Global equities remained under pressure Monday as investors braced for a pivotal week of megacap earnings and central bank decisions. MSCI's Asia Pacific gauge swung between small gains and losses after its fourth straight weekly decline, the longest since April. S&P 500 and Nasdaq 100 futures pared early gains, reflecting last week's intense pressure on the AI trade and a key US chip gauge's longest weekly losing streak since November.
A Tokyo-listed ETF tracking Brazilian stocks plunged 12% after Luiz Inácio Lula da Silva's surprise runoff victory. Brent crude fell 1.1% to about $115.40 a barrel from a six-month high. US President Donald Trump warned of "decision time" on Iran as Middle East tensions mount.
This week features earnings from Microsoft Corp., Alphabet Inc. and Amazon.com Inc., which will test confidence in the AI sector. The Federal Reserve, Bank of Japan and euro zone central banks are expected to keep rates steady while maintaining a hawkish stance. The Fed raised rates in September for the first time since 2023 and signaled another increase likely in December.
French bond futures rose after Moody's avoided a downgrade. Gold slipped 0.2% to ~$3,990 an ounce. About 550 MSCI Asia Pacific companies report this week, including AI leaders SK Hynix Inc. and Samsung Electronics Co. Geopolitical risks remain elevated, with Trump suggesting potential Iran strikes after Nov. 3 midterms.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing