Big Blue's bad day raises the bar for ASML

• Earnings: ASML, BNY, BlackRock, Johnson & Johnson, Morgan Stanley, United Airlines
• Economics: Eurozone industrial production, U.S. PPI
• Interest rates: Bank of Canada seen holding rates

($1 = 0.8744 euros)

IBM sheds a quarter of its value

"Big Blue" said it had failed to keep pace with the shift in corporate spending from software to data-centre infrastructure.

A projected revenue rise of just 1% put its adjusted earnings-per-share forecast at $2.93 compared with market expectations of $3.02. The result sent IBM's shares down 25%.

South Korea's volatile KOSPI .KS11 shot up 8% in Asia, with a surprise slowdown in U.S. inflation cooling bets on interest rate hikes and giving investors a reason to be cheerful.

Brent crude futures LCOc1 kept over $85 a barrel, though stayed short of fresh peaks as investors wait to see how long the Strait of Hormuz will again be blocked to oil tankers.

Data showed China's economic growth slowed to 4.3% in the first half, short of economists' expectations. Still, there was little reaction, since the theme of export strength and domestic weakness are well worn and because investors hope the slowdown will prompt a bit of a fiscal impulse.

The Bank of Canada is widely expected to hold interest rates steady later on Wednesday.

Europe's most valuable company and the top supplier of chip-making equipment reports on Wednesday with the AI rally getting some speed wobbles.