► Global stocks were pressured by increasing Middle East tensions and economic data hinting that central banks may need to intensify inflation control measures. The cancellation of a planned summit between President Joe Biden and Arab leaders, following a tragic Gaza hospital attack, added to the apprehension. At least 500 people died in the attack on the hospital.
► Europe's Stoxx 600 are trading little changed recovering from a weak opening. GBP rose after some weakness yesterday due to UK inflation exceeding expectations. Inflation remained at 6.7% in September. Despite a decrease in some sectors, a rebound in energy costs kept inflation high. This brings the possibility of another rate hike from the Bank of England back into view – although energy prices have cooled significantly since September highs.
► Mixed results were observed in the U.S. at closing on Tuesday. We also saw strong US retail sales and industrial production data last month, which confirmed the strength of the American consumer. Leading banks like Goldman Sachs, JPMorgan Chase, and Morgan Stanley revised their Q3 GDP projections upward. Additionally, Nvidia experienced a sharp drop after the US implemented strict export controls, limiting China's access to high-end computer chips. The new regulations have targeted Nvidia's premium chips, and as a result, the company's shares fell by 7.8% (!). Currently, US stock futures see a decline, trading 0.2% lower for both S&P 500 and Nasdaq.
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