Pre-Market Report – Monday 14 October: US markets strong, China disappoints

US equities ended the week on a high note with the Dow rising 410 points (+0.97%) and the S&P 500 climbing 35 points (+0.61%) to hit record highs fuelled by strong financial sector performance after upbeat earnings from banks. The NASDAQ rose 0.33%, and small caps Russell 2000 outperformed rising over 2%. Financial stocks led the rally, with the S&P 500 Banks index jumping 4.2%, while the KBW regional bank index climbed 3.3% hitting its highest level since April 2022. For the week, the S&P 500 gained 1.11%, while the Dow climbed 1.21%, and the NASDAQ also rose 1.13%, marking the fifth consecutive weekly gain for all three indices. US final PPI was unchanged up 1.8% YonY, the smallest gain in 7 months reinforcing views of a favourable inflation outlook. Results support expectations of a 25bps rate cut by the Fed next month, with a 95.6% probability according to CME FedWatch.

ASS SPI up 46 - China disappoints over the weekend.

COMMODITIES

• BP says weak refining margins to dent Q3 profit as fuel demand stalls.
• Oil settles down on Florida fuel demand worries, Mideast risk drives weekly gains.
• Libya's National Oil Corporation restores oil production to levels before c.bank crisis.
• Gold extends gains over 1% as US PPI data solidifies rate cut hopes.
• Aluminium rises on Guinea raw material supply concerns.

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