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Indices from the Asia-Pacific region record declines, extending the strong sell-off in the U.S. stock market. The biggest losses are seen in Chinese indices, down around 1.00-1.20%, the Korean KOSPI index is down 0.45%, the Japanese Nikkei 225 is trading flat, while the Australian AUS200 is gaining 0.15%.
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The declines in the U.S. market yesterday turned out to be the largest since the beginning of September. The Nasdaq (US100) lost more than 1.60%, and the SP500 (US500) closed 0.90% lower. The losses were partially reduced by the end of the session.
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Today, the sentiment is slightly better, and we are observing a slight rebound in U.S. futures. Good moods may be supported by much better-than-expected quarterly results from Tesla (TSLA.US), which gained 12% after the session closed. Although Tesla’s sales were lower than expected ($25.18 billion vs. $25.43 billion), EPS surprised positively ($0.72 vs. $0.60).
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Yesterday, IBM (IBM.US) also reported results after the session. However, the company's results did not surprise the markets, and the stock fell by 2.50% in after-hours trading. The sell-off occurred despite an EPS result that was higher than expected ($2.30 vs. $2.22). However, this was not enough to surpass investors’ high expectations. Revenues were slightly below consensus ($14.97 billion vs. $15.05 billion).
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Australia’s manufacturing sector continues to struggle, with the PMI Manufacturing index falling slightly from 46.7 in September to 46.6 in October, reaching its lowest level in over four years. On the other hand, the situation in the services sector, which accounts for over 80% of the country’s economic output, is more positive. The PMI for services rose from 50.5 to 50.6, with new business activity increasing to its highest level since May.
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Japan’s PMI report for manufacturing also fell short of expectations, coming in at 49.0 points (expectations were 49.9; previous reading was 49.7), and the services PMI was 49.3 (previously 49.6). Factory activity contracted for the fourth consecutive month, and new orders declined in both the manufacturing and services sectors.
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South Korea’s GDP report showed close to zero economic growth in the third quarter of this year. Preliminary data indicated a 0.1% growth, compared to expectations of 0.5%. The symbolic GDP growth was supported by consumer and government spending.
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Oil (OIL.WTI) is gaining 1.00% today, rising to $71.70 per barrel, recovering from yesterday’s losses caused by an increase in inventories after the EIA report. The rise in oil prices is driven by concerns related to the conflict in the Middle East. On Wednesday, Israeli forces struck southern Beirut.
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In the cryptocurrency market, we are seeing a slight rebound after yesterday’s dynamic declines. Bitcoin's price is returning to $67,300, gaining 1.15% today. Ethereum is up 1.30% to $2,550.
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