London morning: S&P 500 up 0.28%, Nikkei 225 gains 0.85%, EUR/USD at 1.1220

The S&P 500 closed at 7712.57 on Tuesday, Oct. 20, a gain of 21.84 points or 0.28% from the previous close of 7690.73. The Nasdaq 100 ended the same session lower, at 29490.28.

What happened

On Wall Street, the S&P 500 finished the New York session at 7712.57. The previous close was 7690.73, so the index added 21.84 points, or 0.28%. The reading is as of 16:00 New York time on Oct. 20.

The Nasdaq 100 moved the other way. It closed at 29490.28, down 39.06 points, or -0.13%, from 29529.34. The two main US benchmarks therefore ended the day with different results: one higher, one lower.

In Asia, the Nikkei 225 stood at 64621.24 at 15:25 Tokyo time on Oct. 21. That is 545.82 points, or 0.85%, above the previous close of 64075.42. It showed the largest percentage move among the equity indexes in this morning's data.

In currency markets, EUR/USD traded at 1.1220 at 07:00 UTC, which is 08:00 in London. The pair was down 0.0020, or -0.17%, from the previous close of 1.1240. In other words, one euro buys slightly fewer dollars than it did at the previous close.

Why it matters

The US close and the Asian session set the starting point for European trading. London and other European exchanges open after a day in which the two main US equity indexes did not move together. The S&P 500 rose by 0.28%, while the Nasdaq 100 fell by -0.13%, so both changes were small and pointed in opposite directions.

The Nikkei 225 level gives context for the Asian session. The index stood well above its prior close of 64075.42 at the latest reading, taken at 15:25 local time. The gain of 0.85% was larger than any move seen in the US indexes.

The euro's move matters for companies and investors with exposure to both the euro and the dollar. A lower EUR/USD rate means a euro converts into fewer dollars than at the previous close of 1.1240. The change of -0.17% is a quote taken at 07:00 UTC, so it is a level at this hour and can change as European trading begins.

Together, the four readings give a compact picture of where markets stand before the European session. US equities ended Tuesday with mixed results, Japanese equities were higher during their own session, and the euro was softer against the dollar.

What to watch next

The first reference point is the European open, when local exchanges start their sessions and the first prices of the day appear. The Italian Stock Exchange session runs from 09:00 to 17:30 Rome time. Rome is one hour ahead of London, so the Italian market opens at 08:00 London time.

Market participants will also follow whether the Nasdaq 100 and the S&P 500 keep diverging when the New York session opens later today. The reference closes are 29490.28 for the Nasdaq 100 and 7712.57 for the S&P 500. The Nikkei 225 will be compared with its next close in Tokyo, against the 64621.24 reading noted here.

In foreign exchange, the EUR/USD quote of 1.1220 is the level from which today's moves are measured. The pair's path during the European session will show whether the move of -0.0020 seen before the open continues or reverses. No scheduled economic releases are included in this morning's data, so price action in these four instruments is the main guide available at this hour.