- Asian Shares Trade in Range, Gold Rises to Record: Markets Wrap
Asian shares were mixed as investors waited for further trading catalysts. Gold touched a record high as
Middle-East tensions stoked demand and investors positioned for the US presidential election. China’s CSI
300 Index climbed after the nation’s banks cut their benchmark lending rates, adding to optimism over recent
stimulus measures. Shares also advanced in South Korea, Taiwan and Australia, but fell in Hong Kong.
US equity futures were little changed after the S&P 500 notched up a sixth straight weekly increase, boosted
by corporate earnings and signs of economic resilience. - Dow, S&P 500 close at record highs and mark the year’s longest winning streak
Both the S&P 500 and the Dow Jones Industrial Average surged to new record highs Friday, sealing six
straight weeks of gains. The broad market benchmark advanced 0.40% to close at 5,864.67. The Dow Jones
Industrial Average gained 36.86 points, or 0.09%, to end at 43,275.91. The Nasdaq Composite, led by a
postearnings jump in Netflix, ended the day up 0.63% at 18,489.55. The three major averages clinched their
sixth straight positive week. This marked the longest string of weekly advances in 2024 for both the Dow and
S&P 500, which respectively ended 0.96% and 0.85% higher. The Nasdaq climbed 0.80%. Netflix climbed 11%
on Friday after the streaming giant beat Wall Street’s earnings and revenue estimates in the third quarter,
while reporting a 35% jump in ad-tier memberships from the prior three-month period. Procter &
Gamble also reported better-than-expected earnings, while revenue fell short of estimates. - Oil prices steady after 7% weekly drop
Oil prices steadied in early trading on Monday, following a more than 7% drop last week on worries about
demand in China, the world’s top oil importer, and an easing of concerns about potential supply disruptions
in the Middle East. Brent crude futures rose 8 cents, or 0.11%, to $73.14 a barrel by 0120 GMT. U.S. West
Texas Intermediate crude futures gained 10 cents, or 0.14% to $69.32 a barrel. Brent had settled down more
than 7% lower last week, while WTI lost around 8%. - Gold hits fresh high in record-setting rally amid global uncertainties
Gold rose to a fresh high on Monday, extending its blazing rally amid uncertainties surrounding the U.S.
election, simmering Middle East tensions and rate cuts by major central banks, while silver scaled a near 12-
year peak. Spot gold was up 0.4% at $2,731.79 per ounce, as of 0331 GMT, after hitting an all-time high of
$2,732.73 earlier. U.S. gold futures were 0.6% higher at $2,746.80. Helped by bullion’s rally, spot silver rose
1.3% to $34.08 per ounce, its highest since late 2012. - Chinese Banks Slash Lending Rates to Bolster Ailing Economy
China cut its benchmark lending rates after the central bank lowered interest rates at the end of September
as part of a series of measures aimed at reviving economic growth and halting a housing market crash.
The one-year loan prime rate was lowered to 3.10% from 3.35%, while the five-year LPR was reduced to
3.60% from 3.85%. - Asia Hedge Funds Outperform Global Peers on September Rally
A surge in Chinese stocks last month helped Asia hedge funds pull ahead of global peers for the first three
quarters, after three years of trailing performance. Quantedge Capital Pte., Will Li’s Ocean Arete Ltd. and
Timothy Wang’s Monolith Management were among funds whose wagers on China’s introduction of more
aggressive stimulus paid off. - Harris Says Trump’s Profanity, Vulgar Remarks Will Repel Voters
Vice President Kamala Harris predicted former President Donald Trump’s lack of decorum would be a
disqualifier with voters as the candidates are locked in an exceedingly tight race with 16 days to go. He’s not
earned the right. And that’s why he’s gonna lose, Harris said Sunday in an interview with the Rev. Al
Sharpton on MSNBC. - US Posts $1.8 Trillion Annual Deficit, Highest Outside of Covid
The US government’s budget deficit hit its highest since the Covid pandemic years in 2024, propelled by
increased debt interest costs and higher Social Security and defense spending, which more than offset a
boost in tax revenues. - What to Know About the BRICS Group of Countries Rivaling the G-7
The BRICS group of emerging-market powers, the acronym stands for Brazil, Russia, India, China and South
Africa, has gone from a slogan dreamed up at an investment bank two decades ago to a real-world club that
controls a multilateral lender. It almost doubled in size in 2024, pairing several major energy producers with
some of the biggest consumers among developing countries and potentially enhancing the group’s economic
clout in a US-dominated world. Dozens more countries have expressed interest in joining its ranks. The BRICS
group expanded in early 2024 to include Iran, the United Arab Emirates, Ethiopia and Egypt. Saudi Arabia was
also announced as a new member, though the kingdom has yet to take a final decision on whether to join.
Argentinian President Javier Milei, who took office in December 2023 and is steering his country’s
geopolitical alignment toward the US and away from China and Brazil, declined a membership invitation. The
nations still seeking admission include Malaysia, Thailand and Turkey. Further enlargement is likely to be
discussed at a summit in Kazan, Russia, on Oct. 22-24. - World Economy Fault Lines Shift From Prices to Politics and Debt
The global economy is heading toward year end with unexpected tailwinds as slowing inflation clears a path
for an unlikely soft landing. But while the economics side of the equation is looking up, political hurdles lie
ahead. Hanging over the outlook is the toss-up US presidential election that offers starkly different economic
outcomes for the world. - Iran aided Russia against Ukraine. Now it needs to call in the favor
Iran has been one of Russia’s few staunch allies throughout the war against Ukraine, but Tehran now faces
the strain of indirectly fighting its nemesis Israel on two fronts. Iran could do with help from its powerful ally,
Russia. The extent to which Moscow will, and can, help is uncertain. If the Russians are going to bail on this,
it’s going to have consequences with regards not only to its relationship with the Iranians, but to any other
partner, such as the Chinese, Chatham House’s Bilal Y. Saab told CNBC. - Israel pounds Beirut and Gaza after rockets hit Israel’s north
Israel struck what it said were Hezbollah arms facilities in southern Beirut on Saturday after the Lebanese
armed group fired rockets into northern Israel and a spokesman said a drone was launched at Prime Minister
Benjamin Netanyahu’s holiday home. Netanyahu was not there at the time, and it was not immediately clear
if the building was hit. But he described it as an assassination attempt by Iran’s proxy Hezbollah and called it
a grave mistake, as Israel prepares to retaliate for an Iranian missile barrage earlier this month. - Indian retail group seeks antitrust probe of quick commerce companies Swiggy, Blinkit, Zepto
India’s biggest group of retail distributors has asked the antitrust authority to investigate three quick
commerce companies, Zomato’s Blinkit, Swiggy and Zepto, for alleged predatory pricing, a letter showed.
Quick commerce is a new shopping rage in India, with companies promising deliveries of anything from
groceries to electronics within 10 minutes, reshaping how Indians shop and challenging e-commerce giants
such as Amazon. - Sales of Apple’s newest iPhones in China are up 20% in their first three weeks compared with 2023’s
model
The iPhone 16 debuted in September and has outperformed its predecessor so far, according to
Counterpoint Research data. Consumers continue to shift to the pricier models, and sales of the top-end Pro
and Pro Max models gained 44% compared with last year’s equivalents. While just a three-week snapshot,
the data suggests Apple’s 2024 launch is faring better than last year’s. Production issues hampered the
iPhone 15 family early on, which may have constrained initial sales, Counterpoint analyst Ivan Lam said.
Apple shares rose to a record this week, fueled by optimism around the rollout of the artificial-intelligencepowered iPhones.
The stock gained 1.2% on Friday. Analysts had warned that the iPhone 16 might fare poorly
in China, given the absence of a local partner to power AI features. Beijing has barred foreign-developed AI
models, meaning Apple may have to secure a local partner such as Baidu Inc. - American Express shares fell 3.1% after the firm trimmed its full-year revenue forecast as it awaits signs
of economic improvement that will fuel further consumer spending
The company predicts revenue for 2024 to increase about 9% compared to a prior prediction of a 9%-11%
jump, it said in a presentation reporting third-quarter earnings. While revenue for the period hit another
record at $16.6 billion, the haul just missed analyst estimates. Amex Chief Executive Officer Steve Squeri said
that 10% revenue growth is the right aspiration to strive for, and cited the need to see the economy
strengthen and for billings to improve to achieve that. Still, Amex lifted its full-year earnings per share
guidance to $13.75 to $14.05 and reported earnings per share of $3.49 and net income of $2.51 billion in the
third quarter, both surpassing estimates. Consolidated expenses jumped 9% to $12.1 billion as the company
spent more on marketing. Amex also posted an increase in provisions for credit losses to $1.4 billion as write
offs rose, slightly higher than analysts expected. - CVS Health shares fell 5.2% after the retail pharmacy chain reported third-quarter preliminary profit
that fell short of Wall Street’s expectations, plus higher-than-forecast medical costs. The company also
named David Joyner as its new CEO, replacing Karen Lynch
PRELIMINARY THIRD-QUARTER RESULTS: Prelim 3Q Adj Net $1.32B to $1.39B. Prelim adjusted EPS $1.05 to
$1.10, estimate $1.70. COMMENTARY: CVS Names David Joyner President, CEO. CVS Names Roger Farah
Chairman of Board. CVS 3Q Medical Benefit Ratio Expected to Be About 95.2%. Experienced Medical Cost
Trends in Excess of Projections. Investors Should No Longer Rely on Prior Guidance. Cites High Medical Cost
Pressures in Health Care Benefits. - SLB, the world’s biggest oilfield services provider, warned oil explorers’ spending growth has waned in
recent months as they take a cautious approach amid lower crude prices
The company, which helps clients drill oil wells and map underground pockets of crude, however also told
investors Friday that it expects to exceed its target of $3 billion in shareholder returns this year as most of its
customers’ projects are going ahead. Looking to next year, SLB is gearing up for producers outside the US and
Canada to grow spending by low-to-mid single digits, while North American operators could see their drilling
budgets flat to down compared with this year, Chief Executive Officer Olivier Le Peuch said. But long-term
projects haven’t been touched, he said, adding that final investment decisions for offshore work between
2023 and 2026 will top $500 billion. Although some customers have adopted a more cautious approach to
their near-term capital expenditures and discretionary spending amid lower commodity prices, most projects
are progressing as planned, Le Peuch said. Although the rate of upstream spending growth has moderated in
the last few months due to the macroenvironment, we continue to expect a sustained level of upstream
investment in the years to come. The company posted third-quarter earnings of 89 cents a share, excluding
certain items, matching what analysts expected, while sales of $9.16 billion were slightly less than
forecast. Shares fell 4.7%. - Intuitive Surgical shares gained 10% after the company reported third-quarter adjusted earnings per
share that came ahead of estimates. Piper Sandler said it was encouraged by another strong quarter of
placements for the da Vinci 5, a surgical robot that makes it easier for surgeons to understand movement
inside the body during operations
THIRD QUARTER RESULTS: Adjusted EPS $1.84, estimate $1.64. Revenue $2.04 billion, +17% y/y, estimate $2
billion. Worldwide procedure growth +18% vs. +19% y/y, estimate +17.1%. Surgical system placements 379,
+21% y/y, estimate 326.84. Da Vinci Surgical System installed base 9,539 systems, +15% y/y, estimate 9,498.
COMMENTARY: In October 2024, the Company obtained regulatory clearance in South Korea for the da Vinci
5 surgical system for use in urologic, general, gynecologic, thoracoscopic, thoracoscopically-assisted
cardiotomy, and transoral otolaryngology surgical procedures. - Perplexity AI seeks valuation of about $9 billion in new funding round
Perplexity AI has started a new round of fundraising talks, seeking to more than double its valuation about $9
billion, CNBC confirmed. Perplexity’s artificial intelligence search engine is trying to chip away at Google’s
dominance. The company is looking to raise roughly $500 million. - Eutelsat uses SpaceX rocket to launch first satellites after merger
Eutelsat, the world’s third-biggest satellite operator by revenue, launched 20 satellites for its
communications network on Sunday, using Elon Musk’s SpaceX in its first move since the merger of two
European companies last year. A SpaceX Falcon 9 rocket took off, with Eutelsat satellites from California’s
Vandenberg Space Force Base at 0513 GMT. This is the first OneWeb launch of the satellites since the
merger, CEO Eva Berneke told Reuters in an interview. We will be launching more satellites over the coming
years. The Paris-based group formed by the merger in September last year of France’s Eutelsat and Britain’s
OneWeb has a constellation of over 600 low earth orbit satellites that cater to broadcasters, telecom
companies and radio stations.
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