Market News

US Tech Stocks Slide as Earnings Disappoint – Nasdaq Drops 1.38%

US equity markets finished lower in trading yesterday as disappointing earnings updates from major technology companies weighed on investor sentiment. The Nasdaq led the declines, falling 1.38% to close at 26,184, as Alphabet’s Q3 results failed to meet market expectations, while Amazon added to the negative sentiment with its earnings announcement after the closing bell. The broader market also came under pressure, although losses were more contained, with the S&P 500 declining 0.30% to finish at 7,720 and the Dow Jones slipping 0.25% to close at 52,342.

US Treasury yields fell sharply following the release of Core PCE inflation data, which came in broadly in line…

●         Asian Stock Markets : Nikkei down 2.62%, Shanghai Composite down 0.30% Hang Seng up 1.57% ASX up 0.31%

●        Commodities : Gold at $4,000.05 (-0.78%) Silver at $51.260 (-2.13%), Brent Oil at 112.13 (1.20%), WTI Oil at 103.24 (1.22%)

●        Rates : US 10-year yield at 4.919, UK 10-year yield at 5.3005, Germany 10-year yield at 3.3557

●        (USD) Advance GDP Price Index q/q  2.3% to 3.2%  expected

●        (EUR) Main Refinancing Rate   2.65% to 2.65%  expected

U.S. stock futures fell early Friday as Amazon and Intel shares slumped following their latest quarterly results, intensifying concerns about artificial intelligence (AI) spending and growth…

There are a couple of key expiry levels to take note of on the day, as highlighted in bold below.

The first ones are for EUR/USD and they are layered between the 1.1150 and 1.1200 levels, with the spot price sandwiching the expiries at the moment.

The larger expiries at the figure level could potentially act as a magnet for price action with the ones closer to 1.1175 potentially helping to anchor price action around the current levels at least. Meanwhile, the ones at 1.1150 could potentially add another layer of gravitational pull if sellers gain the upper hand in the session ahead.

But when taken together, these expiries could encourage more two-sided price action between 1.1150 and 1.1200 before rolling off later in the day - with the more…

• France Q3 preliminary GDP -0.1% vs +0.1% q/q expected
• Prior 0.0%
• France Q3 preliminary GDP % vs +0.3% y/y expected
• Prior +0.5%

Ouch. That's a notable miss as French GDP shrinks in Q3 this year. That follows from the stagnation in Q2 and a 0.2% contraction in Q1, not exactly the sort of economic performance one would hope for from Europe's second-largest economy.

Looking at the breakdown, household consumption actually improved in rising to 0.4% from 0.2% previously. However, investment remained a major weak spot in falling by 0.6% after a 0.5% decline in the quarter before this.

The big drag came from exports, slumping by 1.7% and reversing a 2.8% increase in the previous quarter. That saw net trade subtract 0.6% from growth, although inventory…

In case you missed it, the BOJ left its policy rate unchanged at 1.25% in a 8-1 vote earlier today. And while the decision in itself was widely expected, the central bank finally moved to declare victory on inflation after a hard-fought battle for more than a decade.

Ueda is now following up on that decision and is arguing that the board is sharing a unanimous view on prices at this juncture. His comments:

• Japan's economy expected to continue growing moderately
• Underlying inflation at level generally consistent with 2% price stability target, expected to remain at around that level
• All members agreed that underlying inflation has reached 2% target
• Cannot condone underlying inflation from becoming higher
• BOJ will continue to raise policy rate…

It looks like Halloween is coming a day early for markets with investors getting quite the fright already as we look to wrap up the trading week. Both stocks and Treasury yields are falling together, with gold also struggling to catch a bid. That's a rather spooky combination to deal with.

So, what exactly is driving markets into this scary situation?

Well, the latest earnings from Amazon overnight have only added another skeleton to the closet after the company's massive AI spending bill overshadowed impressive cloud growth. Amazon shares are down 7% in after-hours trading, and that follows from the beating that tech shares took yesterday after Alphabet reignited fears of AI spending in the day before.

US futures are being dragged sharply…

If you think back to a decade ago, the BOJ being able to even see the path to reach the inflation target was very much a pipedream. Yet, here we are today. The central bank finally gets to declare victory on inflation. That must mean champagne all around, surely? Well, not quite.

As it would seem, getting to the finish line and convincing policymakers to do something about it are two very different things.

The BOJ kept its policy rate unchanged today at 1.25% in a 8-1 vote, with board member Takata dissenting in playing the role as the lone hawk again. He called for a 25 bps rate hike to 1.50% but the rest of the board wasn't having any of it. So, what's the story here?

The most interesting bit of the meeting decision today is that the BOJ…

BoJ keeps policy rate unchanged at 1.25%, as expected

The vote leans hawkish. The dissent the market feared, a call for a cut, didn’t happen, and the only objection came from a member pushing for a hike now. That should support the yen near 157.8 per dollar and keep December pricing, about 80% going in, firmly in place. Short-dated Japanese government bond yields may edge higher. The faster ETF sales add modest supply to Japanese equities from 2027, a mild headwind for the Nikkei. The final read will depend on the Outlook Report and Ueda’s tone, with oil-driven inflation pressure keeping the case for tightening alive.

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Earlier:

• BOJ preview: Daiwa sees hold, but 2% inflation call could open door to December hike
• BoJ preview: MUFG sees hold…

The meeting delivered almost everything hawks had looked for: the 2% declaration, upside price risks, a higher inflation forecast and a dissent in favour of a hike, with no dovish split. That should support the yen near 157.8 per dollar, push short-dated JGB yields higher and firm December hike pricing from around 80%. Oil sits at the centre of the forecasts. The bank assumes Dubai crude falls from about $105 to $70, so a sustained rise in prices tied to the Iran conflict would add to the upside risk to inflation. Faster ETF sales add modest supply for Japanese equities from 2027, though a 43-year horizon keeps the annual impact small.

-The Bank of Japan has all but declared victory over deflation, and its own forecasts now say inflation…

• BoJ declares underlying inflation at 2% target, lifts FY2027 price forecast as rates held
• BoJ keeps policy rate unchanged at 1.25%, as expected
• (Some good news!) Treasuries rally as AI selloff drives flight to safety, 10-year yield at one-month low
• Amazon and Intel results deepen worries over AI boom costs as tech, chip stocks slide
• PBOC sets USD/ CNY reference rate for today at 6.7138 (vs. estimate at 6.6548)
• Chainalysis estimates $5.9B stolen in suspected Binance hack, nearly 4 times Bybit
• Binance halts deposits and withdrawals, pledges to cover all losses from suspected hack
• Ukraine reportedly pauses strikes on Russian refineries after US pressure
• Vessel on fire in Strait of Hormuz after incident near Oman, cause "unknown" (LOL)
• Japan September…

The yen and short-dated Japanese government bond yields are where any surprise will show, with USD/JPY near 157.8 going into the release. Because a hold is fully priced, the market reaction will come from the language and the vote. A hawkish package would likely strengthen the yen and lift two-year yields. A dovish split could trigger renewed yen selling. Oil prices remain a background factor: Brent’s run of monthly gains strengthens the case for tighter policy because energy feeds directly into Japan’s import costs. Japanese bank stocks tend to benefit from signals of higher rates, while exporters could feel pressure from a firmer yen.

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Earlier:

• BOJ preview: Daiwa sees hold, but 2% inflation call could open door to December hike
• BoJ…

The Chainalysis estimate turns a containable loss into a balance-sheet question for Binance. A gap near $1 billion could be covered by SAFU, but one over $3 billion would test the exchange’s finances. That matters most for BNB, whose value is closely tied to Binance’s health. With deposits and withdrawals still frozen, any easing of selling pressure has to wait until Binance confirms the loss and explains how it will pay. Bitcoin and ether are more exposed to sentiment and liquidity at Binance than to the loss itself.

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Earlier:

• Binance halts deposits and withdrawals, pledges to cover all losses from suspected hack

... as it happened:

1. Tether freezes $971M USDT amid suspected Binance hack as crypto sells off
2. Binance appears hacked, CZ says, as…