Global Markets Report - 21 October
ASX set to open higher, after US stocks ended higher on Friday.
Australia
Australian shares are set to open higher, after US stocks rose as investors parsed the latest earnings reports with the major averages gaining for a sixth consecutive week.
ASX futures were up 0.52% or 44 points as of 8:00am on Monday, suggesting a higher open.
Netflix shares rallied 10.9% after the streaming company delivered its most-profitable quarter ever, but other blue-chip results were less well-received. American Express stock skidded 3.1% after the credit-card company's revenue missed expectations.
So far, a small portion of the S&P 500 has reported third-quarter results. Of those companies that have issued earnings, about four-fifths have topped analysts' estimates, in line with previous quarters. Crucially, most of the big banks have posted strong earnings, adding to hopes of a soft economic landing.
Technology stocks lifted the S&P 500 and Nasdaq Composite, which closed with gains of 0.4% and 0.6%, respectively. The Dow Jones Industrial Average rose 0.1% to a new record.
In commodity markets, Brent crude oil was down 1.9% to US$73.06 a barrel, while gold was up 1.1% to US$2,721.46.
The Australian dollar was at 67.07 US cents.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index rose 2.9% to 3,261.56, and the Shenzhen Composite Index lifted 4.1% to 1,906.86.
Hong Kong shares ended higher. The benchmark Hang Seng Index added 3.6% to 20,804.11.
Japanese shares closed higher. The Nikkei Stock Average gained 0.2% to 38,981.75.
India shares ended higher. The BSE SENSEX increased 0.3% to 81,224.75.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index lost 0.3% to 8,358.25.
In Europe, shares closed higher. Germany's DAX rose 0.4% to 19,657.37, and France's CAC 40 added 0.4% to 7,613.05.
North America
U.S. stocks ended higher. The DJIA gained 0.1% to 43,275.91, the S&P 500 increased 0.4% to 5,864.67, and the Nasdaq lifted 0.6% to 18,489.55.
Among S&P 500 companies, the top three gainers were Netflix Inc, surging 11.09%, Lamb Weston Holdings Inc jumped 10.17%, and Intuitive Surgical Inc lifted 10.01%.
The biggest decliners were Bunge Global SA which dropped 6.33%, CVS Health Corp fell 5.23%, and The Cigna Group lost 4.85%.