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Market News


European Markets

Opening calls are indicating a flat open this morning.

Asian Markets

Asian stocks erased earlier losses and metals rallied after comments from Chinese Premier Wen Jiabao stoked speculation the nation will ease monetary policy.

US Markets

U.S. stocks ended at the lowest levels of the day Tuesday, with a sell-off picking up steam in the final minutes of trading, as investors geared up for a key summit on Europe’ debt crisis.

A handful of disappointing earnings reports also added to the gloomy mood on Wall Street.

The Dow Jones industrial average finished 207 points lower, or 1.7%. The S&P 500 slid 25 points, or 2%, and the Nasdaq composite lost 61 points, or 2.3%. The day’ decline snapped a 3-day winning streak for the Dow and S&P 500.

 

Events today

All eyes will be on Brussels on Wednesday as EU leaders meet to thrash out a deal on the debt crisis. British Prime Minister David Cameron will be in attendance, despite reports that French President Nicolas Sarkozy believes the meeting should be confined to leaders of euro zone countries. Following the summit, the German parliament will vote on any new European Financial Stability Facility guidelines.

Meanwhile political turmoil in Italy added to nervousness. Umberto Bossi, leader of the Northern League, whose support is vital to Silvio Berlusconi, said the coalition had reached agreement on economic reforms, but added he was still pessimistic about the survival of the coalition government.

Earnings season continues in Europe with a number of leading companies reporting third quarter results on Wednesday.

French carmaker Peugeot and tire maker Michelin will release their data at 6:30 UK time.

German chemical firm Merck lowered its full year outlook, despite recording better-than-expected earnings. Merck saw third-quarter net income rise 7.5 percent to 227 million euros ($315.8 million), above the 188 million ($261.5 million) Reuters estimate.

and software group SAP report at 7:00.

From the UK, British American Tobacco will release its third quarter trading data on Wednesday and GlaxoSmithKline will report on the quarter.

Dutch brewer Heineken is also set to announce its quarterly results on Wednesday.