📆 Thursday, October 31
► European stocks experienced a downtrend, marking the third consecutive day of losses as the Stoxx 600 slipped over 0.8%. French lender BNP Paribas led the declines, dropping over 7% following a weak Q3 earnings report. Additionally, European reacted negatively to more signs of a re-acceleration of inflation in the Eurozone that could impact future European Central Bank decisions on rate cuts. France’s inflation for October rose slightly above expectations to 1.2%, while Germany saw retail sales increase by 1.2% MoM in September, with import prices down by 1.3% YoY. Eurozone inflation YoY (preliminary data) rose back to 2% (from 1.7% in September) and came above the 1.9% expected. Core inflation remained at 2.7% YoY – still above the ECB's 2% target.
► US futures are down, with the Nasdaq contracts falling by more than 0.9%, as unimpressive earnings from Microsoft and Meta (weakness in daily active users) weighed on sentiment. Pre-market losses for Microsoft and Meta, both down abou 4%, contributed significantly to Nasdaq’s decline. The USD Index stayed robust, poised for its largest monthly gain since 2022, as upbeat GDP and jobs data from Wednesday curbed expectations of rapid Fed rate cuts. Amazon and Apple are set to report earnings today, further intensifying market anticipation amid a week of volatility. Focus will also be on US PCE data the Fed's preferred inflation indicator. A re-acceleration of inflation would further weigh on risk sentiment.
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