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US midterms, AI earnings in focus

US midterm elections dominate attention this week as voters head to the polls on Tuesday, with control of Congress at stake and implications for President Donald Trump’s ability to advance his tax and spending agenda. Monetary policy also remains in focus, with the Reserve Bank of Australia’s interest rate decision on Tuesday and the Bank of England’s announcement on Thursday, as elevated energy prices complicate the inflation outlook. October inflation readings from Switzerland (Tuesday) and the euro area (Wednesday) provide further context on price pressures. US ISM manufacturing (Monday) and services (Wednesday) purchasing managers’ indices for October, September US job openings (Tuesday) and the October US employment report (Friday) offer fresh evidence on economic momentum and labour market conditions. Following last week’s technology sell-off amid renewed doubts about returns on heavy AI spending, earnings from Apple (Monday), Palantir (Monday), AMD (Tuesday), Arm (Wednesday) and Qualcomm (Wednesday) provide insight into demand for consumer hardware, AI software and chips. Japanese markets are closed on Tuesday for Culture Day.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

US Elections 5 November 2024
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Asian stocks rise as technology shares recover

Asian equities mostly advanced on Monday, led by South Korea’s KOSPI, which gained 2.2%, as lower oil prices supported investor sentiment ahead of technology giant Apple’s quarterly results. Bucking the trend were markets in Japan and Australia, with Japan’s Nikkei 225 falling 0.3% and Australia’s S&P/ASX 200 dropping 0.6%. Brent crude oil futures declined 3% to USD 110.05 a barrel amid diplomatic efforts to end the US-Israeli war with Iran, helping ease market concerns following last week’s technology sell-off. Investors also awaited Tuesday’s Reserve Bank of Australia decision, with another interest rate increase widely anticipated after annual inflation accelerated to 4.3% in September from 4% in August. Spot gold rose 0.8% to USD 3905.10 an ounce as investors bought after a 3.7% decline in the previous session, which left prices at a one-year low and completed the metal’s weakest monthly performance since 2008.

China’s manufacturing surveys diverge

China’s RatingDog manufacturing purchasing managers’ index edged down to 52 points in October from 52.1 in September, meeting economists’ expectations and signalling an eleventh consecutive month of expansion, according to data released on Monday. Production growth reached its strongest pace since April as domestic and foreign orders increased, although export order growth slowed. The official manufacturing index, by contrast, dropped to 49.3 from 50.1, undershooting forecasts and indicating contraction, with the divergence partly reflecting its greater coverage of large and state-owned firms. The private survey also showed limited hiring and rising input costs, while competitive pressures prompted manufacturers to lower selling prices. Mainland China’s CSI 300 rose 0.7% and Hong Kong’s Hang Seng added 0.5% on Monday.

US stocks slide amid technology sell-off

The Nasdaq 100 fell 3.5% to 28,384.85 points on Friday last week as disappointing corporate updates intensified concerns about heavy artificial intelligence spending. The S&P 500 declined 1.8% to 7580.07 points, while the Dow Jones Industrial Average lost 1.1% to 51,770.31 points. Chipmaker Intel plunged almost 29% after its fourth-quarter revenue outlook fell short of analysts’ expectations, while online retail and cloud computing group Amazon declined 1.4% amid weaker-than-expected cloud revenue and elevated AI investment. The Nasdaq 100 lost 2% over the week and 6.7% in October, briefly entering correction territory as its decline from its early-October record exceeded 10%.

Euro-area growth slows in third quarter

Euro-area gross domestic product grew by 0.4% quarter-on-quarter in the third quarter, down from 0.6% in the second quarter, according to preliminary Eurostat figures released on Friday. EU growth also slowed, to 0.5% from 0.7%, while annual growth strengthened to 1.3% in the euro area and 1.5% in the EU, compared with 1.2% and 1.4%, respectively, in the previous quarter. Ireland recorded the strongest quarterly expansion at 5.5%, while Germany grew by 0.2%, Italy stagnated and France contracted by 0.1%. The estimates draw on incomplete information and remain subject to revision. The euro-area unemployment rate remained at 6.5% in September, unchanged from August but above 6.3% in September 2025, according to Eurostat data released separately on Friday. The Euro Stoxx 50 fell 1.2% on Friday, while Germany’s DAX lost 0.9% and France’s CAC 40 was little changed.

Swiss KOF barometer falls but remains robust

Switzerland’s KOF Economic Barometer fell by 1.5 points to 107.6 in October, according to figures released on Friday, but remained above its medium-term average following increases in previous months. Weaker indicators for foreign and consumer demand, alongside deterioration in financial, insurance and other services, contributed to the decline. Improved manufacturing prospects cushioned the fall, particularly in metals and food production, while paper and printing indicators weakened. The reading suggests that the outlook for the Swiss economy remains robust. The Swiss Market Index rose 0.4% on Friday.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Apple, Berkshire Hathaway, Palantir, and Vertex Pharmaceuticals.

Economic data in focus: Manufacturing Purchasing Managers’ Indices from several of the world’s largest economies, including Switzerland (08:30), Italy (09:45), France (09:50), Germany (09:55), the euro area (10:00), the UK (10:30), Canada (15:30) and the US (15:45, Institute for Supply Management: 16:00); German retail sales (08:00), Swiss retail sales (08:30).

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Global economic and market trends at a glance

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.