The long-awaited Halloween celebration in the United States is approaching, and with this party it also comes the closing of the month of October for equities. If something has characterized this month it has been the fluctuation in stock market prices on both sides of the Atlantic, since, Since the beginning of the month, the indices have not had a completely clear direction. On Wall Street, its three main indexes have managed to turn their prices around and move into positive territory on a monthly basis due to the positive results of their companies, while in Europe, the indices are struggling to finish colored of green in October.
Even so, the expected start of the earnings season was difficult to digest for both the Old Continent and the New. The debut of ASML and Louis Vuitton, one of the first companies to publish on this side of the Atlantic, disappointed to investors by not meeting the expectations placed on them. Even the chip producer infected its bearish trend with US technology firms.
From Bankinter they explain that last week was a “slight correction in stock markets affected by lackluster business results and after the increases accumulated in previous weeks”, although “some companies did present figures that stood out, such as Lam Research and Tesla in the US and SAP and Iberdrola in Europe”, according to the analysis entity.
However, the Account balance presentations have been the catalyst to put Wall Street indices positive this monthespecially thanks to the 21% advance of teslathe company of Elon Musk surprised the market with their positive data, after several seasons disappointing analysts, in addition in Europe they limited the declines that the stock markets accumulated at the weekly close. In New York, Its main selective stocks are trading in positive territory in the monthly calculation, which leads the Nasdaq 100, given the advance of its firms. The technology stock market rises 1.7% monthly at the close of the European stock market, while the US benchmark index gained 1.1%. Behind is the industrial Dow Joneswhich rises 0.2% in this period.
In Europe, the Italian FTSE Mib continues this upward path on a monthly level, rising 2.6% in this period, while the Dax follows on its rise, with a 1.07% rise in the month. Also in green is the British FTSE 100, which registered 0.3% monthly, and In the last session, the Spanish stock market managed to get into positive territoryrises 0.2% in this period. While the European benchmark index, the EuroStoxx 50, and the French index fell by 0.6% and 1.1% respectively, although the French stock market has managed to position itself in positive territory in 2024.
But in these last days of the month, the publication of more results could be the balance of exchange for equities on both sides of the Atlantic, since they could alter the fortunes of the French Cac 40, the EuroStoxx 50, which are trading with drops at two days until the end of October. While in the US, five of the seven Magnificas will present their results, which takes into account vilo to investors. The dates to mark on the calendar are: this Tuesday, October 29 (accounts of Alphabet), October 30 (results of Goal and Microsoft), October 31 (Apple and amazon). The big tech (along with Nvidia, which presents on November 21 and excluding Tesla, which has already presented) must grow on average by 26% to not disappoint the market, which is waiting for a roadmap for the technology in the coming months.
The tension
However, the market is being especially cautious, with its sights set on the upcoming US elections, just a week away. Although there is still no bet by the markets on a clear winner to govern the White House, in recent weeks polls have shown Donald Trump as the favorite to win the elections. Furthermore, with a scenery background of a war nature in the face of Israel’s latest attacks on Iran, which if escalated could do so again nick in stock market prices.
And, despite the positive start to the month for equities after the announcement of a stimulus package for China’s flagging economy, the sharp escalation of tension in the Middle East changed the turns and scared investors globally; and now it comes back to monopolize attention at the end of the month. Although the stock markets recovered from the increase in tension between Israel and Iran, both due to a new rally of Artificial Intelligence in the United States, the positive outlook for the country’s economic health, as well as the lowering of interest rates by the European Central Bank, renewed the investment spirit.
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