Jaime Sicilia (singular bank) | A day of modest growth in key world indices, in a week that will include holding elections in the US on Tuesday to renew the House of Representatives and the Senate, and CPI data for Thursday as the most important reference.Despite the Fed’s resolute campaign to hike interest rates to curb inflation, the indices continued to rise, Signs of weakness in corporate profits ahead of Q4 and announcement of easing of zero COVID policy by China.
In Germany, industrial output for September increased by 0.6%, up 0.1% from expected, Year-on-year stands at 2.6%. In this sense, large gas reserves could mitigate the impact of the energy crisis on German companies, which has been one of the market’s biggest fears in recent months.
at the business level, In today’s presentation of its results, Ryanair assured what it believes to be the only great low-cost airline in Europe. In view of the difficult position of the sector as compared to its strong financial position. Apple, for its part, has commented that they expect to produce at least three million fewer iPhone 14s this year due to sanctions measures in China. Lastly, Meta Platforms has announced that it plans to cut a significant number.
All the indices in the Asia-Pacific region have performed positively. In China, the Hong Kong Hang Seng is up 2.69% and the Shanghai Composite is up 0.23%, with the latter trending lower. Beijing would deny that it was considering easing its zero-Covid policy. In addition, China’s trade surplus in October was 11% lower than expected (-0.3% year-on-year compared to 4.5%) due to weakness in exports, which slowed for the third consecutive year-on-year. month and returned to shrinking ground for the first time since May 2020.
In the face of low prospects for global growth, Consensus Estimation of EPS (earnings per share) This week for 2023 it is IBEX 35 . has been revised up to 2.2% for, with a forecast of zero growth in 2023. In the case of the European Stockx 600 indicator, the EPS projected to rise 0.4% in 2023, ending the 5 consecutive weeks of cuts, projected a growth of 2.5% over the year. In contrast, the S&P 500’s projections have been revised down 0.6% for the week, while expected growth for 2023 is 6.7%, and at MSCI World they fall 0.5% with 5.1% for the next year.
in Europe, The Eurostox 50 is up 0.55%, and is maintaining its upward trend since 12 October. Thus, FTSE MIB stood out today with a rise of 0.90%. Compared to the utilities, consumer staples and health sectors, the European Stokes 600 indicator is driven by real estate, technology and materials companies that posted losses.
in Spain, IBEX 35 closed above the 7,900 mark after gaining 0.25%. Among its constituents, the largest re-evaluations have been made in Sasir (4.98%), Grifols (3.77%) and IAG (2.92%). Conversely, the biggest declines were recorded in Telefónica (-1.41%), Naturgy (-0.87%) and Ferrovial (-0.85%).
Finally, in the US, at the end of the European session, the S&P 500 was up 0.36% and the Nasdaq Technology Index was down 0.15%.