US Futures Steady as Alphabet Jumps 5% on Earnings – Europe Market Wrap

With all eyes on the UK budget later Wednesday, the Stoxx 600 index in Europe dropped more than 1% amidst a barrage of profits. According to figures released on Wednesday, the third quarter saw a stronger than anticipated expansion of the euro area’s economy, with even Germany escaping the recession that was generally predicted to hit it. However, a gauge of economic optimism unexpectedly fell.

As investors sorted through business profits, US market futures moved. Later in the day, Microsoft and Meta’s results were expected. Bitcoin and gold were trading close to all-time highs.

While Advanced Micro Devices fell 8% following a poor revenue forecast, Alphabet surged more than 5% in premarket trade when the Google parent company’s profits exceeded forecasts. Following lower-than-expected sales of its popular weight-loss medication, Eli Lilly saw a 10% decline. Following revenue and profit forecasts that fell well short of expectations, Qorvo, whose largest client is Apple, fell 19%.

A week or so before the Fed’s meeting, investors are focussing on three high-profile US data that are expected to reveal both a brief slowdown in employment growth and underlying economic resiliency. Additionally, they are preparing for the November 5 US presidential election, which is too close to call.