The USA has imposed sanctions on the Russian oil companies Rosneft and Lukoil. French President Macron is calling for the EU’s strongest trade instrument, the so-called “Anti-Coercion Instrument”, to be used against China if no agreement is reached on export controls for critical raw materials. In Germany, the economy surprised positively: the purchasing managers’ index rose to 53.8 points in October. Companies such as Netflix, Nokia and Tesla also published their quarterly figures.
Global stock market – Positive week and a new all-time high in the Dow Jones®
Positive week for the DAX®: On Friday afternoon, the leading German index was around 1% above the closing price of the previous week. In the USA, the Dow Jones reached a new all-time high and, like the S&P 500®, was around 1% above the previous week’s close on Thursday evening. Only the Nasdaq-100 Index® was almost unchanged on Thursday evening compared to the previous week.
What happened on a political level?
US President Trump has imposed sanctions on the largest Russian oil companies Rosneft and Lukoil, banning any economic cooperation with these companies. Additionally, he halted all trade talks with Canada after an advertising campaign funded by Ontario criticized his tariff plan and used excerpts from a pro-free trade speech by former President Reagan. French President Macron called on EU heads of state and government to use the EU’s strongest trade instrument against China if a solution to China’s planned export controls on critical raw materials cannot be found. According to insiders, all options, including the “anti-coercion instrument”, will be examined.
What was important on an economic level?
In Great Britain, inflation has recently remained unexpectedly stable, which increases the chances of an interest rate cut at the end of the year. According to the Statistics Office in London, consumer prices rose by an average of around 3.8 percent in September compared to the same month last year. There are also positive economic signals in Germany: the economy surprisingly picked up speed in October and recorded the strongest growth in almost two and a half years. This is indicated by S&P Global’s Purchasing Managers’ Index for the private sector, which includes both industry and service providers. The sentiment barometer rose by 1.8 points to 53.8 points, as S&P Global announced on Friday after the monthly survey of purchasing managers.
What was important company news?
Netflix reported quarterly figures on Tuesday evening. The streaming provider saw profits rise to around $2.5 billion in the third quarter despite a tax dispute in Brazil, but had to pay $619 million to Brazilian authorities.
Nokia increased its revenue to 4.8 billion euros in the third quarter, mainly thanks to strong demand for network infrastructure and optical networks. The company is raising its annual forecast and is increasingly focusing on growth areas such as artificial intelligence and defense technology. The stock rose to a new annual high this week.
Tesla posted record sales in the third quarter thanks to a rush from buyers ahead of the expiration of a U.S. tax credit, but missed profit expectations. The electric car maker’s sales rose to $28.1 billion compared to the same period last year, the company announced on Wednesday.
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Source: HSBC