Stock market sentiment improved, and Asian equities bounced, alongside gains in European and US futures. Earnings reports helped tech stocks to stabilise, ahead of more key US data. The 10-year Treasury yield is up 3.2 bp at 4.88%, after strong GDP numbers yesterday. Eurozone bonds meanwhile continued to find buyers, after the ECB effectively confirmed yesterday that in the central scenario rates have peaked. The schedule for the re-investment of PEPP redemptions was also left untouched, which helped peripherals to outperform and spreads to come in. US economy expanded at its quickest pace in almost 2 years in the latest sign of the country’s economic resilience.
Stock markets: Wall Street close in red for a 2nd session. The US100 has cratered -2.05%. The US500 has dropped -1.28% and is -3.2% lower, with the US30 down -0.77% today and -1.9%. Over the past 5 sessions the indexes are posting declines of -4.75%, -3.2%, and -1.9%, respectively. Today, stock sentiment improved. Asian shares rose after strong Q3 sales at Amazon helped drive a recovery in investor sentiment following weak results from other technology groups earlier in the week. Amazon (+5.36% after hours) sees best profits since 2021. Meta (+0.95% after hours) ad revenue (+23%) fuels blowout Q3, $11.6 billion in profits. Elon Musk just lost $28 billion as Tesla (+1.25% after hours) took a beating. USDIndex has lost altitude slightly to 106.36 after climbing to 106.894, just shy of the 107.000 level from October 3 that was the highest since late 2022. USDJPY is holding the 150.00 level, continuing to test the MoF after finance minister Suzuki warned that authorities were closely watching currency moves “with a sense of urgency.” EURUSD lost ground on the ECB’s stance, trading at 1.0544, though inside the day’s 1.0574 to 1.0524 range. USDCAD remains above at 1.3810 after the BoC’s announcement . GOLD flat but close to 1998 (more than 2-months highs). USOIL recovered to $85 after a fall due to a rise in US crude stockpiles and a climb in the US Dollar.Today: US PCE deflator, personal consumption, University of Michigan sentiment (October), Exxon, Chevron earnings.
Interesting Mover: USDCHF broke descending channel and extends higher for a 4th day in a row.
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Andria Pichidi
Market Analyst
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