A huge number of stock exchange events and news, reports and GDP, company news and geopolitics
Stock market news
• Investors will be treated to a full calendar of major releases on Wednesday, from earnings reports from banks and big tech companies to the UK budget, as well as a US private sector employment report and growth data from the US and several major European economies. As if that weren't enough, Bitcoin is approaching a record high, the European Union has decided to raise tariffs on electric vehicles made in China, and recent polls confirm that the US presidential election is just around the corner.
• European stocks opened with a negative trend ahead of various risk events that are likely to affect the market dynamics during the day, the main one being the first budget of the UK Labour government after 14 years of Conservative rule. Growth stocks are rising and Value stocks are falling. Investors are increasing their concentration in fear of a weakening US economy. US government bonds were initially briskly sold again, but after a strong auction to place 7-year Treasuries, all the decline was bought back. Futures are stable in the morning. Nikkei is rising in price and China is falling in price. Gold and Bitcoin have updated historical highs.
• Traders have already sold British shares and government bonds ahead of the event, unsure how Chancellor Rachel Reeves will be able to balance high debt levels, government spending commitments and a pledge not to raise income tax. Sterling was steady around $1.30, although options prices reflected some nervousness about the Budget outcome.
• There are multiple earnings reports today, including from Meta Platforms and Microsoft, which are among the “magnificent seven” of U.S. megacaps. Google parent Alphabet delivered a positive message Tuesday, reporting quarterly revenue that beat estimates. A series of results, including those from Apple and Amazon.com on Thursday, will be critical in determining whether Wall Street can maintain the optimism about tech and artificial intelligence that has driven indexes to record highs this year.
• On the economic front, preliminary third-quarter U.S. growth data released on Wednesday are likely to show that the world's largest economy maintained a robust pace of growth as falling inflation and strong wage growth spurred consumer spending. That is likely to contrast with an increasingly gloomy growth outlook for the eurozone, which has been on the brink of recession for more than a year.
• The euro will fall almost 3% against the dollar in October, which would be the biggest monthly drop since May 2023.
• In Asia, Chinese assets fell significantly on Wednesday as investors braced for a tense U.S. election that could have major implications for China even as Beijing tries to shore up growth. News that China is considering approving more than 10 trillion yuan ($1.4 trillion) in additional bonds over the next few years was overshadowed by the prospect of steep tariffs if Donald Trump wins next week, especially if that is accompanied by a landslide victory for his Republican Party in Congress. China's currency and stocks will bear the brunt of any protectionist moves in the U.S. and are likely to be sensitive to any trade and foreign policy fallout from the election news.
• Boeing raised $21 billion in one of the largest share sales in history, bolstering the company's balance sheet in an attempt to stave off a potential credit downgrade. The U.S. planemaker sold 112.5 million common shares at $143 apiece, priced at a discount of about 8 percent to Friday's closing price of $155. Boeing also sold $5 billion in preferred shares.
BA shares rose 1.5 percent to $153, raising hopes for an upside correction.
• The Washington Post lost 200,000 subscribers after it failed to endorse any U.S. presidential candidates. That figure represents about 8 percent of the paper's paid circulation of about 2.5 million subscribers, including the print edition.
• 10 billion humanoid robots by 2040 at $20-25 thousand each - Elon Musk said at the 8th Future Investment Initiative conference, Elon Musk announced the projected cost and duration of the operation to install the Neuralink implant. According to him, the implant itself could cost $1-2 thousand for mass production, and the robotic operation would last only 10 minutes. The total cost of the procedure could be about $5,000, which is comparable to the cost of LASIK eye surgery.
• Intel has filed a patent for a new GPU architecture that uses individual logic chiplets. This "disaggregated" design should improve scalability, computing power and power efficiency.
• India's central bank is actively buying gold, - Reuters. Gold has again reached a new historical high.
• Apple has announced a tiny Mac Mini. Prices start at $599. Available November 8.
• As of the end of the third quarter, American banks suffered losses from real estate transactions in the amount of $750 billion. This is 7 times more than the total amount during the global financial crisis.
• Moncler sales fell 3% in the third quarter due to weakening global demand.
• OpenAI builds first chip with Broadcom and TSMC, and adds AMD chips along with Nvidia chips to meet its growing infrastructure needs.
• LinkedIn is launching its first AI agent to take on the role of a recruiter: Hiring Assistant, a new product designed to handle a wide range of recruiting tasks.
• Cisco CEO: 2025 is the year our AI will explode Cisco CEO Chuck Robbins promises a steady stream of AI products.
• JPMorgan Chase & Co. was named the top U.S. sell-side research firm in a broad-based investor survey
, reclaiming the top spot it held for most of the survey.
• McDonald's beat third-quarter profit expectations. But Wall Street remains hyper-focused on the recent E. coli outbreak.
• Ford (F) shares fell 8% after the automaker cut its full-year profit forecast, citing high warranty costs and supplier disruptions.
• HSBC (HSBC) shares jumped after its third-quarter profit beat Wall Street forecasts and the bank announced a $3 billion share buyback.
• The World Bank predicts a “historic oil glut,” with prices set to fall in 2025. Such a large oil supply glut has only been seen twice before – during the pandemic lockdowns of 2020 and the 1998 oil price crash.
• Bitcoin has renewed its historical maximum, exceeding $53 thousand. BlackRock's Bitcoin reserves have reached 403,725 BTC, worth a total of almost $27 billion.
According to Lookonchain, over the past two weeks, the world's largest asset manager has acquired 34,085 BTC (approximately $2.3 billion).
• HSBC has removed its head of sustainability from its executive committee.
• Nigeria is ready to use all tools to manage inflation, says c.bank chief
• MSCI reports strong third-quarter profit amid increased demand for financial products.
• PayPal's fourth-quarter guidance is weaker than expected as profit growth overshadows growth.
• Saudi Arabia's first China-focused ETF will be the largest in the Middle East.
• Norwegian sovereign wealth fund buys 98% of US office buildings for $217 million.
• Serendipity Capital appoints outgoing HSBC Europe chief Colin Bell to board.
• Indian lenders are facing rising defaults from over-indebted retail borrowers.
• Santander's Polish unit could pay 100% dividend, CEO says
• Spanish company Mapfre's profits have risen sharply thanks to favourable weather and high prices.
• Oil prices rise as US reserve demand provides support.
• Cruise operators benefit from their own private islands.
• Ahead of the US elections, China is considering adding more than $1.4 trillion in debt over the next few years, sources say.
• Corning forecasts positive quarterly results on robust fiber demand.
• Pfizer's COVID-19 drug delivers strong quarterly profit amid activist unrest
• Stanley Black & Decker reports quarterly sales decline, tightens full-year profit forecast.
• DR Horton forecasts 2025 revenue, housing supply below forecast, stocks down.
• Abu Dhabi's CYVN Holdings enters into non-binding deal to buy McLaren's automotive business.
• Leidos raises full-year forecasts amid strong defense demand
• MSCI reports strong third-quarter profit amid increased demand for financial products.
• Indian IT distributor Redington's profits fall as demand weakens in some markets.
• European Automobile Safety Agency disparages BYD's Atto 3 driver assistance system.
• SoftBank's son says artificial superintelligence will emerge by 2035.
• Coframe raises $9M for websites that optimize themselves with AI.
• Zebra Technologies forecasts positive fourth-quarter earnings on solid demand and cost savings.
• The founder of TikTok owner ByteDance has risen to the top of China's rich list.
• Corning forecasts positive quarterly results on robust fiber demand.
• EU to invest $1.5bn in region's deep tech sector
• Nvidia-backed AI firm Iambic unveils 'breakthrough' in drug discovery
• PayPal Q4 guidance lower than expected as profit growth overshadows growth
• Developer DHI shares fell 7% yesterday. After a good start, PFE shares ended up down 1% yesterday.
• SOFI fell 6% yesterday, while PYPL fell 4%.
• CROX fell 19%, while SWK fell 9%.
• CDNS rose 13%, while FFIV rose 10%.
• BP fell 5%.
• Shares of Trump's social network DJT rose another 9% yesterday, reflecting Trump's rising chances of winning. Trump Media's $10 billion market value puts it on par with Musk's X, the social network formerly known as Twitter, which is now informally valued at $10 billion.
Stocks in the morning premarket after earnings in the morning after earnings:
RDDT +25%
SNAP +11%
GOOG +6%
V +2%
CMG -5%
FSLR -7%
AMD -8%
Key events that could impact markets on Wednesday:
- UK Budget
- Various earnings reports including: UBS Group AG, Volkswagen AG, Airbus SE, Meta Platforms, Microsoft
- France, Germany, Eurozone, US preliminary GDP
- US ADP National Employment Report
Fundamental news
• U.S. consumer confidence rebounded in October. The Conference Board reported Tuesday that its consumer confidence index rose to 108.7 this month from an upwardly revised 99.2 in September.
U.S. job openings fell to their lowest in three and a half years in September, and the previous month's figure was revised down,
indicating significant weakening in the labor market.
• The Israeli parliament bans the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) from operating in Israel. The decision was made after allegations that more than 10% of UNRWA employees in the Gaza Strip are linked to terrorists and that educational institutions under the auspices of the organization constantly incite hatred of Israel and glorify terrorism. "It won't last long." Israel comments on the appointment of a new Hezbollah leader.
• Argentina now imports its own banknotes from China. Argentina's mint underbid China's CBPMC, which is where the tender went - local workers were sent on unpaid leave. Inflation was 209% in September, and despite the attempt to get everyone to use the dollar, demand for the domestic currency is only growing. Argentina's debt has moved out of the danger zone thanks to the Miley reforms. Investors are no longer betting that Argentina is inevitably heading for default as President Javier Miley conquers bond markets with his plans to reshape South America's second-largest economy.
• China is considering approving a new fiscal stimulus package worth more than ¥10 trillion ($1.4 trillion) next week.
• Zhang Yiming, the founder of TikTok-owner ByteDance, has become China's richest man. His personal fortune is $49.3 billion, according to the annual Hurun China Rich List.
• Saudi Arabia's $930 billion sovereign wealth fund will cut international investment by a third. The prince has big building plans in Saudi Arabia itself.