- China stocks see best week since 2008 on stimulus impact as most Asia markets rise
Chinese markets clocked their best week in almost 16 years as the mainland’s CSI 300 rallied 15.7% this week,
buoyed by several economic stimulus measures by the central bank. The last time the index saw a bigger
weekly gain was the week ending Nov. 14, 2008. Hong Kong’s Hang Seng index recorded a weekly gain of
12.75%, making it the index’s best week since February 1998, according to FactSet data. On Friday, the CSI
300 climbed 4.47% to close at 3,703.68, its highest level in about a year, while the HSI rose 3.32% and closed
at 20,586.94, its highest since February 2023. The rally comes as the People’s Bank of China cut its 7-day
reverse repurchase rate to 1.5% from 1.7%, as well as slashed the reserve requirement ratio of financial
institutions by 0.5 percentage points. - Dow jumps 100 points to close at a record, major averages extend rally to third week
The Dow Jones Industrial Average climbed to a fresh record on Friday as traders digested new data that
pointed to further progress in lowering inflation. Wall Street also posted three straight positive weeks.
The 30-stock Dow added 137.89 points, or 0.33%, ending at 42,313.00. The blue-chip average posted a
closing record and reached an all-time high during the session. The S&P 500 ticked down 0.13% to 5,738.17,
while the Nasdaq Composite lost 0.39% to end at 18,119.59. A 2% decline in Nvidia weighed on the
technology-heavy index. The major averages each extended their gains to a third week, with the S&P 500 and
the Dow rising about 0.6% for the period. The Nasdaq advanced nearly 1% during the week. - Oil prices rise on Middle East supply risks as Israel steps up attacks
Oil prices edged higher on Monday on increasing concerns of potential supply disruptions from the Middle
East producing region after Israel stepped up attacks on Iranian-backed forces. Brent crude futures for
November delivery increased 16 cents, or 0.22%, to $72.14 a barrel as of 0043 GMT. That contract expires on
Monday and the more-active contract for December delivery gained 10 cents, or 0.14%, to $71.64. U.S. West
Texas Intermediate crude futures CLc1 added 8 cents, or 0.12%, to $68.26 a barrel. - Gold pulls back but dovish Fed sets it for best quarter since 2016
Gold prices eased on Monday but hovered near the record peak hit last week, setting bullion on track for its
best quarter in over eight years following a jumbo U.S. rate cut decision and expectations of another outsized
reduction in November. Spot gold was down 0.2% at $2,653.38 per ounce, as of 0404 GMT, owing to a rise in
the U.S. dollar. A stronger dollar makes gold less attractive for other currency holders. Bullion has risen
slightly over 14% so far this quarter, its best since January 2016. On a monthly basis, gold has added 6% in
September after hitting another record high of $2,685.42 on Thursday in a rally driven by the Federal
Reserve’s half-percentage-point cut, China’s stimulus measures and ongoing Middle-East war concerns. - China stocks rally 7% as manufacturing contracts less than feared; Japan’s Nikkei falls more than 4%
Japan’s Nikkei 225 tumbled more than 4% on Monday and the yen weakened against the dollar as traders
reacted to the results of the ruling Liberal Democratic Party election last Friday. China released its official
manufacturing PMI numbers for September, which came in at 49.8. While this beat the 49.5 expected by
economists polled by Reuters, this marked a fifth straight month of contraction for the manufacturing sector
in China. - China property stocks rally after major cities ease homebuying restrictions
The Guangzhou city government said in a notice on Sunday that all restrictions on home purchases would be
removed, effective from Monday. The Shanghai government lowered the required tax-paying period for
migrant workers to buy homes in non-central areas. Shenzhen’s government also relaxed purchasing
restrictions. which had capped local families to two homes and single individuals to one. allowing buyers to
purchase one more apartment in certain districts. - China to cut existing mortgage rates by the end of October
China’s central bank said on Sunday it would tell banks to lower mortgage rates for existing home loans
before Oct. 31, as part of sweeping policies to support the country’s beleaguered property market as the
economy slows. Commercial banks should, in batches, reduce interest rates on existing mortgages to no less
than 30 basis points below the Loan Prime Rate, the central bank’s benchmark rate for mortgages, according
to a statement released by the People’s Bank of China. It is expected to cut existing mortgage rates by about
50 bps on average. Across China, a slew of policies including reductions in down-payment ratios and
mortgage rates have been introduced this year to support China’s crisis-hit property market. - Oil alliance OPEC+ zeroes in on group compliance after postponing output hike
The OPEC+ alliance is once more cracking down on group compliance with oil output cuts, as it presses ahead
with a three-pronged plan of formal and voluntary production trims. Two OPEC+ delegates, who could only
comment anonymously because of the sensitivity of the talks, told CNBC that the coalition has sharpened its
focus on the conformity of its members with their output pledges, amid repeat overproduction from
heavyweight members such as Iraq and Kazakhstan. Russia, whose barrels are sanctioned in the West and
transported with lower visibility across a shadow fleet, has also at times exceeded its assigned quota under
the alliance’s formal policy, one of the sources said. Eight OPEC+ members, including kingpin Saudi Arabia,
were due to begin returning 2.2 million barrels per day of voluntary cuts to the market starting in October.
Earlier this month, they postponed this phaseout to start in December instead. OPEC+ nations are operating
two other production declines: under official policy, they will produce a combined 39.725 million bpd next
year. The same aforementioned eight members are separately curbing their output by another 1.7 million
bpd throughout 2025, also on a voluntary basis. - Netanyahu says killing of Hezbollah leader Hassan Nasrallah in Israeli airstrike will not be enough
Israeli Prime Minister Benjamin Netnyahu said the killing of Hassan Nasrallah was a necessary step of
achieving Israel’s defensive goals but was not enough to end the war. Nasrallah, 64, was regarded as one of
the most influential figures in the Middle East and has played a key role in transforming Hezbollah into a
major military and political force. Nasrallah led the Lebanon-based group since 1992, taking the reins after
Israel assassinated the group’s previous leader, Abbas al-Musawi. - U.S. boosts air support and hikes troops’ readiness to deploy for Middle East
The U.S. military said on Sunday it was increasing its air support capabilities in the Middle East and putting
troops on a heightened readiness to deploy to the region as it warned Iran against expanding the ongoing
conflict. The announcement came two days after President Joe Biden directed the Pentagon to adjust U.S.
force posture in the Middle East amid intensifying concern that Israel’s killing of the leader of Iran-backed
Hezbollah could prompt Tehran to retaliate. - Far-right wins close Austria election, a boost for Putin
A far-right party founded by former Nazis appeared to have won Austria’s election Sunday, in a result that
could reshape Europe’s political landscape and help tilt the balance of power between Russia and the West.
Projections from ORF public television based on exit polls suggest that the pro-Russia, anti-immigration
Freedom Party, or FPÖ, has finished first with 29.1% % of the vote. They appear to have edged out the ruling
conservative Österreichische Volkspartei (ÖVP) or Austrian People’s Party, into second place with 26.2% of
the vote. The Social Democratic Party of Austria finished third with 20.4%. The FPÖ’s victory is the latest sign
that a movement characterized by anti-immigrant and anti-Islam sentiment has made a breakthrough in the
continent. - OpenAI sees roughly $5 billion loss this year on $3.7 billion in revenue
OpenAI, the creator of ChatGPT, expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC
has confirmed. The company generated $300 million in revenue last month, up 1,700% since the beginning of
last year, and expects to bring in $11.6 billion in sales next year, according to a person close to OpenAI who
asked not to be named because the numbers are confidential. The New York Times was first to report on
OpenAI’s financials earlier on Friday after viewing company documents. CNBC hasn’t seen the financials.
OpenAI, which is backed by Microsoft, is currently pursuing a funding round that would value the company at
more than $150 billion, people familiar with the matter have told CNBC. Thrive Capital is leading the
round and plans to invest $1 billion, with Tiger Global planning to join as well. - Novo Nordisk shares fell 4.6%, and now trade about 20% below June’s record high, with JPMorgan
flagging that the Danish drugmaker’s 3Q may disappoint due to slower-than-expected sales of its
blockbuster weightloss drug Wegovy
JPMorgan analyst Richard Vosser (overweight) expects Novo to miss early 3Q consensus estimates by ~5%,
driven by assumptions that Wegovy sales will come in 9% short of expectations on a more gradual supply
ramp-up. Cautions that 3Q results, due on Nov. 6, could cause some disappointment, but that any weakness
would be a buying opportunity ahead of key data points in 4Q. - Bristol Myers Squibb Co. gained US approval for the first new type of schizophrenia drug in seven
decades, opening a fresh avenue of treatment for millions with the serious mental disorder
The medication, to be sold under the name Cobenfy, gained Food and Drug Administration clearance to treat
the illness that often produces hallucinations and delusions. Shares of Bristol rose 1.6% Friday. The new
schizophrenia treatment could change how investors think of a company largely known for cancer therapies,
said Samit Hirawat, Bristol’s chief medical officer. The approval puts us on the map that we’re not just an
oncology company, he said. Jefferies analyst Akash Tewari estimates the twice-daily pill will generate $4.7
billion a year in peak sales for schizophrenia. It was cleared without a black box warning, the FDA’s strongest
caution for severe side effects. All other antipsychotic treatments for schizophrenia carry such warnings,
Tewari said in a note. Avoiding one is an important differentiator for Bristol, particularly if the drug is
approved to treat psychosis related to Alzheimer’s disease. Getting the government to pay for the drug will
be critical to its success. About 80% of US schizophrenia patients get their health care through the Medicare
or Medicaid health programs, a greater share than many other drugs, said Adam Lenkowsky, Bristol’s chief
commercialization officer. - Wynn Resorts shares jumped 7.2% after the casino operator was raised to overweight from equalweight at Morgan Stanley, which cites a combination of discounted valuation and an underappreciated opportunity in the UAE
Analyst Stephen Grambling says despite the China stimulus-induced rally, Wynn’s valuation is still discounted,
creating an asymmetric risk-reward. Wynn Las Vegas should benefit structurally from a shift to higher end
play, positioning of new attractions, and greater reinvestment vs peers. Waiting for more details on the UAE
project at the company’s upcoming October analyst event. PT set to $104.
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