About Author
Hoxton Wealth
October 21, 2024
Welcome to Hoxton Wealth, the new home of Hoxton Capital
Market Updates • October 21, 2024
Markets Last Week - 18/10/2024
Hoxton Blog • Markets Last Week - 18/10/2024
A summary of the latest developments in the global economic markets.
U.S.
Stock Market Performance
The S&P 500 Index advanced, led by utilities and real estate, while energy stocks declined due to a reduction in oil price fears regarding Israeli-Iran tensions. Small-cap and mid-cap indices outperformed the broader market. The Nasdaq Composite surged on Friday, driven by strong earnings from companies like Taiwan Semiconductor Manufacturing and Netflix.
Treasury Yields and Bank Loans
U.S. Treasury yields fluctuated, rising on Thursday but falling on Friday following weaker housing starts and building permits. The bank loan market saw heavy issuance.
Economic Indicators
Retail sales rose 0.4% in September, reflecting strength in consumer spending, while industrial production declined by 0.3%, impacted by natural disasters and a Boeing strike. Jobless claims fell by 19,000 to 241,000 after an earlier spike caused by Hurricane Helene.
Europe
Stock Market Performance
The STOXX Europe 600 Index rose 0.58%, buoyed by the European Central Bank’s (ECB) interest rate cut. Major indexes in Italy, Germany, France, and the UK also posted gains.
ECB Cuts Rates
The ECB lowered its deposit rate to 3.25%, marking its second consecutive cut as part of ongoing efforts to support the economy amid a disinflationary trend. Markets expect further cuts in December.
Eurozone and UK Inflation
Eurozone inflation was revised down to 1.7%, below the ECB’s target, while UK inflation slowed to 1.7%, with wage growth decelerating. This may prompt the Bank of England to cut rates further.
Japan
Stock Market Performance
Japanese stocks fell, with the Nikkei 225 down 1.58% and the TOPIX Index losing 0.64%. Easing inflation raised speculation about slower interest rate hikes by the Bank of Japan (BoJ).
BoJ Policy and Currency Movements
BoJ officials emphasized gradual rate hikes due to uncertainties in global and domestic economic conditions. The yen weakened to the higher end of the JPY 149 range against the U.S. dollar, raising concerns of potential intervention.
Inflation and Exports
Japan’s core CPI eased to 2.4% in September due to energy subsidies, while exports declined by 1.7%, reflecting weak demand from China.
China
Stock Market Performance
Chinese equities rose, supported by central bank measures to address deflation. The Shanghai Composite gained 1.36%, while the CSI 300 rose 0.98%. In contrast, the Hang Seng Index in Hong Kong fell by 2.11%.
Economic Growth
China’s economy grew 4.6% year-over-year in the third quarter, exceeding expectations but remaining below the government’s 5% target. Industrial production and retail sales both showed signs of improvement.
Inflation Trends
Inflation in China cooled to 0.4% in September, while producer prices fell 2.8%, indicating deepening deflationary pressures.
How Can We Help You?
If you would like to speak to one of our advisers, please get in touch today.
Contact Hoxton Wealth
Contact us today to discover how Hoxton Wealth can help you achieve your financial goals. Together, we can build a brighter financial future.
