Like a meteorite the Chinese stock market, so strong yesterday, crashed today as investors better processed the lack – so far – of detail on the stimulus promises. This could be a harbinger of further weakness in trading of China-exposed assets in London and Europe. Instead Hong Kong is rising in the wake of yesterday's good performance of Nasdaq and his Magnificent Seven Tech. In general, Wall Street closed higher, recovering some of the losses of the previous session as investors shifted their attention to the upcoming data on inflation tomorrow and at the beginning of the third quarter earnings season.
Wall Street Closes Higher, Supported by the Magnificent Seven
As US Treasury yields showed signs of softening, investors moved to technology stocks, while attention continues to be on the interest rate policy of the Fed: for this reason tomorrow's data on consumer prices US will be a key step. According to CME FedWatch, traders have now priced in a nearly 89% probability of a 25 basis point interest rate cut in November. The release of the minutes of the last FOMC meeting.
Even the third quarter earnings are coming into focus, with major banks scheduled to report results this Friday. The estimated earnings growth rate for the S&P 500 is 5%, according to LSEG estimates.
Il Dow Jones rose 0,30% to 42.080,37, the S&P 500 rose 0,97% to 5.751,13, and the Nasdaq Composite rose 1,45% to 18.182,92. Almost all the big names in technology rose, with Nvidia to lead the Magnificent Seven with a +4,05%. But there are also gains for Apple (+ 1,84%), Tesla (+ 1,52%) and Meta (+ 1,39%).
China in sharp decline, while the rest of Asia is supported by tech
The disappointment is strong. The announcement of the stimuli to support of the Chinese economy had raised hopes, but the lack of details at the press conference yesterday has dampened all enthusiasm, even if there are still those who are optimistic, arguing that the press conference of the National Development and Reform Commission was not the right place for a substantial political announcement, while we must wait for the State Council or the Ministry of Finance to have specific details of the stimulus. In any case, today the bags of China They are erasing the gains of the first trading session after the Golden Week break: the CSI 300 index of the Shanghai and Shenzhen price lists loses 5,5%, the largest daily negative change since the outbreak of the COVID19 pandemic. In Beijing, the government does not seem to have stopped thinking about measures to support economic development. China must actively introduce policies that help stabilize growth and expectations, China's national radio, CCTV, reported, citing Premier Li Qiang. In the meeting with economists and entrepreneurs, the head of government promised measures to support struggling businesses and called for the rapid implementation of existing economic measures, CCTV reported.
The index Hang Seng of Hong Kong, After the collapse of the day before, it rebounded by 1%, supported by the resilience of technology stocks. The Nikkei index is rising Tokyo +0,87% and the stock market rises Taiwan, in the wake of the Nasdaq's rise, at +1,45%. The TAIEX index, the benchmark for the stock market of Taipei, gains 0,9%. Stocks move little of India After the central bank of India confirmed its key interest rate at 6,50%, Mumbai's BSE Sensex index rose 0,2%.
La South Korea and India will become part of the main FTSE Russell Global Bond Index next year, while Vietnamese and Greek bonds remain on the waiting list. The announcement comes as overseas interest in Asian debt markets increases, due to falling yields in the United States and Europe. The accession is expected to attract $56 billion in inflows, with fresh funds helping to manage state finances, according to Seoul's finance ministry.
Oil slightly recovers after yesterday's collapse: keep an eye on the ceasefire
WTI at $74,04 per barrel (+0,64%) and Brent at $77,72 per barrel (+0,70%). Yesterday, crude oil prices fell by more than 4% on the possibility of a ceasefire between Hezbollah and Israel, but markets remain wary of a potential Israeli attack on Iranian oil infrastructure.
European stock markets seen little movement
European stock markets are expected to be little moved at the start of the session. The Eurostoxx50 future is in fact marking a -0,02%. US futures are falling (-0,14% for the Dow Jones and -0,24% for the S&P500). The advisor of the ECB, Yannis Stournaras, said in an interview with Financial Times that he favors two interest rate cuts this year and expects further easing in 2025 as inflation continues to fall.
Germany. The trade balance recorded a surplus of 22,5 billion euros in August compared to 16,8 billion the previous month. The figure is better than economists' forecasts, who expected a surplus of around 19 billion. The result is due to an increase in exports of 1,3% to 131,9 billion, which corresponded to a decrease in imports of 3,4% to 109,4 billion compared to last July. On a trend basis, exports remained substantially stable (-0,1%) while imports fell by 3,1%.
Pirelli. Marco Tronchetti Provera further strengthens his position in Pirelli, reaching 25,65% of the capital through his subsidiary Camfin. After having acquired 2,5%, as part of the placement of Brembo's share, Camfin, through its subsidiary Camfin Alternative Assets, acquired a further share of approximately 0,4% of Pirelli, between 3 and 7 October, at a weighted average price between 5,18428 and 5,30899, for a total investment of over 19,8 million euros.
Moncler. LVMH spent 243,4 million to buy into Moncler. This is the amount invested by the French luxury giant to buy 10% of the Double R holding company from Remo Ruffini. The safe holds 15,8% of Moncler, a share that at the current stock market prices of the down jacket group is worth around 2,3 billion. The agreement between Ruffini and Arnault provides that LVMH will finance Double R's rise to 18,5% of Moncler and that LVMH can reach up to 22% of the holding company. Assuming that Double R is debt-free, the price per equivalent share is 56 euros (54,4 euros was the closing price on October 8).
