The end of October has arrived, with the Halloween party long awaited by Americans, and the actions take more than a month to scare at the end of the month. European stock markets end the month in redwhile on the other side of the Atlantic only nothing against the flow the Nasdaq 100, after attacking its all-time highs this week. This is the worst month so far in 2024 for Europe’s benchmark EuroStoxx 50, with just two months to go until the end of the year. due to its 3.5% drop in the monthly calculation. The index is suffering the biggest drop since August 2023. On both sides of the puddleTHE avalanche The business results have not been easy for the stock markets to digest, while the expected presidential elections in the United States are already five days away and after this meeting of the polls, the next meeting of the Federal Reserve, which prompts investors to be more careful with your stock market purchases.
Although in the middle of this week there was a possibility that the European indices would close the month of October in a positive way, in the end only the The Milan index achieves this, recording an increase of 0.5% in the monthly balance. On the other hand, the Cac 40 drop of almost 4% in the last 31 daysgiven the disappointment that the results of many of its companies have given to the market, such as the luxury companies LVMH or the automobile company Renault, among others. This led the Paris Stock Exchange to also fall by almost 3% per year, after having managed to become positive for the year this month, it remains the selective which achieves the worst performance in 2024.
The European index is the second most bearish of the month, as mentioned previously it falls by 3.5%, which brings the index to 4,830 pointslosing its first key support, which Ecotrader analyst and strategist Joan Cabrero said was between 4,900 and 4,870 points. But it is not entirely negative, since the expert claims that by losing these levels, “we could witness a broader phase of consolidation, which would be more similar and proportional to the last phase of consolidation before the fall of august”. For the analyst, this would be “good news”, in the event that “this broader consolidation finally forms, which could take the EuroStoxx 50 up to the September minimum zone of 4,730 points”. I would see this as an opportunity to buy the European stock market again“.
At the same time, the Ibex 35 and the German Dax fell by 1.3% and 1.7% respectively. Despite the fact that the Spanish stock market recorded new intraday all-time highs this month, the 12,023 points, Ultimately, it failed to close at these levels and ended the month around 11,680 points. Cabrero explains that “there will be no change in the bullish situation of the Spanish selective until it loses this support of 11,560 and 11,600 points, which is the yellow line or support that must be monitored in the short term “, since “everything indicates that” it is only a matter of time before the Ibex 35 ends up exceeding 12,000 points, to try to overcome the next obstacle that is will find at 12,240 points”.
The expected start of the long-awaited balance sheet season was complicated on the Old and New Continent, even if on the latter, Tesla’s impressive results managed to overturn the price of the Nasdaq and the S&P 500 last Thursday, thanks to its increase of 20% after the presentation of its accounts. From there, he begins a rally bullish trend for technology companies, which ended on Wednesday due to the falls of AMD and Super Micro on the stock market, and with it the rest of the semiconductor companies.
This week, five of the seven Magnificas were due to present their results, and there are already three: Alphabet far exceeded market expectations, but Microsoft and Meta did not convince investors and are harming the two main Wall Street indices by the European fence. In addition, the strength of the US economy has reinforced the market’s view that there will be no increase in interest rates, which, accompanied by caution, additional before Harris and Trump meet at the polls, led investors to withdraw their positions.
Meanwhile, investors in US stocks are awaiting new data from Apple and Amazon as well as Friday’s unemployment report, which will be presented at the end of Thursday’s session, at the European close, by the technology selective. limited its monthly increase to around 1%while the US benchmark, the S&P 500, was more affected and fell slightly on a monthly basis. On the other hand, the Dow Jones industrial index is behind the European close and lost 1% over the month.
