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MORNING BID AMERICAS-Megacaps startled, world bonds on edge

A look at the day ahead in U.S. and worldwide markets from Mike Dolan

Cloudy outlooks from U.S. megacaps Microsoft and Meta integrated with edgy federal government bond markets around the globe to unsettle investors on Thursday, with the most recent U.S. opinion surveys showing next week's presidential election is no inescapable conclusion.

The week's deluge of occasions and data releases continued apace overnight - shaded profits beats from the most recent 2 of the 'Splendid 7' firms, a Bank of Japan policy rate hold and a crumb of convenience for Chinese production.

Europe, meantime, continued to digest above-forecast GDP and inflation updates from Wednesday, with Britain's tax and financial obligation raising budget keeping UK government bonds on edge.

UK 10-year gilt yields strike their greatest in a. year on Thursday, while euro zone equivalents. touched their greatest because July as markets downsized hopes. for a 50 basis point cut in European Central Bank rate of interest. in December.

U.S. Treasuries exceeded by comparison,. handling a minor heading miss on third-quarter GDP that was. offset by robust consumer spending information and big jumps in. private sector payrolls and home sales. Those information teed up. tomorrow's employment report. Before then, Thursday also sees. the release of the Federal Reserve's preferred inflation gauge. from individual usage expenses data (PCE).

However U.S. stock futures have been dragged into the red by. restored stress and anxiety over whether the massive invest in artificial. intelligence by tech giants will deliver rewarding outcomes. going forward, with Microsoft and Meta both. down 4% ahead of today's bell on their over night results.

A 10% earnings-related drop in Advanced Micro Gadgets. on Wednesday and 32% plunge in the shares of Super Micro. Computer, after Ernst & & Young resigned as the business's. accounting professional, both jarred the AI theme more broadly.

With Apple and Amazon reporting after the. bell later on today, S&P 500 and Nasdaq futures were. both down about 1% before the open.

But as Halloween strikes, next week's election draws most of. the oxygen out macro market speculation at this phase.

While financial markets have been leaning to a win for. Republican Politician Donald Trump in current weeks, and even a possible. clean sweep for the celebration in Congress, opinion surveys continue to. show the contest is too close to call and warn versus. early bets.

With nationwide polls neck and neck still, a brand-new CNN survey on. Wednesday revealed Democrat Kamala Harris has a minimal edge over. Trump in swing states Michigan and Wisconsin - with the two connected. in Pennsylvania less than a week before the votes. The poll. revealed Harris leading Trump by 48% to 43% amongst likely voters in. Michigan and by 51% to 45% in Wisconsin.

With Treasuries nervy of what Trump's tax cutting strategies. would do to an already puffed up government deficit, the poll news. appeared to contain recent yield rises - which have also seen. the 'term premium' on holding long-lasting debt over short-dated. paper hit its greatest in practically a year at 23.5 bps.

Other so-called Trump trades also recoiled rather -. shares in Trump Media & & Innovation, Bitcoin and. even gold slipped back while Mexico's peso nudged. up from Thursday's two-year trough.

The dollar was on the back foot after the previous. day's euro gains on the area's GDP release.

The yen strengthened, meantime, as the Bank of Japan. left policy the same amid the domestic political hiatus and the. Nikkei ended lower. The BOJ kept ultra-low. interest rates but said threats surrounding the U.S. economy were. somewhat diminishing, signalling that conditions are falling under. location to raise rate of interest again.

Chinese stocks ended slightly higher on Thursday,. led by home shares, as the country's manufacturing. activities returned to growth in October and traders waited for a. crucial management conference for details on more prospective stimulus. Hong Kong shares shut down.

Euro zone and British shares were lower.

Secret developments that should offer more instructions to U.S. markets later on Thursday:. * US September PCE inflation gauge, weekly jobless claims, Q3. incomes and benefits, October Chicago business studies. * US corporate earnings: Apple, Amazon, Intel, Uber, Comcast,. Amcor, Eastman Chemical, Conocophillips, Merck, Bristol-Myers. Squibb, Regeneron, Cigna, Estee Lauder, Mastercard,. Intercontinental Exchange, Southern, Ingersoll Rand, Borgwarner,. International Paper, Coterra, Juniper Networks, Entergy, Xcel. Energy, Kellanova, Huntington Ingalls, Wills Towers Watson, WW. Grainger, Eaton, Altria, Linde, IDEXX, CMS Energy etc * Bank of England Deputy Guv Sarah Breeden speaks; Dutch. central bank guv Klaas Knot and Bank of Spain governor Jose. Luis Escriva both speak

(source: Reuters)