This week's global market update highlights key developments in the United States, Europe, Japan, China, and other markets. The European Central Bank and the Bank of England both cut rates, impacting market movements across regions. Meanwhile, U.S. indexes showed mixed results, and Japan experienced currency fluctuations. China's economic growth exceeded expectations, yet remained below target, while Turkey and Hungary faced their own unique economic challenges.
United States
- The S&P 500 Index advanced, driven by utilities and real estate sectors.
- Energy stocks declined as oil prices fell due to easing geopolitical tensions.
- Small-cap Russell 2000 Index and S&P MidCap 400 Index outperformed.
- Nasdaq Composite rallied on strong AI-related stock performance and positive earnings reports, including Netflix's subscriber growth.
- U.S. Treasuries saw marginal gains with fluctuating bond yields influenced by housing data.
- Consumer spending strengthened with a 0.4% increase in retail sales, while industrial production fell by 0.3% in September.
- Initial jobless claims unexpectedly decreased to 241,000, while those receiving extended benefits slightly increased.
Market Indexes Changes
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 43,275.91 | 412.05 | 14.82% |
| S&P 500 | 5,864.67 | 49.64 | 22.95% |
| Nasdaq Composite | 18,489.55 | 146.62 | 23.17% |
| S&P MidCap 400 | 3,198.21 | 44.62 | 14.98% |
| Russell 2000 | 2,276.09 | 41.68 | 12.28% |
Europe
- The STOXX Europe 600 Index rose by 0.58% following the ECB's rate cut.
- Major stock indexes in Italy, Germany, France, and the UK saw gains.
- ECB cut its key deposit rate to 3.25%, marking a back-to-back reduction.
- Eurozone inflation was revised down to 1.7% for September.
- UK's inflation rate dropped to 1.7%, and wage growth slowed, potentially allowing for further rate cuts by the BoE.
Japan
- Nikkei 225 and TOPIX Index fell, impacted by easing inflation and export declines.
- BoJ officials suggested a gradual pace for potential rate hikes.
- Yen weakened against the U.S. dollar, prompting close monitoring by Japanese authorities.
- Inflation eased with core CPI rising 2.4% year on year in September.
- Exports declined by 1.7% due to weak Chinese demand.
China
- Chinese equities rose with the Shanghai Composite Index gaining 1.36%.
- China's economy expanded 4.6% in Q3, slightly below government targets.
- Industrial production and retail sales showed signs of improvement.
- Inflation cooled to 0.4% in September, with core inflation at its lowest since February 2021.
Other Key Markets
- Turkey: Central bank maintained the policy rate at 50.0%, noting a slowdown in domestic demand.
- Hungary: Forint weakness may lead to stable interest rates for a prolonged period, as indicated by central bank officials.
