US equities recorded another week of gains. Banks were big winners this week while Energy stocks pulled back in sympathy with oil prices, which retreated as fears of possible Israeli attacks on Iran’s oil and gas infrastructure subsided. The small-cap Russell 2000 Index and the S&P MidCap 400 Index outperformed large-caps. After lagging for much of the week, the Nasdaq Composite rallied during Friday’s trading session. Strong quarterly results from Taiwan Semiconductor Manufacturing boosted AI-related stocks. The Nasdaq also received a lift from Netflix, which grew its subscriber numbers and expanded its operating margins by more than expected in the third quarter. On the Macro side, US retail sales and weekly jobless claims surprised positively while industrial production dropped 0.3% in September after increasing 0.3% in the preceding month. US Treasury yields ended only marginally changed with the long-end modestly outperforming. In Europe, both the ECB and the Bank of England cut rates, as expected. Both EU and UK inflation numbers for September were lower than thought. The STOXX Europe 600 Index ended 0.58% higher while the Nikkei 225 Index was down 1.58% over the week. The Shanghai Composite Index gained 1.36% as the central bank unveiled more support measures- Although the dollar rose (back to July level), Gold ripped above $2700 for a new record high this week while bitcoin hit $69k. Both seem to be boosted by rising odds of a Trump victory and a Republican sweep.
Have a great week-end
Charles for the team