The week of October 14-18, 2024, saw key economic updates from the UK, Canada, New Zealand, and Australia, highlighting inflation, labor market, and retail trends. Central banks like the ECB adjusted rates amid evolving inflation. Major companies, including Bank of America, Morgan Stanley, and Netflix, reported strong Q3 earnings. Meanwhile, fluctuations in oil and precious metals contrasted with gains in the stock market, led by Tevogen Bio Holdings and Santech Holdings.
Tuesday, October 15
09:00 am – UK: Claimant Count Change (GBP)
In the UK, payrolled employees fell by 35,000 between July and August 2024 but rose by 165,000 over the year. Employment held steady from June to August, with the unemployment rate at 4.0%. Vacancies continued to decline, but pay growth remained strong, with regular pay up 4.9% and 1.9% in real terms.
The GBPUSD saw a slight increase of 0.11% from the previous daily session.
15:30 – Canada: CPI m/m (CAD)
Canada’s inflation slowed in September, with the CPI rising 1.6% year-over-year, its smallest gain since early 2021. A 10.7% drop in gasoline prices drove this deceleration while excluding gas, inflation stood at 2.2%. Despite the slowdown, rent and food costs remain significantly higher, up over 20% since 2021. Monthly, the CPI fell 0.4%, staying flat seasonally adjusted.
The exchange rate between the Canadian and the US dollar decreased by 0.14% from the previous day.
Wednesday, October 16
12:45 am – New Zealand: CPI q/q (NZD)
New Zealand’s inflation rose 0.6% quarterly and 2.2% annually in the September 2024 quarter. Increases in rates, vegetables, and pharmaceuticals were balanced by lower petrol and education costs. Housing rentals rose, while petrol prices dropped over the year.
The NZDUSD pair decreased by 0.45%.
09:00 am – UK: CPI y/y (GBP)
In the 12 months to September 2024, the UK’s CPIH rose by 2.6%, down from 3.1% in August. The CPI increased by 1.7%, also down from 2.2% in August. Transport, particularly airfares and motor fuels, contributed most to the decline, while food and beverages saw an upward impact.
The GBPUSD exchange rate declined by 0.65% from the prior trading session, reflecting a weakening of the British pound against the US dollar.
Thursday, October 17
03:30 am – Australia: Employment Change (AUD)
In September 2024, Australia’s unemployment rate held at 4.1%, with employment rising by 44,400. The participation rate increased to 67.2%, and monthly hours worked edged up to 1,965 million. Full-time jobs grew by 51,600, and part-time by 12,500.
The AUDUSD price rose by 0.46% compared to the previous day.
15:15 – Europe: Main Refinancing Rate (EUR)
The European Central Bank (ECB) cut its key interest rates by 25 basis points, lowering the deposit rate to 3.25%. While inflation is easing, a temporary rise is expected before hitting the 2% target by 2025. Wage pressures remain but should ease gradually.
The EURUSD decreased by 0.27% from the previous day’s close.
15:30 – USA: Retail Sales m/m (USD)
In September 2024, US retail and food services sales reached $714.4 billion, rising 0.4% from August and 1.7% year-over-year. Nonstore retailers saw a 7.1% annual gain, and food services grew by 3.7%, indicating a gradual recovery in consumer spending.
The USDJPY exchange rate saw an increase of 0.4%.
15:30 – USA: Unemployment Claims (USD)
For the week ending October 12, 2024, US initial unemployment claims fell by 19,000 to 241,000, while the 4-week average rose to 236,250. Insured unemployment edged up to 1.867 million, with layoffs mainly in manufacturing and healthcare.
The US Dollar Index rose by 0.23% compared to the previous day.
Friday, October 18
09:00 am – UK: Retail Sales (GBP)
In September 2024, retail sales in Great Britain rose by 0.3%, following a 1.0% gain in August. Quarterly sales volumes increased by 1.9%, the largest rise since July 2021, with annual growth at 3.9%.
GBPUSD increased by 0.29%.
Commodities
- Crude Oil
Crude Oil had an 8.32% weekly loss.
- Brent Oil
Brent decreased by 7.44% compared to the previous week
- Gold
Gold (XAUUSD) closed the week with an increase of 2.42%
- Silver
XAGUSD posted a weekly loss of 6.91%.
Stock Market
- S&P 500 increased by 0.97%
- DJIA was up by 1.04%
- NASDAQ 100 increased by 0.41%
Top Gainers
- Tevogen Bio Holdings Inc. (TVGN) 353.11%
- Santech Holdings Limited (STEC) 341.34%
- JIADE Limited (JDZG) 236.28%
Top Losers
- Orgenesis Inc. (ORGS) -33.86%
- bioAffinity Technologies, Inc. (BIAF) -33.80%
- MGP Ingredients, Inc. (MGPI) -24.16%
Company Earnings (October 14 – 18)
Tuesday, October 15: BAC (Bank of America Corp)
Tuesday, October 15, C (Citigroup Inc)
Tuesday, October 15, JNJ (Johnson & Johnson)
Wednesday, October 16: MS (Morgan Stanley)
Thursday, October 17: BX (Blackstone Inc)
Thursday, October 17: NFLX (Netflix Inc)
Friday, October 18: AXP(American Express Coo)
Bank of America (BAC) reported strong third-quarter results with a net income of $6.9 billion and revenue of $25.3 billion, driven by growth in investment banking, asset management, and trading fees. The bank returned $5.6 billion to shareholders through dividends and buybacks. Focused on digital expansion and client relationships, the bank shows resilience in a challenging financial environment.
Bank of America shares posted a weekly increase of 0.9%, reflecting steady investor confidence.
Citigroup’s (C) Q3 2024 earnings report highlights net income of $3.2 billion and revenue of $20.3 billion, up 3% excluding divestitures. Investment banking fees rose by 44%, and services revenue grew 8%. However, fixed income revenue dropped 6%, and net interest income excluding markets fell 1%. The bank’s expenses were $13.3 billion, down 2%, with continued investments in transformation. Citigroup returned $2.1 billion to shareholders, maintaining a CET1 capital ratio of 13.7%.
Citigroup shares experienced a 4.5% decline over the past week.
Johnson & Johnson (JNJ) beat Q3 earnings expectations with $2.42 per share, driven by a 20% surge in Darzalex sales and a 5% growth in pharmaceutical revenue. The company is addressing Stelara’s upcoming biosimilar competition and making progress on talc-related settlements. J&J lowered its full-year earnings guidance due to a medical device acquisition but remains focused on growth through new drug approvals and acquisitions.
Johnson & Johnson’s stock appreciated by 2.3% over the past week, reflecting positive market sentiment and potential investor confidence in the company’s performance.
Morgan Stanley’s (MS) profit for the third quarter of 2024 exceeded expectations, driven by a 56% surge in investment banking revenue due to increased mergers, IPOs, and corporate debt issuance. The bank’s stock jumped 7.6% to a record high of $120.80. CEO Ted Pick expressed optimism about the continued recovery of M&A and IPOs. Wealth management also saw strong growth, with total client assets surpassing $7.5 trillion. Overall, the bank’s profit rose to $3.19 billion, supported by its diversified business segments and robust performance across investment and wealth management.
Morgan Stanley’s shares experienced a 9.6% weekly appreciation, reflecting strong market confidence and positive investor sentiment.
Blackstone Inc. (BX) posted strong Q3 2024 results, with GAAP net income of $1.6 billion and distributable earnings of $1.3 billion. AUM grew 10% year-over-year to $1.1 trillion, and fee-earning AUM rose 12% to $820 billion. The firm saw record management fees but faced challenges like limited disposition activity and rising operating expenses. Despite these hurdles, Blackstone’s fundraising and global expansion remain strong.
Blackstone shares experienced a notable 12.6% increase over the past week.
In Q3 2024, Netflix (NFLX) saw 15% revenue growth and improved operating margins. High engagement continues, and the company is expanding its content and investing in gaming and live events. Its advertising business is growing, with revenue expected to double by 2025. Challenges include a small membership decline in Latin America, content delays due to Hollywood strikes, and stable but flat engagement in the US.
Netflix shares increased by 5.6% over the past week.
American Express (AXP) reported an 8% increase in revenue, reaching $16.64 billion, though slightly below the projected $16.67 billion. Net profit rose 2% year-over-year to $2.51 billion. Earnings per share came in at $3.49, outperforming analysts’ expectations of $3.28, reflecting stronger-than-anticipated profitability despite the minor revenue shortfall.
American Express shares experienced a slight uptick of 0.22% over the past week.
Conclusion
In summary, the week of October 14-18, 2024, showcased a range of economic and corporate developments, from inflation data and labor market updates across various countries to strong third-quarter earnings from major corporations like Bank of America, Morgan Stanley, and Netflix. While some sectors saw modest gains, the stock market showed positive momentum overall, with key companies posting notable share price increases. Despite fluctuations in commodities and currency exchanges, the week’s performance reflected resilience in both economic indicators and corporate profitability.