The war-sparked risk-off sentiment continued to weigh on global stock markets, with Wall Street sinking for the second straight trading day. Nasdaq slumped into correction territory, down 10% from the year-high in July as technology stocks slumped amid mixed earnings results. All the mega-cap tech stocks fell between 1% and 4%. Meta Platforms slid 3.7% as the company warned of softening advertising demands and increased spending on its Reality Labs. Amazon’s stocks jumped before cutting gains in after-hours trading amid mixed earnings results.
On the economic front, the US advanced third-quarter GDP was surprisingly strong, up 4.9% year on year, a jump from 2.1% in the second quarter. The data may keep the Fed on its hawkish policy stance for longer. However, markets are still pricing no more rate hikes amid the Hamas-Israel war as government bond yields slid and the US dollar’s upside momentum eased.
Gold futures were flat but stayed at the recent high of US$1,995 per ounce, while crude oil fell as Israel may pause the plan for a ground invasion of the Gaza Strip. However, natural gas prices climbed for the fourth straight trading day on fears of a further development of geopolitical tensions in the Middle East.
Asian markets are set to open mixed. ASX 200 futures were down 0.23%, Hang Seng Index futures were up 0.46%, and Nikkei 225 futures fell 0.23%.
Price movers:
- 8 out of 11 sectors in the S&P 500 finished lower, with Communication Services and Technologies, leading losses, down 2.58% and 2.17%, respectively. Real Estate outperformed due to a slump in bond yields, up 2.15%. Utilities and Materials were also higher, up 2.15% and 0.72%, respectively.
- Amazon’s shares rose 3% after-hours trading following mixed earnings results. The e-commerce giant’s revenue came to US$143.1 billion, up 13% year on year, the fastest since the third quarter of 2022. The AWS revenue was 23.1 billion, up 12% yearly, but slightly lower than an expected $23.2 billion.
- Intel’s shares jumped more than 7% following better-than-expected third-quarter earnings. The chipmaker beat expectations for both profit and revenue, thanks to cost-cutting measures. However, its revenue posted a seven-consecutive decline to US$14.16 billion.
- USD/JPY rose to a fresh high since October 2022, reaching 150.80 at a point as the BOJ intervened in the surging government bond yield. The bank is set to hold a policy meeting next week when it is expected to keep the ultra-loss monetary policy.
- The Eurodollar bounced off a session low against the US dollar after the ECB paused its rate hike campaign at the back of rising economic risks due to the war and cooling inflation.
Today’s agenda:
- Tokyo Core CPI
- RBNZ Statement of Intent
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
