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Wall Street rallies ahead of major earnings reports

US equities closed higher on Monday as investors positioned themselves for a series of key earnings reports from major financial institutions due on Tuesday. Asian markets showed mixed reactions Tuesday, with Chinese stocks sliding after disappointing trade data, while Japanese equities surged. European markets also closed higher on Monday, with traders eyeing the European Central Bank’s rate decision on Thursday.

Date
Auteur
Shane Strowmatt, LGT
Temps de lecture
5 minutes

Market chart
© Shutterstock

US equities moved higher on Monday, as investors were looking ahead with expectations of solid earnings reports from major US financial institutions such as Bank of America, Charles Swab, Citigroup and Goldman Sachs on Tuesday. The Dow Jones Industrial Average climbed 0.5% to 43,065.22 points, while the S&P 500 increased 0.8% to 5859.85 points. The tech-heavy Nasdaq-100 also saw gains, rising 0.8% to 20,439.05 points, finishing the day just below its record high from three months ago. Nvidia stock shot up 2.4%, boosting its market value to USD 3.4 trillion and making it the second most valuable company on Wall Street, to hit its highest value ever during trading on Monday. Bitcoin’s surge to around USD 65,600 helped Coinbase stock to a gain of more than 11% on Monday.

China trade data misses expectations

China's exports increased by 2.4% in September from a year ago, while imports rose by 0.3%, according to customs data released on Monday. These figures fell short of analysts' expectations, which had anticipated a 6% rise in exports and a 0.9% increase in imports. Recent trade tensions and a real estate slump have dampened economic momentum, but heightened fiscal spending may help boost demand in the short term.

Chinese equity markets were the only major Asian markets in the red on Tuesday. Mainland China’s CSI 300 was down 0.9%, and Hong Kong’s Hang Seng Index dropped 1.6%. Japan’s Nikkei 225 was trading 1.3% higher, hitting a three-month high during the session, while Korea’s Kospi edged up 0.3%. Australia’s S&P/ASX 200 was up 0.8%.

Swiss producer and import prices decline

The Swiss Producer and Import Price Index decreased by 0.1% in September 2024, reaching 107.2 points, according to the Federal Statistical Office. This decline was driven mainly by lower prices for petroleum products. Compared to September 2023, the index fell by 1.3%. While prices for petroleum and natural gas, as well as food products, increased, scrap prices and several imported goods, including motor vehicles and textiles, saw notable price reductions. Last month, the Swiss National Bank (SNB) cut interest rates by a quarter of a percentage point to 1%, noting inflationary pressures in Switzerland have eased considerably compared to the previous quarter, thanks in part to the appreciation of the franc and lower oil prices.

The Swiss Market Index outpaced European equities on Monday, surging 0.9%. Other European stock indices also posted gains, with the STOXX Europe 600 advancing 0.5%, while Germany’s DAX rose 0.7% and France’s CAC 40 increased by 0.3%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Bank of America, Charles Schwab, Citigroup, Goldman Sachs, Johnson & Johnson, State Street, Sulzer, and UnitedHealth.

Economic data in focus: UK unemployment rate (08:00), French Consumer Price Index (08:45), ECB Bank Lending Survey (10:00), euro-area Industrial Production (11:00), German ZEW Indicator of Economic Sentiment (11:05), Canadian Consumer Price Index (14:30), Empire State Manufacturing Index (14:30).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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