Here we go. Corporate results have been added to the ‘Fed rate changes’ and ‘trade war’ variables in the stock market equation. In the United States, to exaggerate slightly, we could say that the first wave of quarterly results is a zero-sum game: the figures from Wells Fargo, Citigroup and BlackRock were warmly welcomed, unlike those from JPMorgan Chase and Goldman Sachs. In Europe, investors regained their enthusiasm for Ericsson (+17%), but they heavily penalised Michelin's warning (-9%). After the close, LVMH published figures that were not particularly dynamic but offered hope, and were well received, with the American OTC listing jumping 8.8%. Please note: this tip for gauging the market's reaction to post-close European announcements works with all stocks that have good liquidity in the United States, both on the open market and via ADRs.

Today, financials will once again take centre stage on Wall Street with Bank of America, Morgan Stanley, Progressive Corporation (insurance) and ProLogis (real estate). Abbott Laboratories and United Airlines will add a little diversity. In Europe, semiconductor manufacturing equipment star ASML will capture most of the limelight.

Yesterday, the general trend was rather bearish, although the Dow Jones managed to close up 0.4% thanks to support from its old guard, Walmart and Caterpillar (+4%), which more than offset the hangover from Nvidia (-4.4%) and Salesforce (-3.6%). The Nasdaq 100 lost 0.7%. Shortly before, Europe had ended down 0.4% for the Stoxx Europe 600, penalised by poor sales at Michelin, the decline in the oil sector with the fall in barrel prices and the contraction in cyclical stocks. The underlying sluggishness of Western markets is fuelled by the escalation of trade tensions between the United States and China. Investors may well claim that this is tactical and that everything will end in some kind of compromise, but they are concerned about Beijing's pugnacity. After the ‘you'll only get my chips if you sell me your rare earths’ exchange, last night we were treated to ‘you don't buy my soya anymore, I won't buy your cooking oil anymore’. OK, so it's a bit of an exaggeration, because the underlying dynamics between the United States and China are extremely powerful. But the standoff has resumed, giving financiers an excuse to temporarily abandon their beloved FOMO, or fear of missing out, even if the rise becomes unreasonable. Nvidia shares, a symbol of the craze for AI, have fallen 8% since their high at the start of trading last Friday. 8% of Nvidia is $350 billion.

In the end, it was fortunate that Jerome Powell spoke yesterday. In a speech delivered after the European markets closed but during the US trading session, the Fed chairman confirmed that the labour market is showing signs of weakness in the United States. This comment cemented Wall Street's forecast of two 25-basis-point rate cuts by the end of the year. Powell also hinted that the central bank could stop reducing its balance sheet in the coming months. Translation: priority will be given to liquidity and economic support. This was enough to satisfy investors once again. With a less empathetic Fed chairman, the trading session could have ended badly given the state of technology stocks.

On the macroeconomic front, the day will be marked by numerous other speeches by US central bankers. But given yesterday's speech by the Fed chairman, we can imagine that the impact of his colleagues will be less significant today. Unless, of course, someone starts talking about a more significant rate cut. In China, deflation is slowing but still present. Producer and consumer prices are down year-on-year. This situation, combined with the trade conflict with the United States, is reviving talk of a massive stimulus package, a classic autumn theme that investors have revisited almost every year for the past five years.

In the Asia-Pacific markets, the rebound that did not materialise yesterday seems to be taking hold this morning. Japan is up 1.9% after a difficult Monday due to a domestic political situation that is much less fluid than expected. Mainland China and Hong Kong are also up. Gains are reaching 1% in Australia and Taiwan and 0.5% in India. South Korea, with a 2.6% jump, is leading the way this morning, focusing more on the prospect of rate cuts in the United States than on the correction in technology stocks and trade tensions. The yo-yo effect is also set to return in Europe at the opening.

Today's economic highlights:

On today's agenda: France's harmonized CPI and Switzerland's CPI; Japan and the eurozone's industrial production; in the United States, the CPI and the Empire Manufacturing index. See the full calendar here.

  • GBP / USD: US$1.34
  • Gold: US$4,190.48
  • Crude Oil (BRENT): US$62.2
  • United States 10 years: 4.01%
  • BITCOIN: US$112,339

In corporate news:

  • Unilever sold the Kate Somerville brand to Rare Beauty Brands.
  • WPP and Google have broadened their collaboration to enhance advertising and marketing solutions.
  • AstraZeneca doubled the production of Lokelma by expanding its manufacturing facility in Texas.
  • Empire Metals disclosed a maiden mineral resource estimate for its Pitfield project in Australia, highlighting a significant and high-grade titanium resource.
  • ASML Holding reported strong Q3 orders and sales for chip-making equipment, with bookings and net income exceeding expectations, but anticipates a significant drop in demand from China by 2026.
  • Stellantis is relocating production from Canada to the US, investing $13 billion to expand production by over 50% and create 5,000 new jobs, in response to auto tariffs.
  • Salzgitter AG is launching a EUR 500 million convertible bond offering to raise funds and decrease its ownership in Aurubis AG.
  • Havas upgraded its full-year outlook following a Q3 revenue report of EUR 681 million and an organic growth of 3.8%.
  • Mowi ASA Q3 2025 results reveal an operational EBIT of EUR 112 million, with a slight increase in salmon volume, aligning with expectations.
  • OpenAI is expanding its business with plans to meet $1 trillion spending pledges through new revenue streams and fundraising.
  • JPMorgan and Citigroup exceeded earnings expectations, while Goldman Sachs reported record revenue despite higher costs.
  • EyePoint Pharmaceuticals launched a public offering of 11 million shares at $12.00 each to raise $150 million for Phase 3 development of its Duravu product.
  • Wells Fargo CFO reported a decrease in delinquencies, while the CEO announced ambitious goals for the bank.
  • Dentsply Sirona Inc. saw its shares rise after the SEC concluded its investigation without taking enforcement action.

See more news from UK listed companies here

Analyst Recommendations:

  • Marks & Spencer Group Plc: Baptista Research upgrades to hold from underperform with a target price of GBP 4.40.
  • Pearson Plc: Baptista Research upgrades to outperform from underperform with a price target raised from GBP 11.90 to GBP 12.20.
  • Integrafin Holdings Plc: Shore Capital maintains its buy recommendation and raises the target price from GBX 415 to GBX 440.
  • Experian Plc: Rothschild & Co Redburn maintains its buy recommendation and reduces the target price from GBX 4539 to GBX 4435.
  • Mitie Group Plc: Berenberg maintains its buy recommendation and raises the target price from GBX 175 to GBX 185.
  • Ibstock Plc: Berenberg maintains its hold recommendation and reduces the target price from GBX 170 to GBX 150.
  • Firstgroup Plc: RBC Capital maintains its outperform recommendation and raises the target price from GBX 220 to GBX 235.
  • Legal & General Plc: Peel Hunt initiates an Add recommendation with a target price of GBX 255.
  • Aston Martin Lagonda Global Holdings Plc: Barclays maintains its overweight recommendation and reduces the target price from GBP 1 to GBP 0.75.
  • Flutter Entertainment Plc: Bernstein maintains its market perform recommendation and reduces the target price from USD 340 to USD 330.
  • Victrex Plc: Morgan Stanley maintains its overweight recommendation and reduces the target price from GBX 1100 to GBX 940.
  • Lloyds Banking Group Plc: Jefferies maintains its buy recommendation and raises the target price from GBX 103 to GBX 105.
  • Bellway P.l.c.: RBC Capital maintains its sector perform recommendation and raises the target price from GBX 3150 to GBX 3300.
  • Melrose Industries Plc: Morgan Stanley maintains its equalwt recommendation and raises the target price from GBX 470 to GBX 610.