Spreadex Market Update
Dull US open keeps markets the same; Morgan Stanley sees 42% drop in Q3 earnings
As expected the Dow Jones opened around 20 points lower; not enough to truly change the situation in Europe, but still enough to put a bit of a dampener on the Eurozone’s gains. The biggest news from the US this Monday was the colossal 42% drop in Morgan Stanley’s third quarter earnings, falling to $939 million after the China-inspired chaos of August and September lead to a ‘difficult environment’ for the bank. Understandably the company’s stock took a tumble, falling nearly 6% to a 2 week low and, in the process, cementing a less than spectacular quarter for the US banking sector.
With a rather dull US open out of the way, the European indices largely continued along the path they began the day on. That meant the DAX hovered near fresh one month highs, even if its progress to some classic 3 digit gains was interrupted by the US-meekness. The FTSE, meanwhile, slipped by around 25 points as its commodity stocks, led by the likes of Anglo American, Premier Oil, Lonmin and KAZ Minerals, continued to be shaken by China’s latest set of dismal data.
There should be some more action tomorrow, with a series of speeches from FOMC members culminating in a talk from Fed chair Janet Yellen in Washington. Investors, as ever, will be hoping for a bit more clarity from the central bank in regards the timing, and pace, of the bane of the markets’ life that is a potential (read, inevitable) US rate hike.
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