Marcus Today Pre-Market Podcast – Monday 23rd October

All three major US indices closed sharply lower overnight as unrest in the Middle East, rising yields and mixed earnings weighed on market sentiment. The Dow Jones finished near worst levels, down 287 points (-0.86%). Dow up 12 points at best. Dow down 296 points at worst. S&P 500 fell 1.26%, with all sectors in the red as well as falling below its 200-day moving average, a key level seen as a harbinger for more losses. NASDAQ fell 1.53%. Notable laggards include Apple off 1.5%, Meta down 1.3%, and Tesla fell 3.7%, marking its worst weekly performance since December. Russell 2000 is down 1.29%, while the VIX edged higher 3.6% (up 17.73% for the week). Oil pulled back after hitting $90 a barrel, down 0.26%, while Gold rose 0.29%, up for a second consecutive week on its safe-haven appeal. On the earnings front, American Express fell 5.4% despite posting record levels of revenue and profit for Q3.

In the upcoming week, the focus in the US will be on critical economic data, including the Q3 GDP growth rate, the PCE Price index, and personal income and spending, as well as durable goods orders and PMI readings from S&P Global. Major tech firms like Alphabet, Microsoft, Meta, and Amazon are set to release their earnings reports. Central bank interest rate decisions from the ECB, and Bank of Canada will be key, while economic indicators from Japan, Germany, the Euro Area, and the UK will also be closely watched. On the domestic front, Inflation data out Wednesday and RBA Bullock Speech the following day.

• All sectors lower on the S&P 500 overnight, Energy and Financials dragged, down 1.92%. 
• Copper down 0.61% on sluggish global growth and lack of stimulus from China.
• Base metals are broadly lower despite a weaker USD. Nickel -1.94%, Aluminium -0.23%, Zinc +0.76%, Lead +0.10%, and Tin -1.01%.
• 10Y yield: US 4.907%, Australia 4.730%, and Germany 2.894%.

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