At Friday's close, the Dow Jones Index (US30) increased by 0.12% (+1.23% for the week), while the S&P 500 Index (US500) fell by 0.50% (+0.90% for the week). The NASDAQ Technology Index (US100) closed Friday negative by 1.23% (+0.61% for the week). Strengthening bank and energy stocks on Friday allowed the Dow Jones Industrials to remain in positive territory. Shares of JPMorgan Chase (JPM) and Wells Fargo (WFC) rose after posting better-than-expected third-quarter earnings results. In addition, energy stocks rose after WTI crude oil jumped more than 5%. The broad market was pressured on Friday by fears that the conflict between Israel and Hamas could widen. The Israeli military has called for the evacuation of the northern Gaza Strip in preparation for a possible ground counterterrorism operation in the territory.
Wells Fargo (WFC) shares closed higher by more than 3% after the company reported third-quarter revenue of $20.86 billion, beating the consensus forecast of $20.16 billion. JPMorgan Chase (JPM) closed higher by more than 1% after it reported third-quarter investment banking earnings of $1.61 billion, better than the consensus forecast of $1.48 billion. Shares of BlackRock (BLK) closed down more than 1% after reporting third-quarter assets under management of $9.10 trillion, below the consensus forecast of $9.23 trillion.
The US economic news on Friday was mostly bearish for stocks after the University of Michigan's consumer sentiment index for October fell by 5.1 to a 5-month low of 63.0, weaker than expectations of 67.0. Inflation expectations also rose. The University of Michigan's US inflation sentiment for October unexpectedly rose to 3.8%, exceeding expectations of 3.2%. In addition, five-year inflation expectations rose to 3.0%.
Equity markets in Europe were mostly down on Friday. Germany's DAX (DE40) decreased by 1.55% (week-to-date +0.29%), France's CAC 40 (FR40) lost 1.42% (week-to-date -0.54%) on Friday, Spain's IBEX 35 (ES35) was down by 1.13% (week-to-date +0.52%), and the UK's FTSE 100 (UK100) closed negative by 0.59% (week-to-date -1.40%). Eurozone industrial production rose by 0.6% m/m in August, beating expectations of 0.2% m/m and the strongest increase in 4 months.
Comments from ECB President Lagarde, who stated that "we are seeing a tightening of financing conditions such as we have never seen before," suggest that additional ECB rate hikes may be postponed and the ECB will be assessing the impact of previous rate hikes that are still flowing into the financial system.
Crude oil prices rose more than 5% on concerns that the conflict between Israel and Hamas could spread and disrupt oil supplies in the Middle East. Iran's foreign minister said Hezbollah militants could open a new war front with Israel if the blockade of the Gaza Strip continues.
Asian markets were mostly up last week. Japan's Nikkei 225 (JP225) gained 2.23% for the week, China's FTSE China A50 (CHA50) was down by 0.59% over five trading days, Hong Kong's Hang Seng (HK50) ended the week up by 1.25%, and Australia's ASX 200 (AU200) ended the week positive by 1.39%.
China's exports for September declined by 6.2% y/y, less than expectations of 8.0% y/y. Imports for September declined by 6.2% y/y, less than expectations of 6.3% y/y. China's total financing in September, the broadest measure of credit growth, rose by 4.12 trillion yuan, stronger than expectations of 3.70 trillion yuan. New RMB loans for September rose by 2.31 trillion yuan, weaker than expectations of 2.50 trillion yuan. Investors will be watching a flurry of new economic data from China on Wednesday for signs that the uneven recovery in the world's second-largest economy is stabilizing. However, questions remain about the impact of the country's real estate crisis and how much additional stimulus Beijing may still need to deploy. Economists expect gross domestic product data to point to a modest 4.4% annualized growth, still below Beijing's target of about 5% a year.
S&P 500 (F)(US500) 4,327.78 −21.83 (−0.50%)
Dow Jones (US30) 33,670.29 +39.15 (+0.12%)
DAX (DE40) 15,186.66 −238.37 (−1.55%)
FTSE 100 (UK100) 7,599.60 −45.18 (−0.59%)
USD Index 106.67 +0.07 (+0.07%)
- – Eurozone Trade Balance (m/m) at 12:00 (GMT+3);
- – US NY Empire State Manufacturing Index (m/m) at 15:30 (GMT+3);
- – Canada BoC Business Outlook Survey at 17:30 (GMT+3);
- – US FOMC Member Harker Speaks (m/m) at 17:30 (GMT+3).
by , 2023.10.16
We advise you to get acquainted with the daily forecasts for the major currency pairs.This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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