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60% of S&P 500 components have published earnings so far - 30.10.2015
The European stock indices show moderate growth after the fall during the previous session. In the morning the considerably week macroeconomic data were released. The September retail sales in Germany were less than forecasted. Nevertheless, investors reacted more on the increase in carmaker Renault revenue by 9.4% in the 3rd quarter. This pushed its stocks up by 5.8% and made the stocks of other carmakers cost more. The Telecom Italia stocks edged 3% up due to the additional news on their buyback and the rise in the Illiad’s share to 15%. Today at 11:00 CET the Eurozone inflation for October and September unemployment will come out. In our opinion, the outlook for euro is positive.
Nikkei index hit a 2-month high today but closed with little change from the previous closing price. In October its increase was record high in 2.5 years amounting to 9.7%. To conform more to the conditions of the recently signed Trans-Pacific trade Partnership, the Japanese government is planning to raise budget spending by 3trn yens. The funds will be allocated to the Japanese farmers and other sectors that can suffer from the increased competitiveness. Today the weak Japan’s real estate market data were released which partly cooled the stock market down.
Wheat prices today continued extending gains after the blue chip Australian CBH Group forecasted the export from Western Australia to contract by 500 thousand tonnes to 13mln tonnes in season 2015/16. This is 18% less than the September outlook from ABARES state bureau.
The soy prices were slightly up. The China National Grain and Oils Information Centre expects its imports to China to increase by 18% in the 4th quarter from the last year’s 22mln tonnes. The market reaction is moderate as the expected import is lower than the 3rd quarter reading at 24.54mln tonnes. The China’s soy purchases in 2015 will be in line with the last year’s volume of 78.36mln tonnes as yet.