Highlights
On the event calendar for Wednesday: US S&P composite flash PMI figures for September due at 9:45 am ET. Expectations for manufacturing call for 53.6, down slightly from 53.9 in the final August report. Services is seen at 56.0 versus 56.5 in the August final. These numbers would suggest ongoing moderate expansion in both sectors. The reports are also expected to show another month of accelerating input price pressures due to the rebound in energy prices during September.
Separately, markets remain focused on hopes for diplomatic progress as the US and Iran are scheduled to hold direct talks for the first time since June. Oil prices have edged up but remain much lower after falling for several consecutive days on hopes for a breakthrough in the US-Iran standoff and apparent progress in restoring Saudi oil flows.