Megacaps spooked, world bonds on edge
A look at the day ahead in U.S. and global markets from Mike Dolan
Cloudy outlooks from U.S. megacaps Microsoft and Meta combined with edgy government bond markets around the world to unsettle investorson Thursday, with the latest U.S. opinion polls showing next week's presidentialelection is no foregone conclusion.
The week's deluge of events and data releases continued apace overnight - shaded earnings beats from the latest two of the 'Magnificent Seven' firms, a Bank of Japan policy rate hold and a crumb of comfort for Chinese manufacturing.
Europe, meantime, continued to digest above-forecast GDP and inflation updates from Wednesday, with Britain's tax and debt raising budget keeping UK government bonds on edge.
UK 10-year gilt yields GB10YT=RR hit their highest in a year on Thursday, while euro zone equivalents EU10YT=RR touched their highest since July as markets scaled back hopes for a 50 basis point cut in European Central Bank interest rates in December.
U.S. Treasuries US10YT=RR outperformed by comparison, juggling a slight headline miss on third-quarter GDP that was offset by robust consumer spending details and big jumps in private sector payrolls and home sales. Those data teed up tomorrow's employment report. Before then, Thursday also sees the release of the Federal Reserve's favored inflation gauge from personal consumption expenditures data (PCE).
But U.S. stock futures have been dragged into the red by renewed anxiety over whether the massive spend on artificial intelligence by tech giants will deliver profitable results going forward, with Microsoft MSFT.O and Meta META.O both down 4% ahead of today's bell on their overnight results.
A 10% earnings-related drop in Advanced Micro Devices AMD.O on Wednesday and 32% plunge in the shares of Super Micro Computer SMCI.O, after Ernst & Young resigned as the company's accountant, both jarred the AI theme more broadly.
With Apple AAPL.O and Amazon AMZN.O reporting after the bell later today, S&P500 ESc1 and Nasdaq NQcv1 futures were both down about 1% before the open.
But as Halloween hits, next week's election sucks most of the oxygen out macro market speculation at this stage.
While financial markets have been leaning to a win for Republican Donald Trump in recent weeks, and even a possible clean sweep for the party in Congress, opinion polls continue to show the contest is too close to call and caution against premature bets.
With national polls neck and neck still, a new CNN poll on Wednesday showed Democrat Kamala Harris has a marginal edge over Trump in swing states Michigan and Wisconsin - with the two tied in Pennsylvania less than a week before the votes. The poll showed Harris leading Trump by 48% to 43% among likely voters in Michigan and by 51% to 45% in Wisconsin.
With Treasuries nervy of what Trump's tax cutting plans would do to an already bloated government deficit, the poll news appeared to contain recent yield rises - which have also seen the 'term premium' on holding long-term debt over short-dated paper hit its highest in almost a year at 23.5 bps.
Other so-called "Trump trades" also recoiled somewhat - shares in Trump Media & Technology DJT.O, Bitcoin BTC= and even gold XAU= slipped back while Mexico's peso MXN= nudged up from Thursday's two-year trough.
The dollar .DXY was on the back foot after the previous day's euro EUR= gains on the region's GDP release.
The yen JPY= strengthened, meantime, as the Bank of Japan left policy unchanged amid the domestic political hiatus and the Nikkei .N225 ended lower. The BOJ maintained ultra-low interest rates but said risks surrounding the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again.
Chinese stocks .CSI300 ended slightly higher on Thursday, led by property shares, as the country's manufacturing activities returned to growth in October and traders awaited a key leadership meeting for details on more potential stimulus.
Hong Kong .HIS shares closed down.
Euro zone .STOXXE and British .FTSE shares were lower.
Key developments that should provide more direction to U.S. markets later on Thursday:
* US September PCE inflation gauge, weekly jobless claims, Q3 wages and benefits, October Chicago business surveys
* US corporate earnings: Apple, Amazon, Intel, Uber, Comcast, Amcor, Eastman Chemical, Conocophillips, Merck, Bristol-Myers Squibb, Regeneron, Cigna, Estee Lauder, Mastercard, Intercontinental Exchange, Southern, Ingersoll Rand, Borgwarner, International Paper, Coterra, Juniper Networks, Entergy, Xcel Energy, Kellanova, Huntington Ingalls, Wills Towers Watson, WW Grainger, Eaton, Altria, Linde, IDEXX, CMS Energy etc
* Bank of England Deputy Governor Sarah Breeden speaks; Dutch central bank governor Klaas Knot and Bank of Spain governor Jose Luis Escriva both speak
US GDP contributors show strong consumer spending https://reut.rs/4hnuRm5
US ADP private sector payrolls rise double forecasts https://reut.rs/3Yyt0lY
Britain Autumn budget 2024 - Gilt issuance https://reut.rs/4f0FvO3
Better off? Household wealth under different Presidents https://reut.rs/4e7JIhH
Japan's inflation and interest rates https://reut.rs/3YvmSKY
By Mike Dolan,
mike.dolan@thomsonreuters.com
Editing by Toby Chopra
الأصول ذات الصلة
آخر الأخبار
إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
