📆 Thursday, October 24
► European equities advanced, with the Stoxx 600 rising by 0.6%, bolstered by strong earnings. Barclays posted better-than-expected trading revenue, while Unilever's revenue rose 4.5% in Q3, surpassing forecasts. Germany’s flash PMI showed signs of easing contraction, with the Composite PMI Output Index at 48.4, a two-month high. Services showed growth at 51.4, but manufacturing remained weak despite some improvement. Meanwhile, France's economy continues to contract as the Flash Composite PMI dropped to 47.3, its lowest in nine months, with ongoing political uncertainty and unresolved fiscal challenges weighing on the outlook. The French CAC40 (+0.65%) is boosted by Hermes' strong earnings report (which also pushed other luxury stocks higher) and significant gains of Renault, Stellantis after Tesla's surprisingly strong earnings report. Also German automakers are trading higher.
► U.S. stock futures pointed to gains, lead by Tesla’s stronger-than-expected results, with Nasdaq 100 futures rallying over 0.65%. Tesla surged over 11% in after-hours trading after posting its largest quarterly profit in over a year. Tesla's strong earnings report came as a surprise to analysts, most of whom had remained cautious resulting in Tesla recently suffering significant losses that are now largely reversed. Treasuries gained for the first time this week (= lower yields), while the dollar edged lower. U.S. investors are closely watching the earnings season, with major companies like UPS, American Airlines, and Northrop Grumman set to report. Concerns linger over the pace of Fed policy easing and the overall economic outlook. The upcoming U.S. presidential election remains tight, with Donald Trump and Kamala Harris statistically tied in the key swing states, adding to market uncertainty.
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