📆 Thursday, October 17
► European stocks edged higher with the Stoxx 600 index rising near 0.4%, but gains were limited due to a drop in mining stocks following stimulus measures from China that investors found underwhelming given ongoing deflation in China. Rio Tinto and Glencore fell as iron ore prices slumped. In addition, Nestle and Nokia disappointed investors, falling after missing earnings estimates. The ECB is expected to cut its benchmark interest rate for the second consecutive meeting today, lowering the interest rate to 3.4% (3.25% deposit rate; both lowered by 25-bp). Germany’s DAX gained over 0.4%, supported by broader positive sentiment in Europe, while France’s CAC 40 rebounded from previous losses, and Italy’s FTSE MIB surged to a four-month high.
► U.S. futures gained, with the Nasdaq 100 climbing over 0.5% after Taiwan Semiconductor Manufacturing Co. (TSM) delivered strong Q3 earnings, easing concerns about the semiconductor sector. Investors are focused on the Federal Reserve’s upcoming data releases today, including retail sales and jobless claims, for further guidance on interest rate policy. Financial stocks surged in Wednesday’s session after a strong earnings report from Morgan Stanley. Markets await the release of Netflix earnings later today.
► Asian markets were mixed as China’s underwhelming housing market support weighed on sentiment. The CSI 300 index erased early gains, while Japan’s Nikkei slipped 0.65% due to disappointing trade data, including the first decline in exports in 10 months. Meanwhile, Hong Kong’s Hang Seng index declined over 1%, and Australia’s ASX 200, however, hit a record high, led by gains in banking stocks. Australia’s unemployment rate remained steady at 4.1%, aligning with expectations.
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