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Morning Brief: Global investors pull $1.1 billion from Saudi Arabia

Monday, October 22, 2018

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What to watch today

European indices are mostly rising on Monday as earnings updates continue to roll in and investors await further developments on Brexit negotiations and Italy’s contentious budget. The Dax index in Germany led the main indices higher with a gain of 0.5% in morning trading. This comes after Asian markets surged, with the Shanghai Composite rising by 4.1% over the course of the day. Chinese stocks swung higher based on Beijing’s pledge to support the economy and companies.

Traders will see if the market will find its legs after closing lower in 10 of the last 12 trading sessions. There aren’t any notable market-moving events scheduled for Monday. But earnings season will be kicking into high gear this week. Notable companies reporting earnings include McDonald’s (MCD), 3M (MMM), Caterpillar (CAT), Verizon (VZ), Lockheed Martin (LMT), and Harley-Davidson (HOG) on Tuesday; Microsoft (MSFT), Boeing (BA), UPS (UPS), AT&T (T), Visa (V), Ford (F), AMD (AMD), and Whirlpool (WHR) on Wednesday; Alphabet (GOOGL), Amazon (AMZN), Gilead (GILD), Chipotle (CMG), Merck (MRK), Twitter (TWTR), Altria (MO), Discover Financial (DFS), and Comcast (CMCSA) on Thursday; and Moody’s (MCO), Philips 66 (PSX), Colgate-Palmolive (CL), and Weyerhaeuser (WY) on Friday.

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Top news

Global investors pull $1.1 billion from Saudi Arabia amid Khashoggi ‘murder’ 
Investors around the world have pulled $1.1 billion in funds from Saudi Arabia over the last week over the disappearance of journalist Jamal Khashoggi. According to data from Arqaam Capital, a Middle East investment bank, cited by the Financial Times, since 11 October, the country’s main exchange Tadawul (^TASI.SR) has seen the heavy outflow of cash. [Yahoo Finance]

Chinese stocks rally most since 2016 as state steps up support Chinese stocks jumped the most since March 2016 after top officials moved to shore up the economy and offer support to the struggling private sector. The Shanghai Composite Index surged 4.1% on Monday and extending Friday’s 2.6% gain, after sinking to a four-year low last week. [Bloomberg]

Oil rises above $80, Saudi Arabia plans output increase Oil edged above $80 a barrel on Monday, lifted by nervousness over a worsening diplomatic crisis between Saudi Arabia and the West, just two weeks before U.S. sanctions potentially choke off Iranian crude supplies. Saudi energy minister Khalid al-Falih told Russia’s TASS news agency that his country had no intention of unleashing a 1973-style oil embargo on Western consumers. [Reuters]

Bolton faces tense talks with Russia over nuclear treaty U.S. National Security Adviser John Bolton faces two days of high-tension talks in Moscow beginning Monday after President Donald Trump announced his intention to withdraw from a landmark nuclear weapons treaty. [Associated Press]

Trump’s pre-election tax-cut promise leaves GOP leaders baffled President Donald Trump has promised a new middle-income tax cut plan to land days before the midterm election, a move aimed at boosting his party’s chances of holding its Congressional majorities — yet Republican tax policy-makers know nothing about it. [Bloomberg]

What to Watch: European stocks, Ryanair earnings, Italy’s budget European indices are mostly rising on Monday as earnings updates continue to roll in and investors await further developments on Brexit negotiations and Italy’s contentious budget. The Dax index in Germany led the main indices higher with a gain of 0.5% in morning trading. This comes after Asian markets surged, with the Shanghai Composite rising by 4.1% over the course of the day. Chinese stocks swung higher based on Beijing’s pledge to support the economy and companies. [Yahoo Finance UK]

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.