European and US markets rise on positive earnings, while concerns over weak demand in China persist.

From Investing.com: 2024-10-25 01:52:00

Stock indices in Europe and the US rose on Thursday following positive earnings reports from companies such as Hermes, Barclays, Unilever, Renault, Tesla, and UPS. The S&P 500 gained 0.21%, while the Nasdaq rebounded 0.83%. Tesla saw a 22% jump, Kering’s shares rose 1.42%, and SK Hynix reported satisfactory results. In Europe, PMI data showed continued contraction, with concerns over weak demand in China. There is speculation that the ECB may accelerate rate cuts, potentially leading to a 50bp cut in December. The euro may remain under pressure against a stronger dollar outlook.

The euro could see resistance against the dollar, given the potential for rate cuts by the ECB and concerns over political and economic factors in the Eurozone. The euro is holding better against the pound, which remains under pressure amid dovish comments from the Bank of England. In Japan, the yen is holding steady, while risks remain elevated ahead of the election weekend. The Bank of Japan is not expected to hike rates at its next meeting.

In the energy sector, oil prices attempted to breach the 50-DMA but were capped by US inventory data. Risks remain skewed to the upside due to escalating tensions in the Middle East. Selling oil below $70pb may be risky.



Read more at Investing.com: Earnings Drive Gains in European and US Markets Amid Economic Divergence