Global Market Report - October 30

Europe

Eurozone growth for the quarter disappointed, with a rise of just 0.2% in last three months, against a forecast of 0.4% growth. Markets in the eurozone fell across the board.

The FTSE 100 was managing to hold above 7,000 after yesterday’s strong gains, helped by a rise in index heavyweight BP (BP.) as well as some high-profile mining stocks. BP’s gains were fuelled by the best underlying profit in five years in the third quarter. The current share price of 554p is similar to levels seen in the run-up to the Deepwater Horizon disaster, which cost the company billions and sent the share price down to the low 300p level.

The UK's 2018 Budget was a relative non-event in stock market terms, while the Chancellor's expansionary fiscal stance fuelled the decline in sterling against the dollar and euro.

North America

Recent volatility in tech stocks creates an inauspicious backdrop for Facebook (FB) to release earnings. Last earnings seasons saw shares in the social media giant crumble on weaker growth forecasts, despite comparatively benign market conditions at the time.

Apple (AAPL) completes the tech leg of earnings season with results after the market closes on Thursday.

Amazon (AMZN) shares got hammered yesterday, shedding nearly 8% on the day amid a wider sell-off for tech stocks.

Today’s consumer confidence index for October is expected to show a slight dip from September’s level. Then non-farm payrolls numbers on Friday cap an eventful week for data releases.

Provisional Mexican GDP data is due today for the third quarter. On a year on year basis, growth is expected to have dipped to 2.4% from the previous quarter. But on a quarter by quarter basis, the Mexican economy is forecast to have grown by 0.5%.

In Canada, GDP data on Wednesday is expected to show that the economy grew by 0.1% month on month in August and is 2.4% larger than the year before.