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Market Update
Source: Newsmaker.id
European stock markets saw limited movement on Thursday (October 29), with investors exercising caution ahead of the European Central Bank’s (ECB) interest rate decision. The STOXX 600 remained flat, while the DAX, CAC 40, and FTSE 100 posted marginal gains as the market focused on the future direction of monetary policy.
The ECB is expected to keep its deposit rate unchanged at 2.50%. Nevertheless, investors will be closely monitoring comments from Christine Lagarde, particularly given that oil prices remain high and there is ongoing market speculation regarding a potential rate hike in December.
Market attention is also fixed on US PCE data, following the Federal Reserve’s decision to maintain interest rates in the 3.75%–4% range. With a lack of clear guidance from Kevin Warsh regarding the Fed’s next policy moves, inflation data has taken on added significance. Core PCE is projected to rise by 0.3% month-on-month, an acceleration from the previous period.
On the corporate front, earnings from European firms have been mixed. Shell shares rose after the company reported profits that beat expectations and announced an expansion of its share buyback program. Conversely, Volkswagen saw a sharp decline in operating profit, weighing on its stock.
The technology sector is also under scrutiny, following Alphabet’s results, which sparked concerns regarding the scale of AI-related spending and its impact on cash flow. Microsoft recently posted strong results, driven by growth in its cloud business. Investors are now awaiting reports from Amazon and Intel, while shares of European semiconductor equipment suppliers—such as ASML, ASM International, and BE Semiconductor—have come under pressure. (srh)
Source: Newsmaker.id