Equity Rally Stall as Earnings Take Centre Stage – Europe Market Wrap

Stocks remained in modest ranges ahead of a deluge of company results that might shed light on the status of the global economy.

Futures for the S&P 500 and Nasdaq 100 were flat, while GE fell after forecasting a profit that fell short of expectations, and 3M fell as slow consumer demand weighed on earnings.

Stock markets have largely ignored the Federal Reserve’s warnings that interest rate reduction are a long way off, instead celebrating the economy’s resiliency despite the most aggressive policy tightening cycle in decades.

Investors are now focused on the European Central Bank’s Thursday meeting and whether officials will signal the start of policy easing. The STOXX 600 index fell 0.2%.

BoJ Governor Ueda: Probability of reaching 2% inflation target increasing steadily.