Sujata Ro shows us a glimpse at what lies ahead for the markets today

There is more bad news. Russia has increased its pressure on European gas purchasers, stopping flows to Poland/Bulgaria for not paying in roubles. Expanding to Germany or elsewhere could lead to energy rationing and factory shutdowns, as well as economic stagnation.

Next, Wall Street has seen big drops in markets. Alphabet’s results (NASDAQ) Inc failed to impress, and its share price plunged 6.5%, despite the fact that it was authorized $70 billion more buybacks.

Tesla’s (NASDAQ:), 12% plunge — $126billion market cap — raises questions as to whether Elon Musk is actually able acquire Twitter (NYSE.

However, despite the fact that Asian markets were hit hard by Tuesday’s 4% Nasdaq plunge, U.S. futures and European futures have attempted to recoup some of their losses.

Earnings season was a success, beating expectations. However, it highlights the pressure that companies face from rising costs and consumers tightening their belts.

You can take General Electric (NYSE)’s grumbles regarding inflation due to supply chain disruptions. UPS, the parcel delivery company, warns about the dimming prospects for ecommerce.

The U.S. Conference Board’s Consumer Confidence Index fell further in April. GfK warned that high inflation rates were destroying consumers’ purchasing power.

It continues to be a constant drumbeat for inflation. The first quarter reading for Australia was at its highest level in 20 years, which supports the belief that interest rates will rise next week.

Still some bright spots. From a year before, profits in China’s manufacturing firms rose faster in March than they did last year. The earnings of European banks beat forecasts (mostly).

Is it possible to keep this up? China’s COVID lockdown policies will have a negative impact on the economy as well as company profits. Deutsche Bank and many other banks warned that the Russia conflict could have a negative impact on their full year results.

Looking forward to the earnings: Meta (Facebook-owner) will release the results later in the day. The expectations for a decline of 24% are high.

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On Wednesday, key developments should give more direction to the markets:

– Joint BIS, BoE and ECB virtual two-day conference

-U.S. 30-year mortgage rate/inventories/pending home sales

Auction of 5-year Treasury notes; FRN 2-year U.S.

Policy meeting of the Croatian Central Bank

-European earnings: Credit Suisse (SIX:), SEB, Mercedes, Handelsbanken, LSEG, Puma, WPP (LON:), Glaxo Smith Kline, Persimmon (LON:), Atos, STM, Dassault, Aeroports de Paris, Deutsche Bank (ETR) Delivery Hero Saint Gobain (EPA :).

-U.S. Earnings: Boeing (NYSE:), Harley Davidson, CME,  Kraft Heinz (NASDAQ:), Mattell, Ford, Qualcomm (NASDAQ:), Facebook (NASDAQ:)