The Pulse Economic News October 9, 2024

1. Oil and Commodities: Brent crude fell by around 4% to approximately $75 per barrel. The decline was partly due to reports suggesting a potential ceasefire between Israel and Hezbollah, which reduced geopolitical risk. Commodities like copper and gold also experienced downward pressure as China's latest economic support measures fell short of expectations, causing concerns about future demand​(mint)​(Be Invested. Trade globally online.).

2. China's Economy: After reopening from the Golden Week holiday, China's markets reacted negatively to the government's cautious approach to economic support. The Shanghai Composite Index dropped 7% as investors were disappointed with the absence of significant new stimulus. China's National Development and Reform Commission announced some support measures, including issuing CNY 1 trillion special sovereign bonds. Still, these were seen as insufficient to address more profound economic challenges​ (Be Invested. Trade globally online.)​(Be Invested. Trade globally online.).

3. US Market Performance: US equities rebounded strongly, with tech giants leading the charge. The S&P 500 and Nasdaq rose by 1% and 1.5%, respectively, supported by gains in companies like Nvidia. However, investors remain cautious, with attention focused on the upcoming Federal Reserve's FOMC meeting minutes, which could provide insights into future interest rate cuts ​(mint)​(Be Invested. Trade globally online.).

4. Currency and Bond Markets: The US dollar remained near a seven-week high, supported by solid employment data that dampened expectations of aggressive rate cuts. In contrast, Japan's yen weakened, prompting official warnings against speculative movements. US Treasury yields were mixed in bond markets, reflecting ongoing uncertainty about the Fed's policy direction​ (Be Invested. Trade globally online.)​(Be Invested. Trade globally online.).

5. Corporate News: Companies like PepsiCo lowered their revenue forecasts, citing softer demand amid rising health-conscious trends, possibly linked to increased use of weight-loss drugs. Additionally, Taiwan Semiconductor reported strong revenue growth, contributing to market optimism in tech sectors​ (mint)​(Be Invested. Trade globally online.).

These developments illustrate a complex economic landscape shaped by regional divergences, with market participants closely watching central bank actions and geopolitical events.

Sources: Livemint: Oil pares gains, Israel-Iran war impact ​(mint).Saxo: Global Market Quick Take: Asia – October 9, 2024​ (Be Invested. Trade globally online.).Saxo: Global Market Quick Take: Europe – October 9, 2024 ​(Be Invested. Trade globally online.