As London and European traders head home, the major European stock indices have closed mostly lower. The declines were modest in Germany, France and the UK, while Spain underperformed. Italy’s FTSE MIB bucked the trend with a gain.
The closing levels showed:
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Germany’s DAX: 25,259.91, down 17.78 points or 0.07%
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France’s CAC 40: 7,827.64, down 5.25 points or 0.07%
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UK’s FTSE 100: 10,650.34, down 5.94 points or 0.06%
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Spain’s IBEX 35: 19,210.70, down 75.10 points or 0.39%
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Italy’s FTSE MIB: 50,057.17, up 22.18 points or 0.04%
European bond yields are mixed
Benchmark 10-year yields moved lower in most of the major European markets, with the UK the exception:
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Germany: 3.463%, down 0.5 basis points
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France: 4.839%, down 5.5 basis points
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UK: 5.451%, up 0.8 basis points
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Spain: 4.086%, down 1.6 basis points
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Italy: 4.563%, down 2.6 basis points
Trump’s Middle East comments keep the focus on escalation risks
President Trump’s comments added to the focus on Iran and the Houthis as tensions in the Middle East heat up. The headlines included:
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Houthis: Trump said they are “behaving very badly.”
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Warning over the election timeline: He said somebody should explain to the Houthis that he is not running in the elections and has already won. He added that he would be there after the elections and would “never forget.”
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Iran: Trump said he would make a decision on Iran very soon, without specifying what that decision would involve.
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US naval operations: In a separate Truth Social headline, Trump praised the US Navy blockade against Iran.
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Saudi Arabia: He said he had spoken with the Saudi Crown Prince.
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Possible Turkish involvement: Asked whether he would ask Turkey to join the response in Yemen, Trump replied, “I might.”
The comments leave traders waiting for the next step. A decision on Iran and any widening of the response against the Houthis remain key developments to watch. The other question is will he act before the election or wait until after.
Oil was trading higher in the supplied snapshot:
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WTI front-month futures: $93.90, up $0.16 or 0.17%
Existing-home sales beat modestly, but the underlying market remains soft
US existing-home sales rose to an annualized rate of 3.99 million in September, above the 3.95 million estimate. Sales increased 1.5% month over month.
The regional picture was mixed. Sales increased in the South and West, held steady in the Midwest, and declined in the Northeast. Compared with a year earlier, sales declined in all four regions.
Despite the monthly improvement, NAR Chief Economist Lawrence Yun said August and September were the two slowest sales months of the year. Higher mortgage rates in recent weeks are making it harder for buyers to qualify.
Higher inventory and longer selling times are giving buyers more negotiating power. For sellers, that means realistic pricing—and potentially discounts or incentives—may be needed to get a deal done.
US stocks are lower, while Treasury yields are mixed
Around 12:30 PM ET, the major US stock indices were trading lower:
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Dow industrial average: 51,681.18, down 175.00 points
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S&P 500: 7,798.99, down 8.25 points or 0.11%
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Nasdaq Composite: 27,211.89, down 34.01 points or 0.12%
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Russell 2000: 2,778.35, down 16.13 points or 0.58%
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Nasdaq 100: 30,543.75, down 120.95 points or 0.39%
US Treasury yields showed a split between the short and long ends:
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2-year: 4.812%, up 2.12 basis points
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5-year: 5.019%, down 0.17 basis points
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10-year: 5.225%, down 1.87 basis points
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30-year: 5.575%, down 2.39 basis points
Elsewhere, gold and silver were lower, while bitcoin moved higher:
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Spot gold: $4,156.78, down 0.36%
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Silver: $59.253, down 1.73%
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Bitcoin: $83,427, up $1,681 or 2.06%
This article was written by Greg Michalowski at investinglive.com.