25 October 2024
The S&P 500 rose 0.2% and Nasdaq advanced 0.8%, with consumer discretionary stocks leading the gains while other major sectors declined. Investors assessed a slew of corporate earnings, including a heavyweight’s positive results, and some upbeat economic data.
US Treasuries rebounded (yields dropped) and yield curve flattened modestly amid recent weaknesses in oil prices, despite some better-than-expected macro prints. 10-year yields shed 4bp to 4.21%.
European stock markets were range-bound on Thursday as investors digested a range of upbeat Q3 earnings. The Euro Stoxx index closed 0.3% higher, led by consumer cyclicals. The German DAX index rose 0.3%, with the French CAC closing 0.1% higher. In the UK, the FTSE-100 closed 0.1% higher.
European government bonds rose (yields fell) as investors increased bets of faster and possibly larger ECB rate cuts. 10-year German yields fell 3bp to 2.27%, with 10-year French yields down 4bp at 2.99%. Meanwhile, in the UK 10-year gilt yields rose 4bp to 4.24%.
Asia stock markets traded mixed but mostly lower on Thursday, tracking US stocks’ overnight losses. Japan’s Nikkei 225 edged up 0.1% after declines in previous sessions, with the upcoming general election still in focus. Korea’s Kospi fell 0.7% amid growing macro concerns after the weaker-than-expected Q3 GDP figures, despite a major chipmaker’s positive results. China’s Shanghai Composite and Hong Kong’s Hang Seng lost 0.7% and 1.3% respectively as investors continued to await more policy support from the Chinese government. Elsewhere, India’s Sensex ended flat.
Crude oil prices edged lower on Thursday as investors continued to assess geopolitical developments in the Middle East and the global demand and supply outlook. WTI crude for December delivery settled 0.8% lower at USD70.2 a barrel.
In the US, the flash composite PMI stays steady, coming out at 54.3 in October, from 54.0 in September, remaining comfortably in expansion territory.
In the UK, the composite PMI edged lower in October at 51.7, from 52.6 in September, remaining in a relatively tight range this year at a level consistent with solid growth.
In the eurozone, the flash composite PMI edged up to 49.7 from 49.6, slightly below the 50 threshold between contraction and expansion territory.
In India, the flash composite PMI rose to 58.6 in October, from 58.3 in September, driven by strong demand in the manufacturing sector.
In Germany, the IFO Business Confidence Index is expected to nudge higher to 85.6 in October, from 85.4 in September.
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