Weekly News Recap 21 – 25 October 2024

News for 21 October 2024

Gold Sees Strong Rise Towards the End of the Week

At the end of last week, gold prices rose significantly, closing at $2,721/oz. This increase was primarily driven by the depreciation of the dollar index, which fell from 103.80 to 103.46, serving as a crucial factor supporting the rise in gold prices.

On October 21 at 21:00, investors should closely monitor the International Monetary Fund (IMF) meeting, as it may provide important insights into global economic policy direction.

Overall, the outlook for gold prices remains bullish.

Energy Stocks Plunge Amid Concerns in China and the Middle East

Energy stocks fell by 0.4%, making them the worst-performing sector this week with a cumulative drop of 2.6%. A key factor contributing to this decline is the 7% drop in U.S. crude oil prices, driven by worries about a potential slowdown in oil demand in China and the ongoing conflict in the Middle East, which shows no signs of easing.

News for 22 October 2024

Gold Fluctuates Before Declining

On October 21, gold prices declined, closing at $2,719/oz. The main reason for this drop was the strengthening of the dollar index, which rose from 103.46 to 103.96, exerting downward pressure on gold prices.

On October 22 at 21:00, the Richmond Fed manufacturing index will be announced, with a forecast of -19. At the same time, there will be a statement from Patrick Harker, a member of the Federal Reserve, which could provide important insights into economic direction.

If the dollar index successfully breaks the resistance level around 103.80, it may signal a clear upward trend.

U.S. Bond Yields Surge, Impacting Investments and Dividend Payments

The surge in the yield of 10-year U.S. Treasury bonds, a key benchmark for pricing debt securities globally, including mortgage interest rates in the U.S., has led consumers to face increased costs for mortgage payments. Simultaneously, the higher debt servicing costs are affecting companies, potentially forcing them to reduce investments and dividend payments to shareholders.

WTI Crude Oil Prices Surge by 1.94%

WTI crude oil futures for November delivery rose by $1.34, or 1.94%, closing at $70.56 per barrel. This increase was driven by heightened tensions in the Middle East, with expectations that Israel may take military action against Iran, potentially impacting oil supply in the region and putting upward pressure on oil prices.

News for 24 October 2024

Gold Prices Decline

On October 23, gold prices fell, closing at $2,715 per ounce. This decline was primarily driven by profit-taking activities and a strengthening U.S. dollar, which rose from 104.09 to 104.42, putting downward pressure on gold prices.

On October 24 at 7:30 PM, Investors should keep an eye on the announcement of weekly jobless claims in the U.S., which is expected to be around 243,000 claims. Additionally, the manufacturing and services indices will be released at 8:45 PM, with forecasts of 47.5 and 55.0, respectively.

While gold prices have weakened in the short term, the ongoing crisis in the Middle East, particularly the potential for Israel to attack Iran, may support a future increase in gold prices.

U.S. 10-Year Treasury Yields Reach 3-Month High

The yield on the U.S. 10-year Treasury bond surged to 4.255%, marking its highest level in three months since July 26. This increase in yields is primarily attributed to statements from several Federal Reserve officials, including Mary Daly, president of the San Francisco Fed, Lorie Logan, president of the Dallas Fed, and Neel Kashkari, president of the Minneapolis Fed. They advocated for a cautious approach to monetary policy, suggesting gradual interest rate reductions, which reflects a desire for balanced changes in financial conditions.

McDonald’s Shares Drop 5.12% Amid E. Coli Outbreak Reports

McDonald’s stock fell by 5.12% after the Centers for Disease Control and Prevention (CDC) reported an outbreak of E. coli bacteria linked to the restaurant’s Quarter Pounder burger. The outbreak has resulted in 10 hospitalizations and one death, with one patient suffering from hemolytic uremic syndrome, a severe condition that can lead to kidney failure. This situation has raised consumer safety concerns and impacted brand confidence.

Tesla Reports Stronger-Than-Expected Q3 2024 Earnings, Stock Jumps 12%

Tesla announced its Q3 2024 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.72, compared to the $0.58 anticipated by analysts from LSEG.

While revenue reached $25.18 billion—slightly below the estimated $25.37 billion—it represented an 8% growth from the previous quarter (QoQ), leading to a 12% surge in Tesla’s stock price ahead of market opening.

Net income increased to $2.17 billion, or $0.62 per share, up from $1.85 billion, or $0.53 per share, last year, boosting investor confidence and contributing to the stock’s rise.

News for 25 October 2024

Gold Prices Rebound Slightly

On October 24, gold prices rebounded, closing at $2,736/oz, supported by a decline in the yield on 10-year U.S. Treasury bonds (US10Y) and a drop in the dollar index from 104.42 to 104.02, which helped bolster gold prices.

On October 25, at 7:30 PM, investors should pay attention to the announcement of U.S. durable goods orders, which are expected to decline by -1.1%.

Additionally, the outlook for gold prices remains positive due to ongoing tensions in the Middle East, particularly regarding Israel’s potential military response to Iran, which could further increase gold’s appeal as a safe-haven asset.

Tesla Stock Surges 21.9%, Market Cap Rises by $140 Billion

Tesla’s stock soared by 21.9%, resulting in an increase of over $140 billion in the company’s market capitalization after the company reported significantly better-than-expected earnings for the third quarter of 2024. Additionally, Tesla surprised investors with its forecast for next year’s sales, predicting growth between 20% and 30%. This information bolstered confidence in the company’s future and led to a rapid increase in its stock price.

Boeing and IBM Stocks Pressure Dow Jones Index into Negative Territory

Boeing’s stock fell by 1.18%, and IBM’s stock dropped by 6.17%, causing the Dow Jones index to close in the red. The primary reason for Boeing’s decline was the vote by its mechanics opposing a new agreement that proposed a 35% salary increase over four years, along with an extension of the strike.

Meanwhile, IBM’s significant drop followed the company’s disclosure of lower-than-expected earnings, severely impacting investor confidence in both companies’ stocks.

WTI Crude Oil Contracts Close Down 0.82%

WTI crude oil contracts for December delivery fell by 58 cents, or 0.82%, closing at $70.19 per barrel. This decline came after reports that the U.S. and Israel are pushing for ceasefire negotiations in Gaza. This development raises concerns about regional tensions and its potential impact on global oil supply.