📆 Wednesday, October 16
► European stocks slid as the luxury sector's earnings and a tech-led slump weighed on the markets. The Stoxx 600 fell by over 0.3%, with chip giant ASML continuing its downward trend after its profit warning, dragging the semiconductor sector. Luxury brands like LVMH and Salvatore Ferragamo dropped sharply by as much as 7%, following weaker-than-expected earnings. The GBP fell sharply (currently -0.6%) after inflation in the UK fell more sharply than forecast, surprising investors who had recently been betting on a rising GBP again. Bets on interest rate cuts by the Bank of England have now increased – our chief analyst had already predicted this development at the beginning of the week.
► U.S. stock futures showed minimal movement after Tuesday’s selloff driven by sharp losses from semiconductor companies. S&P 500 futures traded flat, while Nasdaq futures gained slightly, with investors turning their attention to economic data including retail sales (THU) and speeches from several Federal Reserve officials. Treasury yields edged lower as investors braced for further economic guidance. Atlanta Fed President Raphael Bostic hinted at possible bumps in inflation's downward path now mirroring what SmartTrader Chief Analyst Robert Lindner saw as major headache for the Fed while maintaining a cautiously optimistic outlook on the economy.
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