Global shares experienced a mixed performance in cautious trading on Tuesday as investors awaited upcoming earnings reports. Wall Street's prolonged rally showed signs of slowing down, leading to a decline in global markets.
In Europe, France's CAC 40 and Britain's FTSE 100 saw losses, while the German DAX managed to edge higher. Meanwhile, futures for the S&P 500 and the Dow Jones Industrial Average were down slightly.
Asian markets also faced downward pressure, with Japan's Nikkei 225, Australia's S&P/ASX 200, and South Korea's Kospi all closing lower. However, Hong Kong's Hang Seng and the Shanghai Composite in China posted modest gains following a recent interest rate cut.
Market analysts are anticipating a period of heightened volatility in the coming weeks due to various factors, including the U.S. election, central bank decisions, geopolitical tensions, and corporate earnings releases.
On Monday, the S&P 500 and the Dow experienced minor declines, while the Nasdaq composite managed to eke out a gain. The recent rally in U.S. markets has been driven by optimism about economic recovery and supportive monetary policies.
Concerns about stock valuations being stretched relative to corporate earnings have also emerged, putting pressure on companies to deliver strong financial results. Over 100 companies in the S&P 500 are scheduled to report their quarterly performances this week, including major names like AT&T, Coca-Cola, IBM, General Motors, and Tesla.
The Bank of Canada is expected to announce its latest interest rate decision on Wednesday, with the possibility of a rate cut on the table. In energy markets, both benchmark U.S. crude and Brent crude prices saw slight declines.
Currency markets saw the U.S. dollar strengthening against the Japanese yen, while the euro also edged higher against the dollar.
