➤ Global equities mixed as whistleblower complaint shows Trump sought Ukraine interference.
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➤ Pearson, Imperial Brands shares sink on profit warnings.
U.S. equities posted modest losses as markets opened amid increased political uncertainty in the U.S. following the release of a whistleblower report against President Donald Trump.
The S&P 500 and Nasdaq 100 were down 0.1% and 0.2%, respectively, around 9:30 a.m. ET.
According to the complaint released Sept. 26, Trump used his office to seek Ukraine's interference ahead of the 2020 election, during a phone call that has become a central part of an impeachment inquiry launched by Democrats. Trump asked Ukrainian President Volodymyr Zelensky in July to "look into" allegations involving former Vice President Joe Biden and his son, according to a memorandum of the call.
Separately, the U.S. president told reporters that a U.S.-China trade deal could be signed "sooner than you think" as Beijing starts making big U.S. agricultural purchases, including pork. However, the U.S. moved to impose sanctions on Chinese individuals and companies in relation to Iran, a decision the Chinese Foreign Ministry reportedly condemned.
Trump may focus on securing a trade deal with China to divert attention from his impeachment inquiry and provide a boost to equities, wrote Ipek Ozkardeskaya, senior analyst at the London Capital Group.
In Europe, France's CAC 40 advanced 0.7% and Germany's DAX rose 0.5%. The FTSE 100 added 1.1%, though shares of Pearson PLC and Imperial Brands PLC declined about 14.5% and 10.1%, respectively, on profit warnings.
Reports emerged that the EU is considering import tariffs on more than $4 billion of U.S. goods.
In Asia, the Shanghai SE Composite dipped 0.9%, while Hong Kong's Hang Seng rose 0.4%. Japan's Nikkei 225 edged up 0.1% as the U.S. and Japan announced a partial trade agreement.
In bond markets, U.S. 10-year Treasury yields shed 4 basis points to 1.692% around 9:30 a.m. ET. Yields on German Bunds with the same maturity dropped 1 basis point.
The dollar spot index, which measures the currency against a basket of peers, dropped 0.2% after an unrevised GDP growth print for the second quarter.
St. Louis Fed President James Bullard said the Fed may have to "go a little farther" in easing interest rates this year to guard against downside risks to the U.S. economy.
The euro gained 0.1% against the greenback as data from market research firm GfK showed the German consumer climate index was projected to improve in October, but the risk of a recession could not be ruled out.
Separately, the European Central Bank announced Sabine Lautenschläger will resign from the executive board and governing council Oct. 31, before her official term ends, triggering speculation of whether it had anything to do with the arrival of Christine Lagarde at the helm of the central bank.
The New Zealand dollar climbed 0.8% versus its U.S. counterpart as Reserve Bank of New Zealand Gov. Adrian Orr said the central bank is unlikely to pursue "unconventional" monetary policy tools, a day after the bank decided to hold its official cash rate.
The pound was little changed against the dollar. The Japanese yen appreciated 0.2%.
Among commodities, Brent crude oil declined 1% while gold gained 0.3%.
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The day ahead:
10 a.m. ET - U.S. pending home sales index (Econoday consensus: 0.6%)
10:30 a.m. ET – U.S. EIA natural gas report
11 a.m. ET - Kansas City Fed manufacturing index (Econoday consensus: -3.0)
4:30 p.m. ET – U.S. Fed balance sheet and money supply
9:30 p.m. ET - China industrial profits
