company earnings and the outcome of this week’s central bank meetings.
- After a rocky start, the STOXX Europe 600 index recovered, and contracts on the Nasdaq 100 index rose as much as 0.4% after a sluggish session on Monday due to a reweighting of members.
- Given the uncertainty surrounding the signals that the Federal Reserve and ECB's policymakers may send—the Fed's prospective policy path being particularly important for global markets—investors don't seem willing to make large wagers. Anxiety is increased by the fact that this week, $27 trillion worth of global corporations, including Microsoft and Alphabet later on Tuesday, will report results.
- Tuesday's major survey of bank lending in the eurozone revealed a record drop in credit demand from the region's businesses. The results raise concerns about the ECB's ability to raise interest rates much further than the 25 basis points estimated for this Thursday's meeting, especially in light of Germany's dismal business outlook assessment.
