Market Overview
Global financial markets are cautious as the weekend draws to a close, amid continued pressure on technology and artificial intelligence stocks, as oil prices rise and fears of renewed military confrontation between the United States and Iran escalate.
Despite some stabilization in Asian markets, US futures and European stocks remain under pressure, while investors await next week's Federal Reserve meeting.
First: Key developments in global markets
- Pressure continues on technology stocks after the Nasdaq index fell 2.60% on Thursday, and the semiconductor index declined by about 7%.
- Brent crude rose above $114 a barrel, amid growing concerns about energy supplies in the Middle East.
- There has been a relative improvement in the Chinese and Hong Kong markets, compared to a continued decline in Japan.
- Yields on 10-year US Treasury bonds have fallen below 5%, as investors move towards less risky assets.
- Concerns about French government debt persist, despite a decrease in pressure on European bonds.
- Economic activity in the Eurozone slowed, with the composite Purchasing Managers' Index (PMI) falling to 51.9 points in October.
Second: Global market indicators
US markets – Thursday, October 22nd closing
Index | Closing Level | Change | S&P 500 | 7,663.43 | -1.21%
Nasdaq Composite | 26,008.86 | −2.60%
Dow Jones | 52,867.98 | +0.02%
Nasdaq Composite | 26,008.86 | −2.60%
Dow Jones | 52,867.98 | +0.02%
US Futures – Friday, October 23
Index Level Change S&P 500 Futures | 7,688 | −0.20%
Nasdaq 100 Futures | 29,139 | −0.01%
Dow Jones Futures | 52,749 | −0.60%
Nasdaq 100 Futures | 29,139 | −0.01%
Dow Jones Futures | 52,749 | −0.60%
European markets – during Friday's session
German DAX Index | Level of Change | 25,189.55 | -0.72%
French CAC 40 | 7,768.91 | -0.54%
FTSE 100 (UK) | 10,668.27 | -0.53%
French CAC 40 | 7,768.91 | -0.54%
FTSE 100 (UK) | 10,668.27 | -0.53%
Asian markets – Friday closing
Index/Closing Level/Change: Nikkei 225 (Japan) | 62,693.16 | -0.34%
Hang Seng | 23,093.37 | +0.69%
CSI 300 Chinese | — | +1.70%
Korean KOSPI | — | Height
Hang Seng | 23,093.37 | +0.69%
CSI 300 Chinese | — | +1.70%
Korean KOSPI | — | Height
Asian markets closed with mixed performance, as Chinese and Korean stocks recovered from early session pressures, while the Nikkei index ended the week with losses exceeding 4%.
Third: Oil, gold, silver, and currencies
Original price | Brent crude oil change | $114.57 | +1.20%
WTI Crude Oil | $100.95 | +1.50%
Spot gold | $4,023.95 | -3.50% weekly
Instant Silver | $53.84 | -1.30%
EUR/USD | 1.1189 | —
USD/JPY | 156.80 | —
Dollar Index (DXY) | 101.76 | +0.20%
WTI Crude Oil | $100.95 | +1.50%
Spot gold | $4,023.95 | -3.50% weekly
Instant Silver | $53.84 | -1.30%
EUR/USD | 1.1189 | —
USD/JPY | 156.80 | —
Dollar Index (DXY) | 101.76 | +0.20%
Fourth: Oil and geopolitical tensions
Oil prices continued to rise amid ongoing concerns about renewed military escalation in the Middle East, particularly following Houthi attacks on Saudi targets and reports of possible new US and Israeli strikes against Iran after the US midterm elections on November 3.
Brent crude surpassed $114, while US crude approached $101, amid concerns about continued disruptions to shipping and energy supplies.
These developments pose an additional inflationary risk, especially if oil prices remain above $110 for an extended period.
European natural gas prices also rose by about 4% during the session, bringing their monthly gains close to 30%.
Fifth: Key findings of American companies
American Express – Results for Friday, October 23
Financial Indicator | Revenue | $20.1 billion
Annual revenue growth | +9%
Net Profit | $3.71 Billion
Net Profit Growth | +28%
Adjusted earnings per share | $4.68
Annual earnings per share forecast | $17.60–$17.90
Annual revenue growth | +9%
Net Profit | $3.71 Billion
Net Profit Growth | +28%
Adjusted earnings per share | $4.68
Annual earnings per share forecast | $17.60–$17.90
The company achieved record revenues, supported by continued strong customer spending, and raised its forecast for annual profits.
SLB – Results Friday, October 23
Financial Indicator | Revenue | $9.45 billion
Annual revenue growth | +6%
Adjusted earnings per share | $0.64
Expected earnings per share | $0.62
Annual revenue growth | +6%
Adjusted earnings per share | $0.64
Expected earnings per share | $0.62
The company exceeded profit expectations, with a gradual recovery in its Middle East operations despite the continued impact of regional unrest.
Procter & Gamble – Results for Thursday, October 22
Financial Indicator | Revenue | $23.3 billion
Annual revenue growth | +4%
Basic earnings per share | $2.00
Annual revenue growth | +4%
Basic earnings per share | $2.00
The company pointed to rising costs of raw materials, energy and transportation, which are putting pressure on profit margins.
Lockheed Martin – Results Thursday, October 22
Financial Indicator | Revenue | $20.7 billion
Annual revenue growth | +11%
Earnings per share | $7.97
Backlog of orders | $292 billion
Annual revenue growth | +11%
Earnings per share | $7.97
Backlog of orders | $292 billion
The company recorded a record level of backlogged orders, supported by continued global demand for defense equipment and systems.
Newmont – Results for Thursday, October 22
Financial Indicator | Revenue | $6.36 billion
Adjusted earnings per share | $2.20
Expected earnings per share | $1.96
Adjusted earnings per share | $2.20
Expected earnings per share | $1.96
The company benefited from higher gold selling prices and increased sales, which helped it exceed analysts' expectations.
Sixth: Key expected company results
Today's announcement: Monday, October 26 | Verizon | Pre-opening
Monday, October 26 | Cadence Design Systems | After Closure
Tuesday, October 27 | Coca-Cola | Pre-opening
Tuesday, October 27 | Boeing | Pre-opening
Tuesday, October 27 | Visa | After Closure
Monday, October 26 | Cadence Design Systems | After Closure
Tuesday, October 27 | Coca-Cola | Pre-opening
Tuesday, October 27 | Boeing | Pre-opening
Tuesday, October 27 | Visa | After Closure
The dates mentioned are subject to change according to official company announcements.
Seventh: The most anticipated economic events
Friday, October 23: The initial reading of the US Purchasing Managers' Index (PMI) for the manufacturing and services sectors will be released.
Tuesday and Wednesday, October 27–28: US Federal Reserve meeting to determine monetary policy.
Thursday, October 29: The release of the US Personal Consumption Expenditures (PCE) Index data, one of the most important inflation measures monitored by the Federal Reserve.
This data is particularly important given rising energy prices and continued inflationary pressures.
Eighth: General assessment of the markets
Global markets face three main challenges:
- Rising oil prices: Continued increases in energy prices could reignite inflation and put pressure on global economic growth.
- Technology stock valuations: Growing concerns about increased spending on artificial intelligence and uncertainty about the future returns of these investments.
- Geopolitical risks and monetary policy: The approaching US midterm elections and the Federal Reserve meeting increase market sensitivity to economic news and data.
Despite these challenges, the results of a number of US companies still indicate continued revenue and profit growth, which may limit selling pressures if energy prices stabilize and geopolitical concerns subside.
Summary
Global markets are heading towards the end of the week amid caution and high volatility.
Oil remains one of the most significant sources of risk at the present time, while technology stocks face a real test of their ability to justify their high valuations.
Markets are likely to remain sensitive to geopolitical news, corporate earnings, and inflation data over the next week, with the potential for sharp price movements in both directions.
