📆 Monday, October 14
► European stocks are little changed, with the Stoxx 600 trading flat. Investors weighed China’s latest fiscal stimulus measures, which sparked skepticism due to the lack of a definitive monetary package. The French CAC40 is trading 0.3% lower, but the German DAX is up 0.25%. The EUR weakened further against the USD, reflecting expectations of a 25-basis point interest rate cut from the European Central Bank (ECB) this Thursday. Concerns about France’s public finances and Germany’s ongoing economic malaise contributed to the cautious tone. Germany’s economy is expected to remain flat throughout 2024, and a Bloomberg survey shows that recession fears are mounting. French bond futures showed little change, while disinflationary pressures and softer activity data have increased the likelihood of ECB action.
► Last Friday, we saw gains across all three major indices supported by strong earnings from major banks. Currently, U.S. stock futures are slightly up (in pre-market) as the earnings season goes into full swing, with major U.S. banks like Citigroup, Goldman Sachs, and Bank of America set to report their results on Tuesday. S&P 500 futures edged higher by 0.2%, while Nasdaq futures remain unchanged. Investors are closely watching these earnings to gauge the strength of the banking sector and the broader economy. The Fed’s signals on inflation and interest rates will be closely monitored this week, especially with retail sales data (THU) and speeches from Fed officials on the horizon.
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