On Thursday, global stock markets showed mixed results, with European equities rising amid encouraging corporate earnings, while Asian markets experienced declines. U.S. indices fell on political uncertainties and expectations of slowed monetary easing. Bond yields fluctuated due to election concerns. In Europe, private sector activity declined for the first time in seven months. Tesla’s surprising profits boosted automotive stocks, while Beiersdorf’s sales growth led to a share increase. European gas prices surged, and gold approached its all-time high.
Global stock markets displayed a mixed performance on Thursday, with European equity markets responding positively to corporate earnings reports while remaining apprehensive ahead of the upcoming US presidential election. As of 07:50 GMT, Paris surged by 0.50%, Frankfurt increased by 0.64%, London climbed by 0.72%, and Milan rose by 0.55%, showcasing European markets leading the charge following a wave of encouraging corporate announcements. In Asian markets, however, there was a downturn: the Hang Seng Index in Hong Kong dipped by 1.25%, while Shanghai and Shenzhen fell by 0.68% and 1.10%, respectively.
Tokyo’s Nikkei index ultimately closed lower, down 0.10%. In the United States, stock indices wrapped up Wednesday’s trading on a negative note: the Dow Jones dipped by 0.96%, the Nasdaq fell by 1.60%, and the broad S&P 500 index saw a decline of 0.92%. Analyst Ipek Ozkardeskaya from Swissquote Bank noted that, “Political uncertainties in the U.S., tensions in the Middle East, and rising expectations for a reduced pace of monetary easing by the Federal Reserve are leading investors to remain cautious.“
Bonds Reacting to Political Climate
At around 07:50 GMT, the yield on ten-year US government bonds was noted at 4.20%, slightly decreased from Wednesday’s closing figure of 4.25%. The impending US presidential election on November 5 has contributed to increased interest rates on US bonds due to the surrounding uncertainties. Analyst Stephen Innes from SPI AM remarked, “Bonds are reacting to the possibility of a Trump victory, with Congress likely supportive of his inflationary policies. The bond market is volatile, and the looming election only intensifies the situation.“
Meanwhile, in Europe, the private sector’s activity faced a contraction in September across the eurozone for the first time in seven months, largely influenced by the conclusion of the Olympic Games effect in France, as reflected in the PMI Flash index released by S&P Global. Christopher Dembik, an investment advisor at Pictet AM, stated, “This emphasizes the stark economic reality: the U.S. is outpacing the rest of the world while the eurozone is experiencing a significant slowdown. Companies heavily reliant on the eurozone are expected to struggle particularly in the fourth quarter and into 2025.“
Automotive Sector Boosted by Tesla’s Performance
Tesla’s recent quarterly results have once again stirred the U.S. market following the close, drawing attention to German automotive stocks. Analyst Andreas Lipkow remarked that Tesla exceeded expectations by announcing a significant increase in third-quarter profits while achieving an all-time low cost per vehicle. Consequently, in Frankfurt, the shares of Porsche rose by 1.91%, Volkswagen climbed by 1.76%, Mercedes increased by 1.53%, and BMW gained 1.35% as of 8 a.m. GMT. Additionally, French automaker Renault saw a substantial gain of 5.49% on the Paris Bourse, bolstered by stronger-than-anticipated third-quarter sales in a challenging automotive market.
Beiersdorf Shows Strong Performance
The cosmetics giant Beiersdorf, known for its Nivea brand, reported a 4% year-on-year increase in sales from January to September and reaffirmed its growth forecast for 2024, expecting a sales rise between 6% and 8%. Beiersdorf’s shares rose by 3.90% in Frankfurt around 08:00 GMT.
European Gas Prices on the Rise
On Wednesday, European gas prices surpassed 42 euros per megawatt-hour (MWh), reaching their highest level since August, attributed to an unexpected disruption in Norwegian production, as per analysts at Energi Danmark. At approximately 07:50 GMT, the Dutch TTF futures contract was priced at 41.95 euros per MWh. In the oil market, both global crude benchmarks experienced gains: North Sea Brent rose by 1.26%, reaching $75.91 per barrel, and West Texas Intermediate (WTI) increased by 1.38%, reaching $71.75 per barrel. Gold prices hit $2,734.48 an ounce, nearing its record high from the previous day, fueled by political uncertainties in the U.S. and geopolitical risks in the Middle East. Moreover, Bitcoin appreciated by