Daily Digest: Wednesday 9th October
Europe
As mentioned on Monday, this week is quiet in terms of any major European data prints, shifting the focus of traders toward growing geopolitical concerns in the Middle East, and the macro picture in the US. During the session, the FTSE 100 (FTSE) rose 53.13 points (0.65%) to 8,243.74, erasing just under half of Tuesday’s losses, while the Pan-European STOXX 600 (STOXX) rose 3.41 points (0.66%) to 520.05.
USA
US Crude inventories expanded for a second consecutive week, increasing by a total of 5.8 million barrels. This increase comes despite a rise in oil prices, with barrels touching the $74.45 level during trading on Wednesday. An increase in reserves indicates that market participants are either attempting to rebuild inventory following a period of drawdowns, or it could signal a decrease in the wider demand for crude, an early indicator of a slowdown in economic output. In terms of equities, performances were stronger through Wednesday as the S&P, Nasdaq, and Dow all extended Tuesday’s gains. The S&P 500 ($SPX) rose 40.91 points (0.71%) to 5,792.04, while the Nasdaq 100 ($NDX) rose 161.08 points (0.8%) to 20,268.86, and the Dow ($INDU) rose a further 431.6 (1.03%) to 42,512, trading just shy of its all time highs of around 42,628.
Rest of the World
Despite poor market performance through the start of the week, Japanese equity momentum picked up through Wednesday with the Nikkei 225 (¥N225) rising 340.42 points (0.87%) to 39,277.96. Political uncertainty has been reintroduced into domestic markets as Japan’s new Prime Minister officially dissolved parliament before the nation’s general election on Sunday the 27th. In principle, an election result in favour of the Liberal Democrats will reinforce the current Prime Ministers rule, after his ascension earlier this month. In China, equities experienced their first pullbacks in around three weeks, the Shanghai Composite (¥SSE) fell 230.92 points (6.62%) to 3,258.86.
What to Watch Tomorrow
US Core CPI (MoM)
US Core CPI (YoY)
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
https://www.halifax.co.uk/assets/pdf/SEPTEMBER-2024-halifax-house-price-index.pdf
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