Asian and US Stock Exchange

That's the general outlook on Wall Street at the moment as investors continue to claw back some of this year's losses - US stocks on Monday shrugged off sharp declines in Asia, especially China, to extend the bear market rally of the past two weeks.

The S&P 500 rebounded nearly 9% from its October 13 low, laughing in the face of rising bond yields and interest rate expectations. Monday's gains came despite recessionary US PMIs and the VIX volatility index rising above 30. Investors have many more reasons to be cautious: liquidity and financial stability concerns; political, economic and market trends in China; Japan's policy conundrum and foreign exchange market interventions; political and market turmoil in the UK. News flow, especially from Asia, is not conducive to a 'risk-on' trading environment. The benchmark indices of MSCI Asia ex-Japan and China fell to their post-2020 lows on Monday and the offshore yuan hit its lowest level since its introduction in 2010. You can't bet against Asian and US stock markets continuing to drift apart. However, a relative bright spot could be US earnings. So far, almost a fifth of S&P 500 companies have reported. According to Refinitiv data, 75% of them have beaten expectations. The Q3 reporting season gains momentum this week with results from tech giants and tech-heavy firms such as Twitter, Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta Platforms and Amazon.com (NASDAQ:AMZN). These results in particular could be crucial if the recovery on Wall Street is to continue and spill over into Asia. (Chart: Tesla (NASDAQ:TSLA), Nasdaq & FAANGs) Important developments on Tuesday that may give more direction to the markets: China Foreign Direct Investment (September) South Korean consumer sentiment (October) US house prices (August) US consumer confidence (October) US earnings Source: investing.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!