📆 Friday, November 8
► European markets remained stable, supported by the cross-asset rally in the US, where stocks rallied after another Fed rate cut. However, analysts see some comments on inflation as a potential policy change (as our Chief Analyst Robert Lindner had expected) – although markets initially took his comments on inflation as optimistic that the current reacceleration is only temporary (from Powell's perspective). Wall Street hat been able to hold gains following Trump's clear win in the presidential election. In France, data revealed a widening trade deficit of €8.3B in September, up from €7.7B in the prior month, driven by a 3% decline in exports. Investors are watching China’s potential stimulus measures closely, as these could impact European export demand and trade relations.
► In the US, equity futures are little changed following the Federal Reserve's interest rate cut on Thursday. Calm is returning after a volatile but very strong week for US equities. Lyft (+23%) led the gains yesterday after a strong earnings outlook (tech as a whole performed strongly), while banks, particularly JPMorgan Chase (-4.3%), fell after an analyst downgrade and profit-taking following the disproportionate gains in financials on Wednesday. Federal Reserve Chairman Jerome Powell emphasized the strength of the US economy and labor market and signaled confidence in the economy, while remaining more cautious but still optimistic about inflation trends. Powell left the door open for future rate cuts, but slightly dampened expectations for a December rate cut and pointed to the current stability.
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