(Bloomberg) — Stocks were on an upward trajectory this week on the back of unexpectedly strong results in Europe and Tesla Inc.’s strong performance.
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Nasdaq 100 futures rose 0.8% after Tesla posted its first quarterly profit in a year, sending the stock soaring 11% in premarket trading. Europe’s Stoxx 600 index rose 0.5%, supported by strong results from Barclays, Unilever and Hermès. This week, US Treasuries rose every day and the dollar fell.
The rally marks a resumption of the rally that took the S&P 500 index to its 47th all-time high last week. Traders are bracing for more earnings results from major U.S. tech companies, the chaotic U.S. presidential election and the Federal Reserve’s next interest rate decision.
With Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. set to report next week, “I would be hesitant to say we’re done with this earnings season,” said Colin Graham, head of multi-asset strategy at Robeco. “Earnings estimates for this quarter have been significantly lowered than last quarter, and the bar to beat expectations this time around is much lower.”
In Europe, government bonds rose on expectations for interest rate cuts after data showed a downward trend in private sector activity continued for the second month in a row. The purchasing managers’ figures did little to allay fears that the region’s economy is slipping back into stagnation and that the European Central Bank’s chance of cutting interest rates by half a percentage point in December is now a coin toss.
Eurozone private economy fails to grow for second consecutive month
Britain’s gold medal stood out, but it was out of step with the rise of other companies in the same industry. Investors canceled debt amid fears of a flood of new issuance after reports that British Prime Minister Rachel Reeves is considering significantly increasing borrowing capacity in next week’s budget. .
In commodity markets, oil prices rebounded as traders continued to wait for Israel to retaliate against Iran.
Corporate highlights
Barclays recorded a surprise increase in fixed income trading, with its equity traders earning £692m in the same period, beating the average estimate of £688m by analysts compiled by Bloomberg.
Unilever, the soap-to-inventory conglomerate Cube, said Thursday that third-quarter sales rose 4.5%, beating analysts’ expectations of 4.3%.
Abdon’s stock price rose to its highest in 14 months last quarter after customers withdrew money from the company’s equity funds, leading to outflows and highlighting the difficult task facing the company’s new chief executive. recorded a decline in
Hermès sales rose as the Birkin bag maker responded to strong demand for expensive handbags, countering a slowdown in the broader luxury goods market.
Renault SA has confirmed its full-year outlook as it expects the French carmaker to benefit from new models such as the R5 electric car and the latest Dacia sport utility vehicle.
Boeing Co. factory workers have rejected a new labor contract that would increase wages by 35% over four years, dealing a blow to the beleaguered aircraft maker as it overcomes a devastating work stoppage.
story continues
This week’s main events:
U.S. new home sales, unemployment claims, S&P Global Manufacturing and Services PMI, Thursday
UPS, Barclays earnings, Thursday
Fed’s Beth Hammack speaks Thursday
US Durable Goods, University of Michigan Consumer Sentiment, Friday
The main movements in the market are:
stock
As of 6:08 a.m. New York time, S&P 500 futures were up 0.4%.
Nasdaq 100 futures rose 0.8%
Dow Jones Industrial Average futures fell 0.1%.
Stoxx European 600 rose 0.5%
MSCI World Index rose 0.2%
currency
The Bloomberg Dollar Spot Index fell 0.2%.
The euro rose 0.2% to $1.0799.
The British pound rose 0.3% to $1.2964.
The Japanese yen rose 0.5% to 151.96 yen to the dollar.
cryptocurrency
Bitcoin rises 0.5% to $66,897.77
Ether rose 0.4% to $2,523.42
bond
The 10-year Treasury yield fell 5 basis points to 4.19%.
Germany’s 10-year bond yield fell 3 basis points to 2.27%.
The UK 10-year bond yield rose 3 basis points to 4.23%.
merchandise
West Texas Intermediate crude rose 2.1% to $72.24 per barrel.
Spot gold rose 0.8% to $2,736.55 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Chiranjivi Chakraborty and James Hirai.
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