Markets closed mixed on Friday after positive economic data from China boosted Asian markets, while most markets in the West fell after data from the US reinforced the view that the US Federal Reserve could keep interest rates higher for longer. “A softer fall in China's industrial profits during the first nine months of the year encouraged sentiment, as monthly figures grew for the second straight month in September, amid signs of a stabilizing economy on the back of fiscal and monetary support,” reported Trading Economics. This caused the Japanese Nikkei to close up by 1.39%, the Chinese Shanghai rose by 0.99% while the Hang Seng jumped by 2.08%.
Fresh corporate results and better-than-expected US PCE data caused the Nasdaq and S&P500 to trade in the green, while the Dow traded down at 18h30 on Friday. “The Fed's preferred core PCE price index rose in line with forecasts, while personal spending topped estimates, reinforcing the narrative that interest rates will stay elevated for longer…Shares of Amazon (NASDAQ:AMZN) surged about 6% after beating on earnings and supported by bullish comments around artificial intelligence. Intel (NASDAQ:INTC) added about 9% after the company topped profit and sales estimates. On the other hand, Ford (NYSE:F) lost about 6% after missing quarterly estimates and lowering its guidance due to the UAW strike. Chevron (NYSE:CVX) was down more than 5% as earnings fell below estimates but revenue beat. Exxon Mobil (NYSE:XOM) lost less than 1% as the company's earnings and revenue disappointed,” Trading Economics added.
Losses in the financial, industrial, retail and telecommunication sectors caused the local bourse to close down by 0.68% on Friday, while the rand firmed slightly trading at R18.81/USD at 18h30.
Disappointing corporate earnings caused markets in Europe to close in the red before the weekend. According to Trading Economics: “Covestro and MTU Aero Engines both reported third-quarter revenues that fell short of market expectations. Meanwhile, France's Sanofi (EPA:SASY) and Air France-KLM (EPA:AIRF) also disappointed with results that didn't meet the anticipated consensus, while British lender NatWest downgraded its full-year profit outlook.”
Gold traded at $1 981.15 an ounce at 18h30, while Brent crude exchanged hands at $88.64 a barrel.
