U.S. investors remained optimistic amid the release of clues on interest rates. Europe had a low mood after data showed industrial output in a driving economy fell. In Australasia, all but NZ indices fell.
A revatilized American stock market looks to keep pushing forward
Investors look to reverse the damage done on the previous session as they await the monthly Labor Department release around total job statistics, with the hopes that these will give signals towards inflation and thus coming interest rates. After ADP reported private sector job increases ahead of expectation, economists wait to confirm their bets on 180,000 jobs added in the previous month. The U.S. 2-year treasury bond yield slumped -2bp to 4.58% while the 10-year added +0bp to 4.13%. The big three benchmarks saw the light, Nasdaq (+1.2%) led the charge, the S&P 500 (+0.7%) followed, the Dow inched +0.1% higher. In stocks, Advanced Micro Devices moved +6.8% higher as Meta, Microsoft, and OpenAI announced the use of their new AI chips, the MI300X. Google took on +5.7% after it launched the advanced AI model Gemini.
Reversed sentiment in Europe, all stocks traded lower
European stocks lost in the last session. Widespread poor sentiment came from data that showed German industrial output fell in October, which further underscored the deteriorating conditions of Europe’s largest economy. The Stoxx 600 lost -0.3% despite expectations that interest rates have peaked, this marked the end of a four-month high for European stocks. Saint-Gobain declined -0.5% after it acquired Menkol Industries Private Limited, a waterproofing systems business in India. Biopharmaceutical company Ipsen SA added +1.5% as it revised sales growth, suggesting at least +7.0% per annum on average. In London, the FTSE 100 shed -0.0%. Future Plc (-19.0%) announced its Chief Financial and Strategy Officer would step down next year. Games Workshop (-11.0%) and DS Smith (-1.2%) both fell after they reported their HY trading update and a decline in pre-tax profit respectively. Contrary, AJ Bell soared +8.4% after it showed higher profit, revenues, and managed assets for FY23.
Australasia turned around for the worse
Asia suffered losses. Japan’s Nikkei 225 (-1.8%) had the worst performance, followed by Hong Kong’s Hang Seng (-0.7%), China’s CSI 300 (-0.2%), Shanghai Composite (-0.1%), and finally Korea’s Kospi (-0.1%). Contrary to the previous session, the ASX 200 shed -0.1% as seven out of 11 sectors were down. Woodside Energy (+0.44%) and Santos (+0.7%) both climbed after they recovered from early losses due to a tumble in crude oil prices. Both companies have also declined to comment on rumoured merger discussions. Macquarie (-1.4%) suffered due to cuts in recommendations and target prices, its earnings forecast decreased. Perpetual took on +6.7% after it was offered a takeover by Washington H. Soul Pattinson, worth AU$3.1 billion, which was later rejected. Across in New Zealand the NZX 50 added +0.3%.
WTI crude and Iron Ore flat, Gold lower
Gold lowered -0.2% to US$2,020.99/oz while iron ore and WTI crude remained unchanged.
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- Business employment data: September qtr 2023 (Stats NZ)