Japan shares rose as the scandal-plagued Liberal Democrats lost their majority in Sunday elections. Trump Media shares jumped after the former president’s Madison Square Garden rally, while Philips took a hit as it cut its sales outlook on weak China demand.
- S&P 500 Futures: 5,881.25 ⬆️ up 0.60%
- S&P 500: 5,808.12 ⬇️ down 0.03%
- Nasdaq Composite: 18,518.60 ⬆️ up 0.56%
- Dow Jones Industrial Average: 42,114.40 ⬇️ down 0.61%
- STOXX Europe 600: 519.11 ⬆️ up 0.06%
- SSE Composite: 3,322.20 ⬆️ up 0.68%
- Nikkei 225: 38,605.53 ⬆️ up 1.82%
- Bitcoin: $68,669.55 ⬆️ up 1.04%
China: Shares rise despite bad industrial profit data
China markets rose for the second day in a row on Monday, despite the publication of industrial profit numbers that showed a fall of 27.1% in September following a 17.8% decline in August. The September numbers represented the steepest fall since the beginning of the COVID pandemic.
Investor nerves were eased by the limited nature of Israel’s retaliation against Iran—it avoided oil facilities—which led oil prices to drop more than 5% at one point.
The CSI 300, which tracks the 300 top stocks on the Shanghai and Shenzhen exchanges, rose 0.20% while Shanghai’s SSE Composite rose 0.68%. Hong Kong’s Hang Seng added a marginal 0.05%.
Japan: Shares jump as ruling Liberal Democrats lose majority
Relieved investors boosted the Nikkei 225 by 1.82% after the ruling Liberal Democrats lost Sunday elections. While stocks are expected to suffer from the political turmoil caused by the loss, analysts said investors had been expecting the defeat and it had been priced into the markets. In the near term, Japan’s political uncertainty means the central bank is even more unlikely to raise rates when it meets Thursday.
Gains were widespread across the Nikkei, with Toyota rising over 4% and Softbank jumping almost 3%.
Europe: Shares mixed as Philips plunges
European stocks were mixed early Monday as the drop in oil prices after Israel’s limited attack on Iran spurred investor optimism in many sectors but battered oil and gas companies.
The STOXX Europe 600’s energy sector was down over 2% in early trading, with Norway’s Equinor down 3.8%. The Dutch medical devices company Philips took a major hit after it announced it was cutting its full year sales expectations because of “deteriorated” demand in China; shares were down 16.7% in morning trading.
The Stoxx Europe 600 was up 0.06% and the FTSE 100 was flat in the morning.
U.S. premarket up after Nasdaq hits record
U.S. markets were up in premarket trading Monday, spurred by oil’s price drop. The gains come after Wall Street said goodbye to its six-week winning streak on Friday; while the Nasdaq hit an all time high, the Dow and S&P 500 fell.
One of the biggest losers Friday was Capri Holdings Ltd., which lost nearly half its value after a federal judge blocked its acquisition by Tapestry.
This week, investors will be focusing on the Magnificent 7—or at least the five of them that report earnings. Alphabet shares were up 1.5% ahead of its Tuesday report.
And Trump Media was up more than 8% in premarket trading Monday, after the former president hosted a big—and insult-laced—rally in New York’s Madison Square Garden.
And earnings season continues…
Five of tech’s Magnificent 7 report this week, with Alphabet on Tuesday, Microsoft and Meta on Wednesday, and Amazon and Apple Thursday..
