Investors on Wall Street are focused on the Fed meeting on 27-28 October.
Traders’ positioning last week was dictated by the possibility of an interest rate rise, or no change, prompting first a wave of hurried selling and then targeted buying. The result was a swing in the S&P 500 between 7,821 and 7,631 points, as the third-quarter earnings season “got under way” in New York.
The S&P 500 stood at 7,659.44 points, down for the week, unlike the DJIA.
Once again, corporate results helped limit pressure on Wall Street. The 32 companies to have reported so far got off to a strong start, with earnings up 52.5% and 81% beating estimates.
On Tuesday, the day after tomorrow, 3M, GE Aerospace, General Motors and Philip Morris report before the market opens, while Intuitive Surgical and Netflix report after the close.
On Wednesday 21 October, Abbott Laboratories, AT&T, CME Group and Thermo Fisher Scientific report before the open, while IBM, Lam Research and Tesla report after the close. On Thursday 22 October, Blackstone and Procter & Gamble report before trading begins, followed by Ford and Newmont after the close.
Finally, on Friday 23 October, American Express and SLB report before the market opens. All this comes in the final stretch before the midterm elections on 3 November.
In Europe, violent clashes in Paris, Marseille and other French cities are exacerbating the already tense climate in the continent’s second-largest economy, fuelling fears that a crisis could spread to debt markets.
Why is the bond market not “obeying” Washington? El-Erian asks and explains, as the US 10-year yield stands at 5.0850%. Among European bonds, the equivalent yield is 4.7856% for France, 3.4109% for Germany and 4.4786% for Italy.
Are markets heading towards a tipping point? The so-called “tipping point” is widely discussed in the investment community, with much expected to become clearer the day after the midterms, depending on the election result and the developments set in motion in the US and Europe.
US plan for natural gas to return to Europe is tied to geopolitics and the European economy’s ability to withstand expensive energy and higher interest rates and borrowing costs.
The DAX stood at 25,622 points after an upward correction of 2.07%, while the CAC 40 was at 7,956, up 1.97% for the week. The EuroStoxx Banks stood at 291.18, down 1.03% for the week but up 0.85% on Friday. The trend appeared to influence shorter-term investors’ positioning on the Greek stock market: in the week’s final session, the bank index rebounded 1.87% to 3,032.81 points.
The bank index’s upward correction was 1.64% for the week, contributing to a 2.12% gain for the General Index, which closed at 2,613.49 points. The FTSE 25 also rebounded, rising 1.49% to 6,644.80 points. Average trading value was €304.6m, compared with €357.9m the previous week.
After three consecutive weeks of losses, Manos Chatzidakis reminds us that the market is in a phase of shifting positions and balances following the upgrade and rebalancing. The head of research at BETA Securities said: “...the successful public offering of shares in Capital Maritime Finance, which was significantly oversubscribed, is a strong indication that liquidity is available and investor interest is looking for an outlet, keeping the market alert for new investment proposals...”
On Tuesday, Capital Maritime Finance is due to list, with bids exceeding €1bn and management able to raise as much as €300m. The listing adds scale (a valuation of more than €1bn) and depth to the sector, with another four to six shipping companies expected to follow. After CMF, the investment community’s attention is turning to the possibility of METKA also listing on Euronext Athens.
Two key investment meetings for listed companies are highlighted by Alexandros Eleftheriadis, the first taking place in Athens on 2 November: the Small Cap Conference 2026.
As Alexandros notes, 14 mid-cap companies are taking part: Alpha Trust Andromeda, AS Company, Biokarpet, Daios Plastics, Elton Group, European Innovation Solutions, Lanakam, Quality & Reliability, Revoil, Softweb, Trek Development, Unibios, Verallis and Y/KNOT Invest. The event will be held at the Divani Caravel.
On Wednesday, Papoutsanis’ management kicks off the release of nine-month (third-quarter) results. A presentation to the Association of Institutional Investors is scheduled for the following day. Euronext Athens is also entering the nine-month (third-quarter) results season, giving analysts and investors the chance to build a broader picture of companies’ results and prospects. Dr Panos Dantis focused on cash-flow signals from six listed companies: Ilyda, Quest, Dotsoft, Softweb, Vidavo and Logismos.
The day after tomorrow, Fourlis will present its new business plan to the investment community. On the same day, Allwyn shares will trade ex-dividend, with an interim dividend of 0.20 per share.
At the end of the week, on 23 October, rating agency S&P will announce its decision on Greece’s credit rating.