Daily Digest: Wednesday 16th October
Europe
Today’s headline data print out of Europe was the UKs year-on-year CPI for September, figures came in at 1.7% as inflation falls below the BOEs 2% target. CPI came in 0.2 percentage points lower than analyst expectations, signifying UK inflation had slowed at a sharper rate than expected. This print drastically increases the likelihood of the BOE resuming the rate cutting cycle at their next meet on November 7th. Such a move essentially improves the outlook for London listed equities, as the cost of corporate borrowing and investment falls and economic output accelerates. Traders reacted positively to the print with the FTSE 100 (FTSE) gapping higher off of the open, rising 79.79 points (0.97%) to 8,329.07 by the session close, erasing Tuesday’s losses. The STOXX 600 (STOXX) also experienced a positive turn in momentum following a weak open, as prices rose to 519.60.
USA
Following strong sell offs on Tuesday, US equity momentum picked up as the S&P 500 ($SPX) rose 27.21 points (0.47%) to 5,842.47, the Dow ($INDU) rose 337.28 points (0.79%) to 42,077.70, and the Nasdaq 100 ($NDX) experienced weaker gains rising 14.22 points (0.071%). Tomorrow marks the beginning of the big tech earnings season, as chipmaker Taiwan Semiconductor Manufacturing Company and software service Netflix release their Q3 figures. These calls will likely draw Nvidia back in to the spotlight as analyst continue to revise their 2025 earnings projections.
Rest of the World
As predicted heading into Wednesday, Japanese equities turned to the downside, marking the end of a recent winning streak. The nations benchmark equity index, the Nikkei 225 (¥N225), fell 730.25 points (1.83%) to 39,180.30. Despite market wide sell offs, losses within the tech sector were amplified following Tuesday afternoon’s ASML earnings leak, forcing analysts to revise their forward performance forecasts for chipmakers.
Despite sharp declines on Tuesday, Chinese equities exhibited a positive turn in momentum as the Shanghai Composite (¥SSE) rose 1.66 points (0.052%) to 3,202.95, though weekly losses remain above 2%.
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice