Markets down on corporate results

On Tuesday American index futures declined along with stocks in Europe as investors weighed corporate results and economic data while awaiting news from the resumption of U.S.-China trade talks. The pound dropped to a two-year low as the possibility of a no-deal Brexit increased.

Investors have a lot to digest this week with trade talks, the Federal Reserve, corporate earnings and U.S. jobs data on their plates. Chinese and American negotiators are kicking off two days of talks in Shanghai on Tuesday. And on Wednesday, the Fed is widely anticipated to ease policy, with most bets on a 25-point cut. Chairman Jerome Powell’s postmeeting press conference will be scoured for clues on the trajectory of U.S. rates as signs of slowing economies put pressure on central banks around the world.

Meanwhile, as corporate reporting season rolls on in the U.S., Europe and Asia, traders will be looking for any evidence pointing to a slowdown. The latest economic data provide food for thought, showing Japan’s factory output fell more than expected in June and the French economy slowed in the second quarter. U.S. consumer spending data Tuesday will add to the picture before Friday’s all-important monthly payrolls numbers.

The Stoxx Europe 600 Index dipped 0.8% as of 6:05 a.m. New York time, the lowest in more than a week on the biggest decrease in two months. Futures on the S&P 500 Index decreased 0.2%. The MSCI All-Country World Index fell 0.1%. The U.K.‘s FTSE 100 Index was little changed.

The euro advanced 0.1% to $1.1151. The British pound dipped 0.3% to $1.2183, the weakest in more than two years. The Japanese yen advanced 0.2% to 108.55 per dollar, the biggest gain in more than a week.

West Texas Intermediate crude increased 1% to $57.42 a barrel, the highest in two weeks. Gold gained 0.1% to $1,428.56 an ounce, the highest in more than a week.