Market Wrap: European Stocks Rise as Banks Beat Earnings Expectations

📈 Stock Market – Europe

• The session on the Old Continent is proceeding in a moderately positive mood, with major European indices posting gains.

• The British FTSE 100 is rising by nearly 0.7%, the French CAC 40 is up by almost 0.2%, as is the German DAX.

• The Spanish IBEX 35 is recording a symbolic gain.

📊 Macroeconomics

• Inflation in Germany rose in September to 3.3% year-on-year from 2.9% in August, with final data confirming earlier estimates.

• The main driver of the increase was energy prices, which surged by 14.9% year-on-year, while core inflation remained stable at 2.4%.

• Persistent inflationary pressure may strengthen arguments for further monetary policy tightening by the ECB and support market expectations for additional interest rate hikes this year.

🌍 Geopolitical Situation

• The situation in the Middle East remains tense, with Yemen's Houthis threatening the United States with a "swift and painful" response if they join the Saudi offensive against the Iran-backed group.

• Iran announced an agreement with Oman to establish a temporary, safe maritime route between the two countries, while noting that this does not mean reopening the Strait of Hormuz.

• Egypt called on the Houthis to immediately halt attacks on Saudi Arabia and urged a resolution to the conflict through diplomatic channels.

• Donald Trump stated that he does not believe China and Russia are actively supporting Iran, arguing that both nations would have too much to lose.

🛢️ Commodities and Energy

• Rising risk of further conflict escalation contributed to a renewed increase in oil prices, with Brent crude hovering around 105 USD per barrel.

• Gas prices in Europe are rising by nearly 2% (approx. 86 EUR/MWh), driven mainly by disruptions to LNG transport through the Strait of Hormuz linked to the conflict with Iran, as well as unplanned gas infrastructure outages in Norway.

• The situation is exacerbated by low EU gas inventories, standing at around 73% of storage capacity, which is not an optimal level—especially with approaching winter, which could further boost demand and exert upward pressure on prices.

🥇 Precious Metals

• A delicate, cautious optimism is observed in the precious metals market.

• Gold futures are rising by about 0.4% and testing the 4,200 USD level.

• Silver is gaining around 0.2% and is trading at 60.5 USD per ounce.

🏢 Corporate Earnings (USA)

• Goldman Sachs reported Q3 results well above market consensus: earnings per share reached 17.01 USD versus expected 12.86 USD, and revenue hit 18.68 billion USD, topping market forecasts of 16.83 billion USD.

• Wells Fargo generated Q3 earnings per share of 1.87 USD (slightly above consensus of 1.85 USD), but revenue fell short at 21.87 billion USD compared to expected 22.31 billion USD, missing market expectations on top line.

• UnitedHealth published Q3 results above market expectations (earnings per share of 4.69 USD versus 4.12 USD consensus) and raised its adjusted EPS guidance for full-year 2026 to at least 20.50 USD, supporting its stock price.

• JPMorgan Chase recorded Q3 earnings per share of 5.75 USD (versus expected 5.93 USD) and revenue of 50.9 billion USD (against consensus of ~51.23 billion USD); the main disappointment stemmed from weaker fixed income, currencies, and commodities (FICC) trading revenues, triggering a negative market reaction.

🪙 Cryptocurrencies

• Similarly positive sentiment is seen in the crypto asset market.

• Bitcoin gains over 1% and breaks above the 83,000 USD level.

• Ethereum rises by about 0.5% and tests the 2,500 USD level.