The end of October has arrived, along with the long-awaited Halloween party for Americans, and equities take more than a scare at the end of the month. European stock markets end the month in redwhile on the other side of the Atlantic only nothing against the current the Nasdaq 100, after attacking its all-time highs this week. This is the worst month so far in 2024 for the European benchmark, the EuroStoxx 50, just two months before the end of the year, due to its 3.5% drop in the monthly calculation. The index suffers the largest decline since August 2023. On both sides of the puddlethe avalanche of business results have not been easy for the stock markets to digest, while the expected presidential elections in the United States are already five days away and after this meeting at the polls the next meeting of the Federal Reserve, which makes investors Be more cautious with your purchases on the stock market.
Although in the middle of this week there was a possibility that the European indices would close the month of October positively, in the end only the Milan index achieves this, recording a 0.5% increase in the monthly balance. On the other hand, the Cac 40 falls almost 4% in the last 31 daysgiven the disappointment that the results of many of its firms have given the market, such as the luxury companies LVMH or the automotive company Renault, among others. This has led the Paris stock market to also decline by almost 3% annually, after having managed to turn positive for the year this month, it remains the selective that performs the worst in 2024.
The European index is the second most bearish of the month, as mentioned previously it falls by 3.5%, which takes the index up to 4,830 pointslosing its first key support, which Ecotrader analyst and strategist Joan Cabrero has indicated, between 4,900 and 4,870 points. But this is not entirely negative, since the expert argues that by losing these levels “we could see a broader consolidation phase, which would be more similar and proportional to the last consolidation phase prior to the August fall.” For the analyst, this would be “good news”, in the event that “this broader consolidation finally forms, which could take the EuroStoxx 50 to the September minimum zone of 4,730 points. I would see that as an opportunity to buy the European stock market again“.
Meanwhile, the Ibex 35 and the German Dax fell 1.3% and 1.7% respectively. Despite the fact that the Spanish stock market recorded its new intraday historical highs this month, the 12,023 points, Finally, it failed to close at these levels and ended the month around 11,680 points. Cabrero explains that “there will be no changes within the bullish situation of the Spanish selective as long as it does not lose that support of 11,560 and 11,600 points, which is the yellow line or support that must be monitored in the short term”, since “everything indicates that “It is a matter of time before the Ibex 35 ends up exceeding 12,000 points, to try to overcome the next obstacle that will be found at 12,240 points.”
The expected start of the long-awaited balance sheet season has been complicated in the Old and New Continent, although in the latter Tesla’s impressive results managed to turn around the price of the Nasdaq and the S&P 500 last Thursday, thanks to its 20% rise after the presentation of its accounts. From there, he began a rally bullish trend for technology companies, which ended on Wednesday due to the falls of AMD and Super Micro on the stock market, and with it the rest of the semiconductor firms.
This week, five of the seven Magnificas were scheduled to present their results, and there are already three: Alphabet has far exceeded market expectations, but Microsoft and Meta have not convinced investors and harm the two major Wall Street indices by European closure. Furthermore, the strength of the US economy has reinforced the market’s view that more interest rates will not come, which along with caution extra before the meeting of Harris and Trump at the polls, has led investors to withdraw positions.
Meanwhile, investors in American equities are waiting for new data from Apple and Amazon and Friday’s unemployment report, which will be presented at the end of Thursday’s session, at the European close, by the technological selective limited its monthly increase to around 1%while the US benchmark, the S&P 500, was more affected and fell slightly on a monthly basis. On the other hand, the industrial Dow Jones lagged behind the European close and lost 1% for the month.
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