(News Bulletin 247) – Wall Street is expected to be in the red on Tuesday as the rating agency Moody’s placed several American regional banks on negative watch.

Half an hour before the opening, the futures contracts on the major New York indices fell by 0.7% on average, announcing an opening in the red.

Moody’s pinned last night the vulnerability of several medium-sized banking establishments, including some well-known names such as Bank of New York Mellon or US Bancorp.

The rating agency highlights the pressures these banks face in terms of funding, insufficient capital reserves from a regulatory point of view and the risk associated with their exposure to commercial real estate.

Moody’s is following in the footsteps of Fitch, which downgraded the rating assigned to US debt last week, which shows that the issue of debt is back at the center of the debate.

Poor Chinese statistics are also fueling fears of a marked slowdown in global economic growth.

Chinese imports fell 1.1% in the first seven months of the year, suggesting that China’s economic recovery is slipping and global demand is deteriorating.

While the quarterly earnings season is coming to an end, investors have seen a fresh round of quarterly company results.

UPS fell 3% after announcing an adjusted EPS of 2.54 dollars for the second quarter of 2023, 22.8% lower than that of the same period in 2022.

Eli Lilly has raised its forecast for the current year, on the occasion of its quarterly publication.

In the economic chapter, the trade deficit narrowed to 65.5 billion dollars in June, compared to that of 68.3 billion the previous month, according to the Department of Commerce.

Wholesaler stocks will be released in the morning.

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