On 24 October, 2017 – Positive earnings boosted most global stock indices

Investors are waiting for economic data to be released later in the week.
United States
US stocks touched new record highs Tuesday after strong earnings from Caterpillar and 3M. Investors are in a positive mood thanks to low interest rates and promises of US tax reform from the Trump administration. The Dow Jones industrials were up 0.8 percent, the S&P added 0.1 percent while the Nasdaq was 0.2 percent higher.
Better-than-expected earnings results from Caterpillar and 3M among others, helped support stocks after they had declined on Monday. 3M jumped after the company reported profit and revenue that exceeded expectations, while also raising its outlook. Caterpillar also gained after the company posted stronger-than-expected revenue and profit growth and boosted its outlook for the year. GM reported stronger-than-expected earnings, reaffirmed its full-year earnings forecast and promised to slash stocks of unsold vehicles. McDonald’s also rose following results. Offsetting some of the day’s gains, Biogen slipped after disappointing US sales of a potential blockbuster drug. Whirlpool tumbled after the home appliances maker reported profit and sales below estimates and lowered full-year earnings guidance.
After US markets closed for the day, AT&T reported third quarter sales that missed expectations Tuesday as a series of natural disasters in the US and Mexico hurt its results. Chipotle Mexican Grill reported a smaller-than-expected rise in sales at established restaurants, hurt by mixed reviews of its new queso side dish and a Norovirus outbreak that forced the brief closure of a Virginia restaurant in July.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$1.55 to US$1,276.45. Copper futures were up 0.4 percent to US$3.20. WTI spot crude was up 56 US cents to US$52.46. Dated Brent spot crude was up 97 US cents to US$58.34. The US dollar was up against the yen, pound, Swiss franc and the Canadian and Australian dollars. It was lower against the euro. The Dollar Index was up 0.1 percent. The yield on the US Treasury 30 year bond was up 3 basis points to 2.41 percent. The 10 year note was up 4 basis points to 2.41 percent.
European markets
European stocks were mixed Tuesday. There was an outpouring of mixed corporate earnings results. Traders remained cautious before Thursday’s monetary policy decision from the European Central Bank. The FTSE was up 2.09 points while the CAC and DAX each added 0.1 percent. The SMI retreated 0.6 percent.
BASF declined after its oil & gas division posted a slight decrease in earnings. Commerzbank rallied after the Financial Times reported that the German bank has hired advisers to defend itself against potential takeover bids from European rivals including BNP Paribas. Covestro jumped after the plastic materials manufacturer decided to buy back shares worth a maximum notional amount of €1.5 billion or up to 10 percent of the outstanding capital stock. Aixtron rallied 2 after the Committee on Foreign Investment in the United States approved the sale of ALD and CVD memory product line.
Essilor climbed after confirming its 2017 outlook. Carmat advanced after the company announced that the first international implantation of its bioprosthetic artificial heart had been performed at the National Research Center for Cardiac Surgery in Astana, Kazakhstan. Whitbread dropped after the company reported slowing sales growth at its Costa coffee stores. Admiral Group retreated on a broker downgrade. Logitech International tumbled in Zurich despite delivering another strong quarter of growth. Novartis retreated after delaying a possible spinoff of its Alcon eye care business until the first half of 2019. Apple supplier AMS jumped after its fourth quarter guidance came in well above consensus.
Eurozone October flash composite PMI declined to 55.9 from 56.7 a month ago. Germany’s flash composite was 56.9, down from 57.8 in September while the reading for France was 57.5, up from 57.2.
Asia Pacific
Asian stocks finished mostly higher Tuesday as the yen was steady, oil prices inched higher and China’s ruling Communist Party voted to endorse a second five-year term for 64-year old President Xi Jinping, now the country’s most powerful leader since Mao Zedong. The Shanghai Composite was up 0.2 percent while the Hang Seng declined 0.5 percent.
The Nikkei was up 0.5 percent and the Topix added 0.7 percent as shares extended gains for a 16th consecutive session thanks to a weaker yen and amid relief over the Bank of Japan policies. Exporters and banks led the surge. Yaskawa Electric declined after the company unveiled its first-half earnings. Toyota, Murata and Nintendo advanced. Flash manufacturing PMI for October slipped to 52.5 from 52.6 in September.
Both the S&P/ASX and All Ordinaries were 0.1 percent higher. Strong metal prices boosted miners, offsetting losses in the financial sector. BHP Billiton and Rio Tinto along with Fortescue Metals Group and South32 were higher. Gold miners Newcrest and Regis and Northern Star climbed as gold edged up on a softer dollar. The big four banks finished flat to marginally lower and Woolworths retreated. Energy stocks also ended slightly lower despite crude oil prices edging higher overnight.
The Kospi was up 0.44 point. The Sensex added 0.3 percent.
Looking forward
Australia posts third quarter consumer price index. Germany releases October Ifo survey. The UK reports its first estimate of third quarter gross domestic product. The Bank of Canada publishes its monetary policy decision and its Monetary Policy Report. In the US, September durable goods orders and the FHFA house price index will be released.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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