Wall Street is poised for a rise, with index futures indicating gains for the Dow, S&P 500, and Nasdaq. European markets show mixed results amidst a busy week for corporate earnings, including major tech companies. Notable events include U.S. inflation data and an employment report. In Europe, Volkswagen’s stock declines after job cuts, while Philips suffers a significant drop due to lowered sales expectations. Oil prices are down as geopolitical tensions in the Middle East subsided, stabilizing supply concerns.
by Pauline Foret
(Reuters) – Wall Street is poised for a rise, while European markets show mixed performance ahead of a week filled with corporate earnings, economic reports, and significant political events. Futures for New York indexes suggest a positive opening, with predictions for a 0.33% increase in the Dow Jones, a 0.38% jump for the Standard & Poor’s 500, and a 0.46% rise for the Nasdaq.
In Paris, the CAC 40 has ticked up by 0.13% to reach 7,507.60 points around noon GMT. Conversely, the DAX in Frankfurt has seen a decline of 0.19%, and the FTSE 100 in London is down by 0.26%.
The pan-European FTSEurofirst 300 index has slipped by 0.17%, while the Eurozone’s EuroStoxx 50 decreased by 0.14%, and the Stoxx 600 edged down by 0.04%.
Though the calendar for today features few economic indicators and earnings reports across the Atlantic, the upcoming days are expected to be notably eventful.
This week, five of the notable ‘Magnificent Seven’ companies are set to release their earnings, starting with Google’s parent company Alphabet on Tuesday, followed by Microsoft and Meta on Wednesday, and wrapping up with Amazon and Apple on Thursday.
Following Tesla’s impressive earnings report last week that propelled its stock up by over 22%, investors are keen to see what the rest of the earnings season will reveal.
Additionally, new employment data is anticipated to provide insights into the US labor market, with the employment report scheduled for release on Friday.
Moreover, inflation figures for September, based on personal consumption expenditures (PCE) — the Federal Reserve’s preferred metric for assessing the US economy — are expected on Thursday.
In Europe, attention is on a forthcoming speech by Luis de Guindos, the vice-president of the European Central Bank, later today.
STOCKS TO WATCH ON WALL STREET
Apple faces restrictions on selling its iPhone 16 in Indonesia due to non-compliance with the nation’s local component regulations, as stated by the Indonesian Ministry of Industry.
Boeing aims to kick off a capital raising program exceeding $15 billion (about 13.87 billion euros) as early as Monday, according to a source familiar with the matter.
EUROPEAN MARKET NEWS
Volkswagen’s stock has dipped 1.13% after announcing extensive layoffs and the closing of three factories in Germany.
Philips has plummeted 17.61% following a revision of its annual sales forecast, negatively impacted by diminishing demand from China.
BOND MARKETS
On a generally quiet day regarding economic data, bond yields are seeing upward movement this Monday.
The yield on ten-year Treasuries increased by 2.6 basis points to 4.2580%, and the two-year yield rose by 1.2 basis points to 4.1097%. Conversely, in Germany, last Friday’s Ifo index data altered the trend.
Ten-year German Bund yields declined by 0.9 basis points to 2.2810%, and the two-year yields also fell by 2.5 basis points to 2.1220%.
CURRENCY MOVEMENT
Influenced by recent economic data from the US and speculation regarding a potential Donald Trump victory in the upcoming presidential election, the dollar has steadied slightly after earlier highs.
The dollar has slipped by 0.04% against a selection of major currencies, while the euro has recovered some losses, gaining 0.21% to $1.0816.
OIL PRICE TRENDS
Oil prices are plummeting on Monday following Israel’s recent attack on Iran, which did not impact the nation’s oil or nuclear infrastructure, hence avoiding any energy supply disruptions.
Brent crude has dropped 5.71% to $71.71 per barrel, while US light crude (West Texas Intermediate, WTI) has decreased by 6.03% to $67.45.
MARKET OVERVIEW
(Note: Some data may experience slight delays)
(Written by Pauline Foret, edited by Augustin Turpin)
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