- China’s Stock Rally Cools as Beijing Holds Off on Major Stimulus
A rally in onshore Chinese stocks on their return from a week-long holiday cooled as traders questioned
Beijing’s resolve to add more stimulus. Shares in Hong Kong tumbled. The benchmark CSI 300 Index ended
the morning session up 6.1% after surging almost 11% in the opening minutes. That was after officials at
China’s top economic planner, the National Development and Reform Commission, held back in unleashing
any more major stimulus at a press briefing. - Dow closes lower by nearly 400 points as surging oil prices and rising Treasury yields weigh on stocks
Stocks struggled Monday as rising oil prices and higher Treasury yields weighed on market sentiment.
The Dow Jones Industrial Average dropped 398.51 points, or 0.94%, ending at 41,954.24. The S&P 500 slid
0.96% to 5,695.94, and the Nasdaq Composite lost 1.18% to close at 17,923.90. The benchmark 10-year
Treasury yield rose more than 4 basis points to 4.02%. That marks the first time since August that the yield
topped 4%. Oil prices also rose as tensions in the Middle East remain high. U.S. crude climbed more than
3% to settle above $77 per barrel. Monday’s moves come after a bumpy week for stocks that saw the major
averages grind out modest gains. The S&P 500 added 0.2% for the week, while the Nasdaq Composite inched
up 0.1% and the Dow added 0.1%. - Oil edges lower after rallying to highest in over a month on Middle East war risk
Oil prices edged lower in early Asian trading hours on Tuesday as traders booked profits after prices rallied to
their highest in over a month on Monday amid fears that the Middle East could be on the brink of a region-
wide war. Fighting in the Middle East intensified after Iran-backed Hezbollah fired rockets at Israel’s third-
largest city, Haifa, and Israel looked poised to expand its offensive into Lebanon, a year after the Hamas
attack on Israel that sparked the Israel’s ongoing war in Gaza. Brent crude futures fell 23 cents, or 0.3%, to
$80.70 per barrel by 0029 GMT. U.S. West Texas Intermediate futures fell 20 cents, or 0.3%, to $76.94 a
barrel. - Gold retreats on strong dollar, fading hopes of big U.S. rate cut
Gold prices eased on Monday as the U.S. dollar held strong and recent employment data prompted investors
to scale back expectations of a big rate cut from the Federal Reserve in November. Spot gold fell 0.4% to
$2,640.74 per ounce, off a record peak of $2,685.42 hit on Sept. 26. U.S. gold futures dipped 0.3% to $2,660.1
The U.S. dollar hovered at its highest level in seven weeks, making greenback-priced bullion more expensive
for other currency holders. - Japan’s Base Salaries Rise by Record in Positive Sign for Ishiba
Base salaries for regular workers in Japan grew at a record pace, providing a tailwind for Prime
Minister Shigeru Ishiba as he prepares to lead his party in a general election later this month.
Base pay for full-time workers rose by a record 2.9% in August from a year ago, accelerating from a 2.6% pace
in July, the labor ministry reported Tuesday. Growth in nominal cash earnings for all workers slowed to 3%, a
tad stronger than the consensus estimate. - RBA Signals Key Rate on Hold Until It’s Confident on Prices
Australia’s central bank will hold interest rates at the current 12-year high until it’s confident that inflation is
moving sustainably toward target, minutes of the last board meeting showed, suggesting policy easing still
remains some way off. The Reserve Bank’s board discussed scenarios in which future policy needed to be
held at restrictive levels for a prolonged period or tightened further, minutes of the Sept. 23-24 meeting
released Tuesday showed. It also reviewed scenarios where an easing might be required. The board
concluded that each outcome was conceivable given the uncertain economic outlook and opted to stand pat
at 4.35%. - China state planner lays out further actions to boost economy but no new plans for major stimulus
Zheng Shanjie, chairman of China’s National Development and Reform Commission, pledged a raft of actions
to bolster the country’s economy during a highly-anticipated press conference. But he stopped short of
announcing any new major stimulus plans, underwhelming investors and weakening a long rally. - Israel Fights on Multiple Fronts as War With Hamas Marks a Year
The Israel Defense Forces said it intercepted most of a barrage of rockets fired toward Tel Aviv by Hamas and
other Iran-backed groups, as fighting escalated Monday on multiple fronts after a year of war. Sirens sounded
across central Israel, and two people were injured, according to Israeli health officials. The military had
warned earlier of what it called an immediate threat of rocket fire from Hamas to mark the militant group’s
attack on the country 12 months ago. - Samsung Makes Rare Apology After Results Sag Despite AI Boom
Samsung Electronics Co. issued an apology to investors for disappointing results, admitting that the once-
dominant memory chip giant is grappling with a potential crisis after losing its way. Jun Young-hyun, newly
appointed head of the core semiconductor business, promised to overhaul the organization in an unusually
frank statement issued after Samsung disclosed worse-than-projected revenue and profit. In another filing,
Korea’s largest company confessed to delays in delivering a key type of chip used with Nvidia
Corp. processors for training AI, allowing SK Hynix Inc. to dominate the so-called high-bandwidth memory
arena. - Google Play App Store Faces Revenue Hit as Antitrust Woes Mount
Alphabet Inc. must lift restrictions that prevent developers from setting up rival marketplaces and billing
systems that compete with its Google Play Store, a judge ruled, upending the search giant’s dominance in the
lucrative Android app market and probably denting its revenue. A federal judge in San Francisco on Monday
handed a big victory to Epic Games Inc. in its long-running challenge to the technology giant’s app store,
another antitrust blow to Google following its recent major defeat in one US Justice Department case and
while it’s still fighting another. - Super Micro Computer shares are rising on Monday, with the maker of servers outperforming the
broader market as it rebounds in the wake of recent weakness
Shares up 10%; the stock remains down more than 60% off a March peak. The Nasdaq 100 Index is down
0.3% on Monday. Earlier, the company disclosed shipment data; Bloomberg Intelligence wrote that the data
suggest customer demand is robust and hasn’t been dented by the company’s internal stumbles, such as a
10K-filing delay and reported US probe. SMCI’s figures represent “a good foundation for reaching its 1Q
sales-guidance midpoint of $6.5 billion. - Sanofi shares slip as much as 2.7%, the most since May 13, after people with knowledge of the matter
said bidders for its consumer healthcare unit are revising their offers in part to address concerns around
potential liabilities related to a brand that sold talcum powder
The new bids may exclude parts of the Gold Bond business, a brand that historically sold talc-based products,
or seek to leave any future legal risks with Sanofi, the people said. The new bids may imply lower valuations
and a smaller debt package to reflect the revision, said two of the people. Talc is mined from the earth, and
most talc deposits naturally contain asbestos. A spokesperson for Sanofi said Gold Bond powders were free
of asbestos. The spokesperson also said Sanofi has made no final decisions regarding the sale and it continues
to consider options. - Constellation Brands shares fall as much as 3.9% as BofA Global Research downgraded its
recommendation on the Corona and Modelo maker to neutral from buy due to tepid beer volume growth
Analyst Bryan D. Spillane says slower growth could reflect more than just the macroeconomic environment.
We don’t expect beer sales and volumes to revert to the high end of the algorithm, Spillane writes in a note
to clients. Says that investor patience for growth capex, the wine and spirits business and governance are
likely to be tested. Sets PT to $255, down from $300. Lowers FY25 beer depletion forecast to 4.5%, from
4.8%. Cuts FY26 and FY27 sales growth forecasts from 8% to 7%. STZ has 23 buy ratings, 3 holds, and 0 sells;
average price target $293, according to data compiled by Bloomberg. Constellation Brands reported earnings
that topped and sales that trailed estimates for the quarter on Oct. 3. - Richemont shares gain as much as 2% after the luxury goods group sold its e-commerce platform YNAP to Mytheresa
Analysts were positive on the deal because the retail platform has struggled against a weaker spending
backdrop. While Richemont will write down YNAP net assets by around €1.3 billion, it will still see the group
retain some exposure to online luxury. Richemont will sell online luxury and fashion retailer YNAP to
Mytheresa with a cash position of €555m and no financial debt, according to a statement. Mytheresa to issue
shares to Richemont representing 33% of Mytheresa’s fully diluted share capital. Richemont to provide 6-
year €100m revolving credit facility to YNAP. Richemont will have the right to nominate a member and an
observer to the Supervisory Board of Mytheresa following closing. Richemont currently expects the write-
down of YNAP net assets to amount to ~€1.3 billion, which also accounts for cash to be left in YNAP upon
completion. Closing of transaction expected in 1H 2025, subject to customary conditions. - Bayer shares drop as much as 3%, worst performer in the Stoxx 600 Health Care Index on Monday
morning, as analysts at Deutsche Bank and Morgan Stanley both predict a soft third quarter
Deutsche Bank estimates a 21% drop in adjusted Ebitda and a 15% decline in adjusted EPS, analyst Falko
Friedrichs (hold) writes in a note. The glyphosate business is expected normalize further in 3Q. Meanwhile,
further declines for Bayer’s top-selling drug Xarelto along with ongoing investment in new product launches
will probably impact the pharmaceuticals business. For Morgan Stanley, Ebitda for the crop science division
could be negative in 3Q, analyst Thibault Boutherin (equal-weight) writes in a note. A strong 4Q will be
needed to meet the bottom end of Bayer’s crop science guidance. Pharmaceutical margins will be under
pressure because of the Xarelto erosion as well as investment in the pipeline and new product launches
The company is scheduled to report 3Q results on Nov. 12.
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