Earnings Keep Stocks Aloft at Start of Fed Week – Europe Market Wrap

Stocks rose on earnings optimism as traders anticipated a busy week for business reporting. The yen rallied after reaching its lowest level in 34 years.

With Apple and Amazon set to report in the coming days, investors will be looking for further proof that large technology earnings will keep equities rising. S&P 500 futures rose 0.1% on Monday. Tesla’s stock rose 8% in premarket trade after passing regulatory barriers to launch its driver-assistance technology in China.

Ten-year Treasury rates decreased three basis points to 4.63%, while the dollar declined. Oil prices fell, with Brent oil trading below $89 a barrel, as US officials sought to broker a peace deal between Israel and Hamas that would reduce Middle Eastern geopolitical tensions.

The Federal Reserve’s meeting on Wednesday and the US employment data on Friday will likely be important for markets this week. The last time Fed Chair Jerome Powell spoke, he signalled that policymakers were likely to maintain borrowing prices high for longer than expected, citing a lack of additional progress in lowering inflation and persistent labour market strength.