WEAK CORPORATE EARNINGS DRAG INDEXES DOWN

Global MSCI Index fell 0.2% yesterday as most of quarterly reports missed estimates. Oil continued to edge lower despite insignificant decline in US crude inventories.

Asian stocks indicated a negative trend during the morning trading session: Japanese Nikkei225 fell 0.50% on weaker reports from Nintendo and Canon; Hong Kong’s HSI was 1.15% lower.

European stocks ended the day in red. The Stoxx Europe 600 Index fell 0.3% during the day and was more than 6% lower year-to-date. The corporate reports disappointed with weak earnings and cautious guidance, including German Bayer. At the end of the day the German DAX30 fell 0.44%, the French CAC40 fell 0.14% while the British FSTE100 lost 0.85%.

US benchmarks were mostly lower The Dow Index managed to edge higher on Boeing (BA, +4.7%) rally, while Apple fell 2.2% after disappointing report. Macroeconomic data was mixed: trade balance deficit declined to $56.1 billion ($60.5 estimated), new home annual sales rose to 593 thousand (601 thousand estimated). On Wednesday trading session the Dow Jones edged higher by 0.17%, the S&P500 slipped 0.17%, and the hi-tech Nasdaq Composite lost 0.63%.

As of this morning euro rose to 1.0899 in EURUSD. British Pound strengthened to 1.2211 in GBPUSD. Yen was depreciated against dollar at 104.47 in USDJPY. The Bloomberg Dollar Spot Index added 0.2% against 10 major peers yesterday.

WTI crude oil fell to $49.27, while benchmark Brent fell to $50.08. US Crude oil inventories fell 0.6 million barrels while 2 million barrels growth forecasted. Gold on COMEX fell to $1,267.70 per ounce. Crops showed a positive trend: wheat advanced to $413.50 per bushel and corn rose to $354.75 per bushel.

Thursday outlook (October 27)

The initial UK 3Q GDP reading is due at 11:30. The durable goods report and weekly jobless claims report are released in US at 15:30.

Analytics Department

Beehive Analytical is a leading investment advisory company in Europe that provides informational, analytical, educational, legal and marketing services for institutional players of financial markets – commercial banks, investment and brokerage companies, and private investors.

Zurich City Center
Dreikönigstrasse 31A, CH-8002
Zurich 123317
e-mail: info@bhva.ch

This release was published on openPR.