Daily summary: Markets cautious ahead of tech earnings, oil rebounds on geopolitical risks

8:52 pm 21 October 2024

  • US indices contract at the beginning of the week due to the anticipation of major companies' financial results for Q3 2024. S&P 500 trades 0.3% lower, Nasdaq remains flat, DJIA moves down by 0.7%, and small-cap Russell 2000 slumps by 1.4%
  • European markets also entered the week in the red. French CAC40 loses 0.87%, German DAX trades 0.75% lower, Italian FTSE MIB moves down by 0.64% and British FTSE 100 contracts by 0.37%.
  • SAP, european IT leader in cloud and business services solutions, will release its Q3 2024 results at 9pm GMT. The expectations are high, as the company has been consecutively increasing its revenue month after month, driving its stock up by 54% YTD.
  • Oil gains 1.5% after a week of consecutive losses. Recent assassination attempt on Israel’s prime minister drives up the risk of further escalation of the Middle Eastern conflict, as Israel is currently conducting an airstrike in Lebanon and Gaza.
  • Boeing shares recover around 3% as a tentative deal has been reached with strikers. The offer englobes the 35% pay raise and $7000 ratification bonus.
  • The lower-than-expected PPI in Germany reduces the chances of a hawkish decision by the ECB, which affects the short-lived weakness of the euro after the data reading.  German (Y/Y): -1.4% (est -1.1%; prev -0.8%)
  • The Conference Board's Leading Economic Index (LEI) for the US declined 0.5% in September 2024 to 99.7 vs expected -0.3%, following a 0.3% decline in August.
  • Spirit Airlines Inc. announced an extension of its credit card processing agreement with the U.S. Bank National Association. 
  • The U.S. Treasury market remains a focal point for investors as yields continue to rise, with the 10-year benchmark climbing above 4.11% on Monday. This upward movement comes as market participants await insights from a series of Federal Reserve policymaker speeches scheduled throughout the day
  • USD is the strongest currency today, appreciating against EUR by 0.4% and by 0.1% to CHF. CHF is also a strong currency, losing only to USD.
  • The cryptocurrency market is declining today. Ethereum is down 1.4%, Dogecoin loses 0.4%, and Bitcoin falls 2.1%, to around 67,300 USD.
  • Precious metals are mostly gaining today: gold sets new ATH at 2725 and gains 0.1%, silver is up by 0.7%, while platinum is 0.8% lower.

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