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Strong start to the week on Wall Street

Stocks started the week strong as a series of diplomatic efforts among the world’s largest nations suggested it should be possible to prevent an expansion of the war beyond Israel and Gaza. Nearly all major stock indices in Europe and the US ended Monday’s session in positive territory and Asia markets were trading strong on Tuesday.

Shane Strowmatt, LGT
Tempo di lettura
5 minuto
Wall Street green light
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In the Middle East, US Secretary of State Antony Blinken held talks with Israeli Prime Minister Benjamin Netanyahu about various issues including a plan to get aid to civilians in Gaza. US President Joe Biden is set to visit Israel as well. An attempt by Russia to push through a ceasefire text in the UN Security Council failed to pass. Altogether, the diplomatic efforts were seen as likely helping to prevent an escalation of the war, which was received positively by markets.

In New York, the main stock indices had a strong session. The Dow Jones Industrial gained 0.9% and the S&P 500 was up 1.1%. Megacaps such as Amazon (+2.1%), Meta (+2.1%), Microsoft (+1.5%), and Alphabet (+1.3%) drove the tech-heavy Nasdaq-100 to a 1.2% gain.

Charles Schwab became the next financial firm to see its stock jump after presenting quarterly figures. The company’s shares increased 4.7% after the brokerage posted a drop in quarterly profit that was less than the drop that market had expected. On Friday, J. P. Morgan kicked off the quarterly reporting season by beating analysts’ net income expectations and raising its interest income outlook. Earnings season continues on Tuesday with figures from two more large US financial firms: Bank of America and Goldman Sachs.

In Europe the gains were more muted on Monday with the Euro Stoxx 50 finishing the session up 0.3%. France’s CAC 40 and Germany’s DAX were also up 0.3% each.

In the Asia-Pacific region, stock markets came roaring back from Monday’s losses. In Tokyo, the Nikkei 225 was trading 1% higher on Tuesday and South Korea’s Kospi was up 1.1%. Hong Kong's Hang Seng Index was trading up 0.7%, while the Shanghai Composite was up 0.3%. In Australia, the S&P/ASX 200 gained 0.4% after the Reserve Bank of Australia made the minutes of its last policy meeting public, giving traders insight into the rationale behind its decision not to change rates.

Corporate news in focus: Q3 figures from Ericsson, Johnson & Johnson, Bank of America, and Goldman Sachs.

Economic data in focus: UK labour market data (08:00 CET), Germany’s ZEW Indicator of Economic Sentiment (11:00), US retail sales (14:30) and industrial production (15:15).


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