📆 Friday, October 18
► European stocks extended gains as traders reacted to solid US retail sales data and yesterday's ECB rate cut. The Stoxx 600 index edged higher by over 0.25%, supported by gains in mining stocks fueled by improved economic data from China. Yesterday, the ECB’s decision to cut rates by 25 basis points to 3.25% was in line with expectations but helped markets to edge further up while the EUR extended its recent decline. UK retail sales unexpectedly rose by 0.3% in September, strengthening the pound and adding pressure on UK bonds as the Bank of England may hold off on further rate cuts. The German DAX index rose 0.15%, hitting a fresh record, while France’s CAC 40 gained even more than 0.5%.
► US futures showed gains as traders weighed the impact of stronger-than-expected retail sales data, which cast doubt on further rate cuts by the Federal Reserve. S&P 500 futures are currently up 0.15%, while the Nasdaq 100 is up around 0.4%. Treasury yields steadied following Thursday’s sharp rise, reflecting strong consumer spending that continues to support the US economy. Investors remain focused on the Fed’s future rate path amid positive economic data, such as the retail sales boost and strong employment figures.
► Asian markets had a mixed session as investors digested China's latest GDP and industrial production data. China’s Q3 GDP grew by 4.6% Y/Y, above estimates but still below the government’s 5% target. In Japan, inflation slowed to 2.5% in September, which eased market pressures. The Nikkei 225 rose 0.1%, while Hong Kong’s Hang Seng index gained over 3%, reversing losses from the previous session.
Subscribe to see more
