German Ifo is expected to see another drop and some big earnings are due today including Alphabet and Coca-Cola.

European stock markets are set to open slightly higher this morning, continuing the bullish outlook from yesterday’s session as investors digest quarterly earnings from the banking industry. All ahead of the release of a key guide of German business sentiment.  

The October release of German Ifo business climate indicator is estimated to present another drop in confidence in Europe’s largest economy. At this rate, Germany is headed for a recession as rising prices, energy war with Russia and supply issues are all weighing on its economy.

Investors are expecting the ECB to increase interest rates again on Thursday, however there is a big focus on the corporate earnings as investment banks are reporting this week. Nevertheless, the Dax posted gains of 1.6% yesterday, and some gains on Wall Street as traders assume that signs of an economic slowdown could prompt the Fed to soften its hawkish approach.  

Over in China, Xi Jinping secured his power for a third term adding pressure to several American companies which have operations there.

The latest results of U.S. crude oil inventories from the API are due later in the session. The data is expected show an increase this week after last week’s surprise 1.3-barrel fall.

Key event and earnings today:

• German Ifo Business Climate Indicator (09:00 AM GMT)
• U.S. CB Consumer Confidence (15:00 PM GMT)
• API Weekly Crude Oil Stock (21:30 PM GMT)

Earnings:

• Coca-Cola is set to report an EPS of $0.64 on revenue of $10.53 billion.
• Alphabet is expected to report earnings of $1.28 a share on revenue of $71.34 billion
• UPS is set to report an EPS of $2.86 on revenue of $24.4 billion.

(Sources: investing.com, reuters.com)