Tesla Robo Taxi Unveiling Lacks Details, US Bank Earnings Incoming

Tesla's unveiling of its autonomous taxi in Los Angeles drew lots of attention but left markets wanting more specifics, especially on timing. Meanwhile, Chinese equities continued their slide as investors got disillusioned about Beijing's fiscal plans. Major US banks like J.P. Morgan and Wells Fargo are set to release earnings today, while US PPI data will further shape expectations for Federal Reserve rate decisions.

Equities

The FTSE 100 slipped by 0.1% on Thursday, as some companies traded ex-dividend, meaning their shares no longer carried the right to the latest dividend payment. Tesco, WPP, Taylor Wimpey, and Kingfisher were among the largest fallers, dropping between 1.4% and 5%.

GSK’s shares rose 2.3% after the pharmaceutical giant settled most lawsuits in US state courts related to claims that its discontinued heartburn drug Zantac caused cancer, agreeing to pay up to $2.2 billion. This news boosted the broader pharma and biotech sector, which was up 0.8%. Additionally, precious metal miners saw gains of 2.7%, benefiting from a rise in gold prices as traders bet on a US rate cut next month.

In the US, Wall Street’s major indices edged lower. The S&P 500 lost 0.21%, while the Dow Jones fell 0.14%, and the Nasdaq dropped 0.05%. Delta Air Lines shares declined by 1% after the company forecast lower-than-expected revenue for the upcoming quarter, attributing the forecast to slower travel demand. This affected other airlines, with American Airlines shares falling 1.4%.

Energy stocks outperformed, tracking a rally in oil prices driven by increased fuel demand ahead of Hurricane Milton's landfall in Florida and concerns over supply disruptions due to Middle East conflicts.

Elsewhere, the third-quarter earnings season is set to kick off with major US banks such as J.P. Morgan and Wells Fargo scheduled to report results. Investors anticipate a 5% year-over-year earnings growth rate for the S&P 500 this quarter.

Forex & Commodities

The US dollar slipped from its two-month highs on Friday following a rise in jobless claims, boosting expectations of a quicker Federal Reserve rate cut. The dollar index dropped 0.28% to 102.89 after hitting a high of 103.17 on Thursday. Meanwhile, sterling weakened by 0.08%, trading at $1.3050, as it edged closer to its lowest point since September. The Australian dollar remained stable at $0.67395, though it has seen a 0.75% decline for the week amid wavering expectations around Chinese stimulus.

Gold prices rose 0.6% to $2,644.16 per ounce, supported by increased bets for a US rate cut in November, although it remains 0.3% down for the week.

Oil prices surged, with Brent crude rising 3.7% to $79.40 a barrel and US WTI crude gaining 3.6% to $75.85. The spike was driven by fuel shortages in Florida due to Hurricane Milton and ongoing tensions in the Middle East, which have kept investors on edge.