LIVE MARKETS STOXX ticks up to record high

STOXX flat after hitting record highOil stocks top fallers as crude slidesEyes on Fed plans to taper stimulusU.S. stock index futures mutedNov 3 – Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.comSTOXX TICKS UP TO RECORD HIGH (0847 GMT)After yesterday’s record close it took very little for the STOXX 600 (.STOXX) to reach another lifetime peak in early deals, even though markets are likely to remain muted ahead of the Fed and as investors digest a mix bag of Q3 updates.The pan-European equity benchmark was last little changed as a bounce in mining stocks was offset by a nearly 2% drop in energy stocks on falling crude prices. The overall picture was mixed, as you can see in the snapshot:snapshot(Danilo Masoni)****JUDGEMENT DAY FOR THE FED (0758 GMT)One of the most anticipated market events of the year is here.The U.S. Federal Reserve is expected on Wednesday to detail plans to end its pandemic-era bond purchases by mid-2022 with a $15 billion per month “taper” broadly priced in.What will be more decisive for traders is whether Chair Jerome Powell sticks to the view of transitional inflation based on one-time effects such as supply chains shortages or signals that these factors will have a more persistent and sustainable effect on inflation.If he leans towards the latter, money markets which are already pricing in an astonishing 80 basis points of rate hikes by the end-2022, would get a further boost. That would increase pressure on policymakers to advance their projection for a first rate increase from 2023.But even if the Fed manages to strike a delicate balancing act, the greenback is likely to hold on to a sizeable chunk of 2021’s near 4.5% gain for another year, according to a Reuters poll. That’s because of a widening rate differentials versus its rivals.Equity markets, which have been largely impervious to the fireworks in bond markets in recent weeks, could take a tumble meanwhile if yields resume their rise again.Ahead of the Fed decision, U.S. stock futures are drifting lower and European stock futures are consolidating gains. Risk appetite is slightly on the back foot as new locally transmitted COVID-19 cases in China spiked to a near three-month high and Premier Li Keqiang warned of downward pressure on the economy.Benchmark yields on 10-year U.S. debt is holding well below last week’s highs while stock and currency market volatility, though slightly higher, remain pinned near 2021 lows.Elsewhere, oil prices fell as industry data pointed to a big build up in U.S. oil stocks and pressure mounted on oil producing group OPEC to increase supply.Key developments that should provide more direction to markets on Wednesday:- Central bank speaker corner: Lagarde, Centeno, Villeroy- Credit Suisse to tighten the reins after string of scandals read more – Composite PMIs: UK, U.S.- ADP private payrolls- Lufthansa returns to profit as travel curbs ease, Online fashion retailer Zalando’s profit falls read more (Saikat Chatterjee)*****EUROPE SEEN EASING, AWAITING THE FED (0727 GMT)European shares look set to open slightly lower as investors await the Federal Reserve to outline plans to taper its massive $120 billion monthly bond-buying programme.Following a mixed session in Asia and a record close yesterday, futures on main European benchmarks are trading between flat and a fall of 0.2%.Company results are likely to drive single stock moves from Lufthansa (LHAG.DE), which returned to profit as travel curbs eased, to BMW (BMWG.DE), which beat profit forecasts as higher prices and EV sales helped it offset lower deliveries. read more Here are SOME more early earnings headlines:Strong demand for diabetes and obesity drugs lifts Novo Nordisk earnings read more Online fashion retailer Zalando’s profit dips as in-store sales rebound read more Vestas Q3 below expectations; lowers FY profit guidance read more Telefonica Deutschland ups 2021 guidance, partners with Lebara read more OC Oerlikon posts higher quarterly earnings, warns of supply chain disruptions read more (Danilo Masoni)*****Our Standards: The Thomson Reuters Trust Principles.