“`html
The S&P 500 Index is up 1.01%, the Dow Jones is up 0.86%, and the Nasdaq 100 is up 1.29%, with December E-mini futures also showing gains of 1.01% for the S&P and 1.31% for Nasdaq. Improved market sentiment follows President Trump’s recent comments on US-China trade relations, stating, “I think we’re going to be fine with China.” The ongoing Q3 earnings season, with 85% of reported S&P 500 companies surpassing expectations, further supports this positivity.
In key economic developments, China reported a stronger-than-expected Q3 GDP growth of 1.1% quarter-over-quarter and 4.8% year-over-year, outpacing forecasts of 0.8% and 4.7%, respectively. Additionally, China’s September industrial production increased by 6.5% year-over-year, and the jobless rate fell to 5.2%. In contrast, the US government shutdown continues into its fourth week, with an estimated 640,000 federal workers expected to be furloughed, leading to a potential rise in the unemployment rate to 4.7%.
Markets are currently pricing in a 99% chance of a 25 basis points rate cut at the upcoming FOMC meeting on October 28-29. Meanwhile, European stock markets have shown gains, with the Euro Stoxx 50 rising 0.96%, and Germany’s 10-year bund yield is slightly up to 2.588%.
“`
