China halts EV conquest across Europe, while Tesla stock rallies
- by FXStreet
- Oct 24, 2024
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Equities
Indices [Stoxx600 +0.51% at 521.50, FTSE +0.75% at 8,320.52, DAX +0.53% at 19,486.45, CAC-40 +0.67% at 7,547.97, IBEX-35 +0.21% at 11,890.30, FTSE MIB +0.59% at 34,902.00, SMI +0.40% at 12,205.30, S&P 500 Futures +0.39%].
Market focal points/key themes: European indices open generally higher and advanced through the early part of the session; equities seen getting a boost after flash German PMI outperformed expectations; Israel closed for holiday; among sectors leading the way higher are telecom and consumer discretionary; lagging sectors include industrials and financials; luxury subsector supported following results from Hermes; KKR takes stake in ENI’s Enilive; earnings expected in the upcoming US session include UPS, Honeywell, Southwest, Nasdaq and Vinci.
Equities
- Consumer discretionary: Unilever [UNA.NL] +4.0% (Q3 results, affirms guidance; comments on US consumer), Kering [KER.FR] +2.0% (earnings).
- Consumer staples: Danone [BN.FR] +2.5% (Q3 revenue, notes challenging environment).
- Energy: Equinor [EQNR.NO] +1.5% (Q3 results, beats estimates, extra div, fourth tranche buyback, cuts capex guidance).
- Financials: Barclays [BARC.UK] +4.0% (Q3 results, raises UK unit NII guidance).
- Materials: Anglo American [AAL.UK] +4.5% (production results).
- Industrials: Airbus [AIR.FR] +0.5% (Boeing's striking union rejects wage deal), Renault [RNO.FR] +7.5% (Q3 results, affirms outlook; China reportedly asks automakers to stop EU expansion due to EV tariffs dispute), Michelin [ML.FR] -7.0% (earnings).
- Technology: Dassault Systèmes [DSY.FR] -2.0% (Q3 results, trims guidance), BE Semiconductor [BESI.NL] -3.5% (Q3 results, light Q4 guidance), Siltronic [WAF.DE] +6.5% (Q3 results, beats estimates, raises margin guidance), Atos [ATO.FR] +3.5% (Q3 revenue, update on restructuring and cash position).
- Telecom: Orange [ORA.FR] +1.5% (Q3 results).
Speakers
- ECB’s Centeno (Portugal, dove): ECB was probably behind the curve and should consider steeper rate cuts.
- ECB’s Vasle (Slovenia): No urgency in talking about undershooting inflation target.
- Russia Pres Putin stated at the BRICS Summit that to discuss peaceful settlements of conflicts and Mid-East tensions. Ukraine being used to create strategic threats to Russia. Mid-East settlement should be based on creation of independent Palestine State.
- Russia Econ Min Reshetnikov noted that the domestic economy was showing signs of cooling.
- Poland Central Bank (NBP) Member Dabrowski stated that Q2 was most likely to resume rate cuts.
- Thailand Central Bank (BOT) Dep Gov stated that it aimed to have a neutral policy stance; recent rate cut not the start of an easing cycle.
- China reportedly asks automakers to stop EU expansion due to tariffs.
Currencies/fixed income
- EUR/USD initially stayed below the 1.08 level as ECB members appear diverge on rate path as the 2% inflation target moved within close reach. Mixed PMI readings from France and Germany contributed to a continued clouding of the next ECB rate cut magnitude. Dealers continued to see a lower outlook for the pair as ECB likely to cut rates more than the Fed. Pair just above 1.08 as the mid-session approached.
- GBP/USD was around the mid-1.29 area with focus starting to looks towards next week’s Autumn presentation
USD/JPY moved lower towards 1.52.00 after Japan Fin Min Kato provided some verbal intervention as he noted that saw "one-sided" and rapid moves in FX market; watching FX moves with 'stronger' sense of urgency.
Economic data
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