- Yesterday's losses on Wall Street were neutralized following comments from Jerome Powell, who hinted at the possibility of concluding the balance sheet reduction (Quantitative Tightening) in the near term.
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Powell suggested that a sharp slowdown in hiring poses a growing risk to the US economy, reinforcing the potential for further interest rate cuts. He simultaneously stressed the overall stability of the US economy.
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The US100 surpassed 25,000 points today, currently gaining 0.6%, with the US500 up 0.35%.
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Gains were fuelled by strong bank earnings, particularly in trading and investment banking.
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Morgan Stanley significantly beat expectations across the board (EPS $2.80 vs. expected $2.09), with the stock rising 5.5%.
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Bank of America also outperformed (EPS $1.06 vs. expected $0.95), with shares up 4%.
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European markets rallied, led by the CAC40's nearly 2% surge, driven by political stabilization in France (narrowing of the France-Germany yield spread).
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Luxury giant LVMH reported revenue of $18.28 billion, halting the negative earnings trend with unexpected sales growth in the US and Asia; shares gained as much as 13%.
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Strong results and a promising outlook from semiconductor equipment maker ASML also boosted sentiment, with the stock rising 2.6%.
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Gold reached new absolute historical highs, exceeding $4,200 per ounce, raising concerns about a speculative bubble after a 60% YTD gain.
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WTI Crude continued its decline, falling below $58 a barrel, amid forecasts of an extreme supply surplus exceeding 4 million barrels per day next year.
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The NY Empire State Index surprisingly posted a positive reading of 10.7 (vs. expected −1.4).
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Inflation in France and Spain rose as expected, easing pressure on the ECB to cut rates this year; the Euro gained against the Dollar.
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Cocoa stabilized above $5,800 despite negative processing data from Malaysia and Brazil; key European and Asian grind data are due tomorrow.
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Fed's Miran suggested that AI-driven productivity gains should allow rate cuts toward the neutral rate, while Waller warned AI could impact the labour market.
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China's CPI fell more sharply than expected MoM (−0.3%), reflecting subdued demand, although core CPI rose 1%, its highest since February 2024.
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Inflation in Poland remained at 2.9% YoY, keeping the possibility of another rate cut this year open.
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Bitcoin continued its sharp slide, falling to $110,000.
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TSMC's Q3 results are due tomorrow morning, with expectations pointing to a record quarter before stabilization.
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