Asia In Red, European Markets Rise; Crude Oil Prices Increase

On Thursday, October 31st, U.S. markets ended on a lower note. This decline was influenced by Microsoft and Meta discussing rising costs related to artificial intelligence, which could have a negative impact on future earnings. This news significantly affected the overall sentiment for the megacap stocks that have been driving this year’s market rally.

Despite exceeding earnings expectations, shares of both Meta and Microsoft fell. However, other tech giants like Amazon and Apple reported strong quarterly results after the markets closed, thanks in part to their growth in cloud services and iPhone sales.

Economic data from the U.S. showed a decrease in initial jobless claims, which fell by 12,000 to reach 216,000 for the week ending on October 26th. Additionally, the personal consumption expenditure price index rose by 0.2% in September, an increase from the 0.1% rise in August.

Across various sectors in the S&P 500, losses were noted, particularly in information technology, consumer discretionary, and real estate. In contrast, utilities and energy sectors saw gains.

The Dow Jones Industrial Average saw a dip of 0.90%, closing at 41,763.46. The S&P 500 dropped by 1.86%, finishing at 5,705.45, while the Nasdaq Composite experienced a decline of 2.76%, ending at 18,095.15.

Asia Markets Today

• In Japan, the Nikkei 225 index closed down by 2.79%, settling at 38,009.50, affected mainly by losses in the Transportation Equipment, Rubber, and Pharmaceutical sectors.
• Australia's S&P/ASX 200 fell 0.50%, finishing at 8,118.80, similarly influenced by declines in the same sectors.
• The stock markets in India remained closed due to the Diwali Holiday.
• In China, the Shanghai Composite index diminished by 0.22%, closing at 3,272.57, while the Shenzhen CSI 300 slipped 0.03% to finish at 3,890.90.
• Hong Kong’s Hang Seng index, however, saw an increase of 0.93%, closing the session at 20,506.43.

European Market Performance

• As of 06:00 AM ET, the European STOXX 50 index was up by 0.59%.
• Germany’s DAX index rose by 0.56%.
• In France, the CAC index gained 0.52%.
• The U.K.’s FTSE 100 index was also trading higher, showing an increase of 0.56%.

Commodities Update

• Crude Oil, specifically WTI, was trading up by 2.63%, reaching $71.08 per barrel, while Brent crude was up 2.40% at $74.56 per barrel.
• This rise in oil prices followed reports that Iran was preparing a retaliatory strike on Israel from Iraq, alongside expectations that OPEC+ might delay planned production increases.
• Natural Gas saw a slight increase of 0.07%, priced at $2.792.
• Gold was up by 0.34%, trading at $2,758.65, and Silver gained 0.41%, reaching $32.935. Copper also saw a rise of 0.60%, closing at $4.3660.

U.S. Futures Performance

In pre-market activity at 06:00 AM ET, Dow futures were up by 0.27%, S&P 500 futures increased by 0.35%, and Nasdaq 100 futures rose by 0.40%.

Forex Market at 06:00 AM ET

• The U.S. dollar index saw a rise of 0.16%, reaching 104.15. The USD/JPY increased by 0.48% to 152.77, while the USD/AUD climbed 0.26% to 1.5235.
• The dollar remained stable after experiencing its strongest month in two years as investors awaited new U.S. jobs data. The yen softened, losing some recent gains ahead of Japan’s three-day weekend and other significant economic events.

In summary, the U.S. markets faced challenges, while Asia experienced mixed results. Europe, on the other hand, showed positive movements, and commodities, particularly oil, continued to rise amid geopolitical tensions.

Photo by Pavel Bobrovskiy via ShutterstockMarkets, Asia, Commodities