MARKET WRAPS

Watch For:

France consumer confidence survey, unemployment data; Germany's Ifo Business Climate Index; Eurozone money supply; trading updates from Mercedes-Benz Group, Sanofi, NatWest Group, Signify, Airtel Africa, Eni, Safran, Remy Cointreau, Holcim

Opening Call:

European stock futures were flat as investors wrapped up a week filled with earnings and economic data. Asian stocks were muted after Wall Street closed higher on Tesla's better-than-expected earnings. U.S. Treasury yields were lower, while the dollar, oil futures and gold were little changed.

Equities:

European stock futures were muted, after markets in Asia were little changed. Tesla's shares rallied overnight on a surprisingly strong earnings report, leading tech stocks higher.

"In the near term, the greatest influence we've seen in stocks in October has been the move higher in rates." said Bill Northey, senior investment director at U.S. Bank Wealth Management.

China's central bank kept a key policy rate steady, after officials made a flurry of rate cuts last month. Tokyo's consumer inflation slowed below the Bank of Japan's target.

Forex:

The dollar weakened slightly as the Fed seems more likely to cut interest rates in November and less likely to keep them unchanged, XTB's Kathleen Brooks said.

U.S. money markets show only a 5% chance of no rate cut in November, compared to 12% previously, LSEG Refinitiv data show.

No clear election outcome would hit sentiment and weigh on growth, potentially leading to more interest-rate cuts, she added.

"This election is too close to call, and the prospect of no clear winner cannot be ruled out," she said.

Bonds:

U.S. Treasury yields edged lower, supported by demand from foreign buyers, though they stayed near multimonth highs.

The latest U.S. jobless claims reversed the spike seen earlier this month following hurricane disruptions.

Meanwhile, the U.S. Treasury's $24 billion auction of 5-year Treasury Inflation-Protected Securities was weak, BMO Capital Markets said.

Energy:

Oil prices climbed in Asia on possible position adjustment by traders.

Citi Research noted that oil prices have been relatively volatile recently. This likely reflects the "tug of war between weak underlying fundamentals and heightened geopolitical risks," Citi said.

Metals:

Gold edged lower early Friday on a possible technical correction.

The precious metal remained supported by its safe-haven appeal amid lingering geopolitical tensions in the Middle East, Exness strategist Terence Hove said.

"Uncertainty surrounding the upcoming U.S. presidential election, coupled with polls suggesting a potential Trump victory, has heightened demand for gold as a hedge against possible market volatility," he said.

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Base metals have traded higher recently as supply-side issues stayed in focus, ANZ said.

Weak treatment charges amid a tight copper concentrate market are raising concerns in China, ANZ added.


TODAY'S TOP HEADLINES

China's Central Bank Holds Key Policy Rate Steady

China's central bank kept a key policy steady in October, a widely expected move after officials made a flurry of rate cuts last month to support the ailing economy.

The People's Bank of China on Friday injected 700 billion yuan of liquidity into the country's banking system via its one-year medium-term lending facility at an unchanged rate of 2.0%.


U.K. Consumers Spooked as Budget Looms, Survey Shows

U.K. consumers are increasingly worried about the future as the new government prepares to hike taxes and cut spending, according to a survey set out Friday.

Research group GfK's measure of consumer confidence slipped again this month to minus 21 from minus 20, having tumbled sharply in September. Economists had expected confidence to regain a little ground in October, according to a poll compiled by The Wall Street Journal.


VW Pitches America's Heartland on EVs With New Scout Pickup, SUV

Volkswagen is hoping America's obsession with pickup trucks and chunky sport-utility vehicles will help boost sales in the U.S.

At an event Thursday evening, the German auto company's Scout Motors brand unveiled its first vehicles: an electric pickup and SUV, each priced around $60,000. Both vehicles have a retro, boxy style and were designed for towing and off-road use. They are scheduled to go on sale in 2027.


Gucci Has Problems. The Biggest May Be a Safe New Look.

A tough market for luxury goods is covering up deeper issues at Gucci. The brand's revamp isn't taking off yet and its owner's pockets are shrinking.

Kering, the French luxury group that is Gucci's owner, issued its third profit warning of the year on Wednesday evening as it unveiled quarterly results, and now expects 2024 operating income to be barely half of last year's levels. Its star brand is weak. Sales at Gucci fell 25% in the third quarter compared with the same period of 2023. The label has been shrinking for more than a year and its performance has fallen behind rival fashion brands at luxury giant LVMH.


New 'Call of Duty' Tests Microsoft's $75 Billion Bet on Future of Videogames

Microsoft is facing the biggest test yet of its $75 billion bet on videogames: the release of a new installment of the "Call of Duty" franchise on its Game Pass subscription service, which customers will be able to access for the first time on Friday.

The tech giant's acquisition of Activision Blizzard, the biggest deal in its history, was a wager on the future of how people will access and pay for videogames. Microsoft sought to position itself as a disrupter, believing the streaming revolution would migrate from television and film toward a growing, interactive medium with billions of rabid fans.


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Expected Major Events for Friday

06:00/DEN: Sep Central Government Finance & Debt

06:00/SWE: Sep PPI

06:00/DEN: Sep Retail sales index

06:30/HUN: Sep Employment & unemployment

06:45/FRA: Oct Consumer confidence survey

06:45/FRA: Sep Housing starts

07:00/SPN: Sep PPI

07:00/SPN: 3Q Economically Active Population Survey

08:00/GER: Oct ifo Business Climate Index

08:00/EU: Sep Monetary developments in the euro area (M3)

08:00/ICE: Sep PPI

08:00/ITA: Oct Consumer Confidence Survey

08:00/ITA: Oct Business Confidence Survey

08:30/UK: Sep Capital issuance statistics

09:00/LUX: Aug Trade

10:00/FRA: 3Q Claimant count and job advertisements collected by France Travail

13:00/BEL: Oct Business Confidence Survey

15:59/UKR: Sep PPI

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This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswires

10-25-24 0015ET