Global markets experienced a blend of optimism and uncertainty on Monday, October 28th, with US markets driven by anticipation for a wave of earnings reports from major tech companies. Investors were particularly focused on the potential for increased AI spending and 2024 capital expenditure plans, leading to gains in key stocks like Alphabet, Meta, and Apple ahead of their earnings releases.
While the US markets celebrated positive economic data, showing a rebound in Texas’ manufacturing activity, Asian markets presented a mixed picture. Japan’s Nikkei 225 closed higher, driven by gains in the Pharmaceutical Industry, Automobiles & Parts, and Precision Instruments sectors. Australia’s S&P/ASX 200 also saw growth, led by gains in the Gold, Consumer Discretionary, and IT sectors. However, China’s Shanghai Composite and Shenzhen CSI 300 both experienced declines, while Hong Kong’s Hang Seng index managed a modest gain.
The European STOXX 50 index opened higher, with Germany’s DAX, France’s CAC, and the UK’s FTSE 100 all trading in positive territory. These markets are likely influenced by the anticipation of US tech earnings and overall economic stability.
In the commodities market, crude oil prices rebounded after a significant drop in the previous session, supported by a US plan to purchase oil for the Strategic Petroleum Reserve. However, concerns about weak demand growth and potential Middle East escalation continue to weigh on prices. Natural gas prices fell, while precious metals like gold and silver saw modest increases.
Looking ahead, investors will be closely watching key US economic data releases, including the upcoming jobs report, for further insights into the health of the global economy. With a mix of positive and negative factors influencing global markets, the coming days are likely to see continued volatility as investors assess the impact of key economic indicators and corporate earnings.
