Rapid turnaround in the US stock markets

By RockedBuzz 10 Min Read

It didn’t take long to bounce back

The momentum of the American stock markets did not last long, the leading indexes are now turning around, the Dow is still up 0.1 percent, but the S&P 500 has already fallen 0.3 percent, and the Nasdaq is down 0.8 percent.


The USA is rising

American stock markets are rising after the opening, the Dow is up 0.6 percent, while the S&P 500 is up 0.4 percent and the Nasdaq is up 0.2 percent. The mood was favorably influenced by the recent numbers of the major banks, but the decrease in bond yields also had a positive effect.

JP Morgan and Wells Fargo kicked off major financial company flash reports on Friday with higher-than-expected third-quarter earnings and revenue. JP Morgan rose 3.6 percent, while Wells Fargo gained 3.8 percent. Citigroup also gained 2.5 percent after earnings rose.

In parallel with the rise in bank stocks, US government bond yields fell. The 10-year yield decreased by more than 11 basis points to 4.598 percent, while the 2-year government bond yield decreased by almost 5 basis points to 5.02 percent.


No significant improvement

In the afternoon, the mood on the European stock markets remains negative. The fact that the incoming big bank flash reports are developing favorably so far can improve the mood somewhat.

  • Wells Fargo’s third-quarter profit and revenue numbers also exceeded analysts’ expectations. As a result of the news, the shares gained 2.4 percent in pre-opening trading.
  • JP Morgan also beat expectations in terms of revenue and earnings per share. In pre-opening trading, after the initial uncertainty, the exchange rate is already up by 1.1 percent.
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In the meantime, the Hungarian market is holding up relatively well, the BUX is only moderately negative, primarily thanks to the strengthening of Mol, after the oil company’s share price rises along with oil prices.

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The mood is bad

European stocks fell on Friday morning after US inflation data fueled the narrative of longer-term higher interest rates. Mining and oil and gas stocks are among the few holding up well, thanks to rising commodity prices, including oil and copper.

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Small fall in Europe

European stock markets fell in Friday morning trading, although the movements were subdued. The DAX fell by 0.3 percent, while the CAC fell by 0.2 percent and the FTSE 100 stagnated. Meanwhile, the Milan stock exchange started down 0.2 percent, and the Madrid stock exchange fell 0.1 percent.


A smaller fall may occur

What are the current events on the stock exchanges?

  • The leading American stock indexes ended with a fall yesterday, the Dow Jones fell 0.5 percent, the S&P 500 closed down 0.6 percent, while the Nasdaq was down 0.4 percent.
  • The Asian stock markets fell this morning, with the Nikkei down 0.71 percent, the Hang Seng down 2.07 percent, and the CSI 300 down 0.86 percent.
  • Based on the status of the futures indices, the day may start with a moderate fall on the European stock exchanges.
  • The American stock futures indexes are forecasting a rise at the opening of the market, the Dow Jones may open with an increase of 0.11 percent, the S&P 500 may rise by 0.07 percent, while the Nasdaq may rise by 0.05 percent.

What can be expected on the macro front?

There will also be data for the last working day of the week, as the detailed statistics of the industry and the MNB’s preliminary balance sheet will be published today. In the morning, important numbers will also come out in China, primarily related to inflation and foreign trade.

October 9-15, 2023 macro calendar
Hungarian macroeconomics
October9.Monday8:30 a.mKSHForeign tradeaug.
October9.Monday8:30 a.mMNBSecurities statisticsaug.
October9.Monday11:00 a.mPMPreliminary balanceSept.
October10.Tuesday8:30 a.mKSHInflationSept.
October10.Tuesday11:30 a.mAKK3-month dkj auction
October13.Friday8:30 a.mKSHIndustry (detailed)July
October13.Friday8:30 a.mMNBPreliminary statistical balanceSept.
International macroeconomics
October9.MondayUSAColumbus Day
October9.Monday8:00 a.mGerman.Industrial productionaug.
October10.Tuesday10:00 a.mIMFWorld Economic Outlook
October11.Wednesday8:00 a.mGerman.InflationSept.
October11.Wednesday2:30 p.mUSAIndustrial producer pricesSept.
October11.Wednesday20:00USAFed minutes
October12.Thursday1:30 p.mEUECB minutes
October12.Thursday2:30 p.mUSAInflationSept.
October13.Friday3:30 amChinaInflationSept.
October13.Friday5:00 a.mChinaForeign tradeSept.
October13.Friday11:00 a.mEUIndustryaug.
Source: Portfolio collection

What has happened on the stock markets so far?

  • Among the leading American, Asian, European and regional stock indexes this year, the Nasdaq index is at the top with a 38.8 percent shift, the Hang Seng index is the driving force with a 7.8 percent fall.
  • Magyar Telekom’s share performed best among domestic blue chips this year with a 72.6 percent increase, followed by Mol’s paper with a 6.3 percent increase.
  • Among the more important raw materials, the price of WTI has risen by 3.3 percent since the beginning of the year.
More important instruments
Exchange rateOne day1 week1 monthThis year1 year5 years
US stock indices
Dow Jones33,631.14-0.5%1.5%-2.9%1.5%15.1%32.7%
S&P 5004,349.61-0.6%2.1%-2.5%13.3%21.6%57.2%
Nasdaq15 184.1-0.4%3.1%-0.7%38.8%40.8%112.2%
Asian stock indices
Hang Seng18,238.211.9%6.0%1.2%-7.8%9.2%-29.3%
CSI 3003,702.380.9%0.3%-1.5%-4.4%-2.2%16.8%
European stock indices
CAC7 104.53-0.4%1.5%-2.0%9.7%22.1%39.4%
FTSE MIB28,493.350.3%3.6%-0.3%20.2%39.2%48.0%
IBEX9 336-0.3%1.9%-1.3%13.5%28.6%4.9%
Regional stock indices
BUX56 171.26-0.1%1.2%-2.0%28.3%44.7%54.5%
ATX3 166.27-0.1%2.4%0.1%1.3%17.9%-1.1%
Hungarian blue chips
Mol2 766-0.5%-0.9%2.3%6.3%13.5%-6.7%
Magyar Telekom5850.5%3.2%24.7%72.6%108.2%48.5%
Raw materials
Foreign currencies
Government papers
10-year US Treasury yield4.713.0%-0.1%10.3%22.8%20.6%48.6%
10-year German government bond yield2.752.7%-3.6%5.4%7.4%17.5%452.8%
10-year Hungarian government bond yield7.24-1.5%-6.8%2.5%-21.7%-31.4%81.5%
Source: Refinitiv, Portfolio

Cover image source: Shutterstock

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