Tuesday’s session is marked by monetary policy stabilization in Asia, where the People’s Bank of China left benchmark loan rates unchanged. In Europe, investors will focus on morning UK labor market readings and ZEW institute indices from Germany and the eurozone, which will outline economic sentiment amid industrial challenges. In the United States, attention will shift to the real estate sector and weekly labor market estimates. In the background, geopolitical tensions are rising in the South China Sea following an incident involving a US vessel and in the Strait of Hormuz, while US Strategic Petroleum Reserves (SPR) fell to their lowest level since 1982. Today’s trading on Wall Street will also be defined by a wave of earnings reports, led by GE Aerospace, General Motors, and Netflix’s post-market release. SpaceX will also publish its results, though it is worth noting that the company is not announced as a top constituent because it is not in the S&P 500, even though its valuation exceeds an astronomical $2 trillion.

Key Releases from the Asian Session

• China: 1-year Loan Prime Rate came in at 3.00% (consensus: 3.00%; previous: 3.00%). Result in line with expectations; PBOC refrained from cutting short-term money costs.
• China: 5-year Loan Prime Rate came in at 3.50% (consensus: 3.50%; previous: 3.50%). Maintaining the benchmark rate for mortgage loans indicates Beijing’s selective approach to further real estate market stimulus.

Macroeconomic Calendar (CET)

• 08:00 Germany – PPI m/m. Consensus: 1.5%. Previous reading: 1.1%.
• 08:00 United Kingdom – Average Earnings (3m/y). Consensus: 3.8%. Previous reading: 3.9%.
• 08:00 United Kingdom – Claimant Count Change. Consensus: 19.4k. Previous reading: 27.8k.
• 08:00 United Kingdom – Unemployment Rate. Consensus: 4.9%. Previous reading: 4.9%.
• 10:00 Eurozone – Current Account. Consensus: 29.2B. Previous reading: 27.6B.
• 11:00 Germany – ZEW Economic Sentiment Index. Consensus: 30.2. Previous reading: 34.7.
• 11:00 Eurozone – ZEW Economic Sentiment Index. Consensus: 23.6. Previous reading: 25.8.
• 14:15 USA – Weekly Employment Change according to ADP. Previous reading: 24.8k.
• 14:30 USA – Building Permits. Consensus: 1.39M. Previous reading: 1.40M.
• 14:30 USA – Housing Starts. Consensus: 1.30M. Previous reading: 1.28M.
• 16:00 USA – Pending Home Sales Index m/m. Consensus: -0.7%. Previous reading: 0.3%.
• 19:00 United Kingdom – Speech by MPC member Megan Greene
• 22:30 USA – Weekly Crude Oil Inventories Report according to API
• TBD New Zealand – GDT Dairy Price Index. Previous reading: 1.2%.

Corporate Earnings Results

• GE Aerospace (GE) – pre-market, EPS forecast: $2.02. A key barometer of demand in the commercial aviation sector and jet engine servicing profitability.
• SpaceX (SPCX) – post-market. Positive EPS is expected for the first time in history as a public company between 14 and 23 cents. Revenue is expected to reach $12.74B, representing a significant increase from $7.81B in Q2.
• Netflix, Inc. (NFLX) – post-market, EPS forecast: $0.82. The release will show the pace of ad-supported subscription monetization and the overall health of consumer spending on entertainment.
• RTX Corporation (RTX) – pre-market, EPS forecast: $1.78. An important indicator of order momentum in the defense sector and state of supply chains in aviation.
• Intuitive Surgical, Inc. (ISRG) – post-market, EPS forecast: $2.13. Valuation reflects demand for advanced medical procedures and hospital investments in robotics.
• Chubb Limited (CB) – post-market, EPS forecast: $6.53. Commercial insurance sector leader verifying catastrophe loss costs.
• Capital One Financial Corporation (COF) – post-market, EPS forecast: $5.45. Significant indicator of consumer debt health and credit card write-off levels in the US.
• 3M Company (MMM) – pre-market, EPS forecast: $2.41. The company represents a cross-section of demand across broader industry and consumer electronics.
• Northrop Grumman Corporation (NOC) – pre-market, EPS forecast: $7.22. Assessment of strategic defense program profitability amid rising military budgets.
• General Motors Company (GM) – pre-market, EPS forecast: $3.55. Litmus test for US auto market margins and the pace of EV investments.
• Halliburton Company (HAL) – pre-market, EPS forecast: $0.58. Insight into capital expenditure levels on oil and gas drilling in North America.
• United Airlines Holdings, Inc. (UAL) – post-market, EPS forecast: $2.60. Barometer for business and international travel demand and jet fuel costs.
• Other US market publications: America Movil (AMX, post-market, EPS: $0.46), MSCI Inc. (MSCI, pre-market, EPS: $4.98), Synchrony Financial (SYF, pre-market, EPS: $2.48), Omnicom Group (OMC, EPS: $2.68), KeyCorp (KEY, pre-market, EPS: $0.46), Equifax (EFX, pre-market, EPS: $2.19), Genuine Parts (GPC, pre-market, EPS: $2.09), East West Bancorp (EWBC, post-market, EPS: $2.69), Hasbro (HAS, pre-market, EPS: $1.86), Annaly Capital Management (NLY, post-market, EPS: $0.78), Mueller Industries (MLI), Equity Lifestyle Properties (ELS, post-market, EPS: $0.79), Ally Financial (ALLY, pre-market, EPS: $1.32), Vicor (VICR, pre-market, EPS: $1.38).

Markets to Watch

• British Pound (GBP/USD) – Reaction to the morning data package on wage dynamics and unemployment rate in the UK, which will weigh on upcoming Bank of England decisions, complemented by Megan Greene’s evening commentary.
• Crude Oil (WTI / Brent) – Market influenced by the drop in US SPR reserves to 1982 levels and rising shipping frictions in the Strait of Hormuz, ahead of the evening API report on inventory changes.
• US Stock Indices (S&P 500 / Nasdaq) – Investor activity driven by the accumulation of quarterly reports from major industrial and defense conglomerates (GE Aerospace, RTX) and anticipation of Netflix’s evening report.