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International Market Update
- European stocks closed higher on Thursday as markets reacted to the U.S. Federal Reserve’s announcement that it will reduce its bond-buying program and the Bank of England’s decision to leave interest rates unchanged for now. The pan-European Stoxx 600 was up 0.4% by the close of trading, with the technology sector the gainers, up 1.4%, while banks were down 2% following the Bank of England’s latest announcement. Markets focused on the Bank of England’s decision to keep interest rates on hold. This defied expectations from some investors that it would be the first major central bank to raise interest rates post-pandemic.
- The S&P 500 rose for a sixth straight day Thursday as investors took comfort in the Federal Reserve’s patient stance on a rate hike. Stronger-than-expected economic data also buoyed sentiment. U.S. jobless claims came in at 269,000 for the week ended Oct. 30, the lowest level since the pandemic and better than the 275,000 forecast by the Dow Jones. The highly anticipated October jobs report will be released today. Consensus estimates are for 450,000 jobs added, according to Dow Jones. Nonfarm payrolls rose 194,000 in September, well below the estimate of 500,000.
- Stocks in the Asia-Pacific region were mixed in early trading, with shares in Hong Kong leading losses in the region’s major markets. Shares of Chinese property developers in Hong Kong fell. China Evergrande Group slipped 2.12%, while China Vanke fell 1.27% and Sunac China Holdings dropped more than 4%.
In International news
Uber revenue surges 72% from a year ago, but Didi stake contributes to big loss
Uber reported its third-quarter results after the bell on Thursday. After an initial decline, shares rose about 1% in after-hours trading. Uber reported a net loss of $2.4 billion for the quarter, largely due to a decline in the value of its investments, particularly in Didi. The company said its investments in Zomato, Aurora and Joby helped offset some of that loss. In the year-ago quarter, Uber posted a net loss of $1.09 billion. The company posted an adjusted EBITDA profit of $8 million, down from an adjusted EBITDA loss of $507 million in the second quarter.
Moderna shares fall after company cuts 2021 sales forecast for Covid vaccine
Moderna shares fell more than 16% on Thursday after the company lowered its sales guidance for its Covid-19 vaccine for the year and missed earnings and revenue expectations for the third quarter. The company said some doses scheduled to ship this year have been delayed until early 2022 due to production issues as it prioritizes shipments to low-income countries under COVAX, the United Nations-backed coronavirus vaccine sharing project. The company now expects Covid vaccine sales of $15 billion to $18 billion this year, up from a previous expectation of $20 billion.