European stock markets are anticipated to commence the week on a positive note, with the exception of the U.K., where a slight downturn might occur following a significant decline in oil prices.
This week promises to be eventful for markets as the U.S. presidential election draws near. Major U.S. corporations such as Apple, Microsoft, Alphabet, Meta, Amazon, Intel, Advanced Micro Devices, McDonald's, Eli Lilly, ExxonMobil, and Starbucks are set to announce their earnings.
In terms of economic indicators, the forthcoming reports on U.S. GDP growth, consumer confidence, pending home sales, manufacturing sector activity, employment figures, and data on personal income and spending—which includes the Federal Reserve's favored inflation metrics—could heavily influence the Fed's impending interest rate decisions.
In Asia, markets largely traded in positive territory ahead of key economic data from China expected later this week. Japan's Nikkei surged nearly 2 percent following a downturn for the ruling party in the lower house, which weakened the yen and bolstered major exporters' stocks. Despite the election outcome, some analysts believe the Bank of Japan will maintain its stance on rate hikes.
Meanwhile, gold prices dipped due to a stronger dollar and as Egypt proposed a two-day truce in Gaza, aiming for a "complete ceasefire" following over a year of conflict between Israel and Hamas. Oil prices dropped nearly 5 percent in Asian trading after Israel's weekend retaliatory strike on Iran avoided targeting Tehran's oil and nuclear facilities.
On Friday, U.S. stocks showed mixed results, as investors prepared for a week filled with earnings reports and economic data releases. Adding to economic optimism, a survey revealed an unexpected improvement in U.S. consumer sentiment in October. The Dow Jones Industrial Average fell by 0.6 percent, marking its fifth consecutive day of losses, while the S&P 500 saw a slight decline. In contrast, the Nasdaq Composite Index increased by 0.6 percent, bolstered by Tesla's strong performance.
European markets ended Friday with a modest downturn as the third-quarter earnings season progressed. The pan-European STOXX 600 remained largely unchanged, trending slightly negatively. Germany's DAX inched up by 0.1 percent, whereas France's CAC 40 fell slightly, and the U.K.'s FTSE 100 decreased by 0.3 percent.
