Global markets rose driven by Nvidia’s strong third quarter earnings. However, the gain was rather limited as U.S. investors were not enthused by Nvidia’s projected slowdown in the fourth quarter. During the week, European and Japanese technology stocks were positive, while the U.S. Department of Justice proposed the breakup of Alphabet’s various businesses in a Federal court. Gold and oil prices have surged driven by rising geopolitical tensions in Europe and the Middle East. Greece will repay loans worth €5 billion ahead of schedule in 2025, driven by its positive economic performance.

Global Updates
  • The MSCI All Country World Index rose this week. European equities were driven higher by the performance of the energy and technology sectors. 
  • The United Kingdom reported a higher-than-expected 2.3% year-on-year CPI inflation in October. Retail Sales contracted by 0.7% in October more than the forecasted 0.3% fall in sales. 
  • Germany reported an 8.8% growth in wages for the third quarter, the highest growth in wages in the country since 1993. The wage growth for Euro Area rose to 5.42% in the same period. 
  • Shares of Seven & i Holdings gained following the news of the $58 billion buyout plans by the Ito family.
  • British manufacturer of health and safety devices Halma posted a higher-than-expected revenue of £1.07 billion and adjusted EBIT of £223 million, which exceeded expectations. 
  • U.S. prosecutors have charged Indian billionaire Gautam Adani with bribery charges. J.P. Morgan reported the credit risk to Indian banks from loan exposure to the Adani Group to be limited.
  • Higher than expected third quarter earnings of Nvidia have positively affected the markets in Taiwan, South Korea and Japan.
U.S. Equity
  • The S&P 500, Dow Jones index & NASDAQ registered slight gains this week. Investors rotated out of big tech towards Utilities, Industrials and Financials due to the possible breakup of Alphabet and projected slowdown in Nvidia earnings.
  • Morgan Stanley strategist Mike Wilson has projected the S&P 500 to touch 6,500 by the end of 2025 driven by lowering of interest rates, strong corporate earnings and resilience of the U.S. economy.
  • U.S. jobless claims fell to a seven-month low of 213,000 claims.
  • Nvidia stock dipped following news of an overheating snag in its new Blackwell chip. Nvidia’s third quarter earnings beat on 81 cents per share. The company’s projected revenue growth of 69.5% for the fourth quarter is the slowest revenue growth expectation over seven quarters, primarily due to supply chain bottlenecks.
  • Snowflake’s revenue rose by 28% to $942 million in the third quarter. The company’s stock gained after raising forecasted revenue to $3.43 billion in 2025 driven by growing opportunities in the public sector.
  • Walmart’s third quarter earnings beat with an adjusted earnings of 58 cents per share and revenue of $169.59 billion. The company raised its projected full year net sales growth to 4.8% to 5.1%.
  • Target stock plunged after the company missed its third-quarter earnings and revenue estimates and lowered the annual earnings guidance to $8.30 to $8.90 adjusted earnings per share.
  • Comcast stock gained since the announced $7 billion spinoff of all its cable networks.
  • The U.S. Department of Justice has proposed the sale of Google’s chrome browser and the divestment of the Android mobile operating system in court to prevent further violations of antitrust laws by the company.
  • Pharmaceutical stocks in the U.S. declined following Robert F. Kennedy Jr.’s nomination for the post of Health Secretary.
  • The perception of a pro-cryptocurrency Trump regime has driven up Bitcoin to a record $97,000, to a consolidated gain of $900 billion.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index was in line this week.
  • The U.S. 10-year Treasury yield dipped slightly to 4.412% and the yield on the 2-year note fell to 4.341% over the week. Yields were weighed down by investors chasing safer havens due to the escalating geopolitical conflicts. 
  • The U.S. Dollar Index rose to a two year high of 107.06 this week.
Sources

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