*MARKET UPDATE ASIA SESSION*
Forex, Commodities and Indices
Friday, November 01, 2024
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All three US stock indexes closed lower on Thursday after Microsoft and Meta Platforms highlighted rising artificial intelligence costs that could hurt their earnings, curbing enthusiasm for the megacaps that have fueled this year’s market rally.
Meta Platforms, the owner of Facebook, slipped 4.1% and Microsoft dropped 6%, even though both companies beat revenue estimates in results reported after the close on Wednesday.
The dollar weakened against the Japanese yen on Thursday, after a less dovish Bank of Japan statement and US data showed rising price pressures continued to ease, keeping the Federal Reserve on track to cut interest rates by 25 basis points next week.
Data on Thursday showed US consumer spending rose slightly more than expected in September, putting the economy on a higher growth trajectory heading into the final three months of the year.
Gold eased to $2,750 an ounce on Thursday after testing a record high of $2,790 earlier in the session, as markets continued to gauge demand for safety and protection from pro-inflationary developments if the U.S. economy bucks the pressures of lower Federal Reserve conditions. New data showed strong aggregate personal income and spending, inflation indicators that remain above target, and a sharp decline in low jobless claims.
Oil prices continued their advance after Thursday’s settlement, rising more than $2 a barrel amid reports that Iran is preparing to attack Israel from Iraqi territory in the coming days.
Israeli intelligence reports that Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the U.S. presidential election in November. 5, Axios reported on Thursday, citing two unnamed Israeli sources.
The dollar index fell slightly to 103.9 on Thursday but is set to close October up 3%, marking its strongest monthly gain in more than two years. The latest data reinforces the view that the Fed may adopt a more cautious approach to rate cuts than initially expected.
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