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Futures Rebound From Overnight Swoon On Strong Earnings As Key Brexit Votes Loom

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Futures Rebound From Overnight Swoon On Strong Earnings As Key Brexit Votes Loom

After spiking higher in the early overnight session for no obvious reason besides a largish buy order in an increasingly illiquid market, US equity futures faded most of their gains during the Asian session despite some renewed “trade deal optimism” after China’s Vice Foreign Minister Le Yucheng said that China and the United States have achieved some progress in their trade talks, before recovering much of their losses after the European open, and pushing modestly higher following strong earnings from P&G, UPS and UTX which helped push future above the flatline.

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It’s a huge week for corporate earnings, with around one-fifth of S&P 500 members due to report, including McDonald’s and Procter & Gamble on Tuesday followed by Microsoft and Caterpillar a day later. So far results have generally surprised to the upside, although estimates have declined sharply in recent week. Despite the beats, analysts are still cutting estimates for next year as the protectionist dispute between the world’s biggest economies continues to take a toll.

Futures closely tracked European markets which saw a flurry of company results including UBS profit beating estimates as the Swiss lender said it will book a roughly $100 million charge in the fourth quarter to restructure a unit. Helping European markets, drugmaker Novartis raised its earnings forecast for the third time this year. The European banking sector was off its best levels, however, with gains in tech and real estate names offset by losses in household, travels and construction.

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Earlier in the session, Asian stocks climbed for a second day, led by health-care firms, amid rising hopes that China-U.S.

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