📆 Friday, October 25
► European markets faced slight downward pressure with the Stoxx 600 slipping by over 0.2%, as earnings reports from major firms added mixed sentiment. Sanofi reported Q3 non-GAAP EPS of €2.25 on revenue of €13.44 billion, up 12.3% year-over-year, though shares slipped by 1.5% amid adjusted FY EPS guidance that now reflects a slight currency impact. Meanwhile, luxury brand Remy Cointreau (-0.8%) reduced its annual sales guidance, citing weak demand in the US and China, and energy giant Eni (+0.6%) lowered its profit forecast despite better-than-expected Q3 earnings. France's consumer confidence fell to 94 in October, and Spain reported a 5.2% drop in producer prices. German business climate improved to still low 86.5 up from 85.4 (and also above expectations 85.6). Italian business climate worsened sharply to 85.8 (from 86.6) and came in well below expectations of 87.0.
► S&P 500 futures remained steady, though the index is tracking toward a weekly loss of nearly 1% – its first in seven weeks – as higher Treasury yields curb investor enthusiasm. Rising yields, which gained around 10 basis points this week, have dimmed rate-cut expectations from the Fed beyond the expected November cut, adding to the cautious sentiment ahead of November’s presidential vote. On the corporate front, Tesla’s mega performance (near 22% higher) buoyed the Nasdaq, while weaker earnings from IBM, Honeywell, and Boeing weighed down the Dow Jones. Tesla, however, ist trading 2% lower currently (in pre-market) sharply underperforming Wall Street. Traders are now eyeing next week’s payrolls data for clarity on the Fed’s stance.
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