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Global stocks take a breather after selloff

➤ Global stocks claw back losses after days of selloffs.

➤ U.S. Treasury expected to say China not a currency manipulator.

➤ Lira in focus amid court hearing of American pastor detained in Turkey.

➤ JPMorgan, Citi, Wells Fargo report third-quarter earnings.

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Wall Street looks set to follow a global pause in the selloff of equities, while earnings season kicks into high gear.

Asian markets shrugged off overnight losses in the U.S., where the S&P 500 shed 2.06% and the Nasdaq Composite closed 1.25% lower. The Shanghai SE Composite index gained 0.91% earlier today following data on China's growing foreign trade surplus, while Hong Kong's Hang Seng added 2.12% and Japan's Nikkei 225 edged 0.46% higher.

In Europe, the FTSE 100 gained 0.86% as of 6:51 a.m. ET, while France's CAC 40 rose 0.69% and Germany's DAX added 0.59%. Futures point to the S&P 500 opening higher, with shares in JPMorgan Chase & Co. up 1.73% at around 7 a.m. in pre-market trading after the bank's third-quarter earnings beat estimates. Citigroup Inc. and Wells Fargo & Co. are also expected to report earnings shortly.

Ten-year Treasury yields added 2 basis points to 3.17%, recovering from yesterday's decline on the back of weaker-than-expected inflation data. Italian government bonds stabilized, with yields at around 3.55%, after parliament approved the government's budget targets, which have sparked concerns from the European Commission. Speakers at the Institute for International Finance's conference in Bali, Indonesia, agreed that markets will play a greater role than the EC to restrain the Italian government's plans to extend fiscal spending.

The dollar strengthened against major peers, with the euro dropping 0.11%, the pound dipping 0.14% and the Japanese yen down 0.12%.

The Turkish lira appreciated 0.54% against the dollar as investors await a court's verdict on whether to let American pastor Andrew Brunson walk free, after his detention in Turkey had prompted the U.S. to impose sanctions, straining diplomatic relations between the two countries. Insiders told NBC News that the White House expects Brunson to be released and returned to the U.S. in the coming days under a deal that includes a softening of economic pressure on Turkey.

"Challenges remain for Turkey but a lifting of U.S. sanctions would be [lira-]positive," strategists at ING Research wrote.

The Chinese yuan depreciated 0.40% against the dollar amid reports that the U.S. Treasury is expected not to brand China as a currency manipulator next week. The South African rand surged 1.05% ahead of an expected sovereign rating decision from Moody's.

Brent crude oil climbed 0.42% to $80.60 per barrel on the ICE Futures Exchange. Gold dropped 0.29% to $1,224.10 per ounce.

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The day ahead:

8:30 a.m. ET — U.S. import and export prices (Econoday consensus: import 0.2% monthly, export 0.3% monthly)

9:30 a.m. ET — U.S. Fed's Charles Evan's speaks

10 a.m. ET — U.S. consumer sentiment (Econoday consensus: 99.5)

12:30 p.m. ET — U.S. Fed's Raphael Bostic speaks

1 p.m. ET — U.S. Baker-Hughes rig count

10:30 p.m. ET — U.S. Fed's Randal Quarles speaks