Following Wall Street: Asian markets are also down

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

8:10

Trading in Asia is going down against the backdrop of the red trend on Wall Street last night. The Nasdaq fell 1.6% and the Dow Jones and S&P 500 lost about a percent. It was the third straight day of declines for the S&P 500 and the Dow Jones, which also closed its worst day since early September.

The yield on the 10-year government bond rose to about 4.24%. During today’s trading, the yield reached 4.26%, its highest level since July 26. Strong economic data and concerns about the US deficit are among the reasons for the increase in bond yields, despite the interest rate cut by the Fed in September. In addition, the market is concerned that the rate cut schedule will be slower than the Fed’s estimates, which expected it to make another 0.5% cut by the end of the year.

The electric car manufacturer Tesla reported last night a surprising increase in net profit in the first quarter, for the first time since the company’s profits began to decline earlier this year. Net profit jumped 17% to about $2.17 billion (earnings per share of 72 cents). Analysts’ forecasts were for earnings per share of 58 cents. However, Tesla missed on revenue, which rose 8% to $25.18 billion, while analysts’ forecasts were for $25.37 billion.

Other stocks that stood out in yesterday’s trading are ARM, which fell by 6.7%, and McDonald’s, which lost 5%. ARM stock fell after a Bloomberg report that the British chip company plans to cancel its license agreement with Qualcomm. Whereas McDonald’s fell after the US Centers for Disease Control and Prevention (CDC) announced an outbreak of E. coli linked to the fast food giant’s food in 10 different states across the US. The outbreak has so far led to 10 hospitalizations and one death.

The Israeli Gauzi share jumped by 9.8%. This after it was chosen to supply smart glass for Ferrari’s SUV. Gauzi, under the management of co-founder Eyal Peso, has developed technology that allows control of the passage of light through glass (“smart glass”), while at the same time it is also developing driver assistance systems (ADAS) for commercial vehicle drivers.

In terms of macro events, today (Thursday) afternoon the unemployment figure for the past week, the Purchasing Managers’ Index and new home sales data will be published in the US.

Next week, the most prominent macro data to be published is the job vacancies report (JOLTS) in the US and later the GDP for the third quarter of the year. Also in the US, the Core PCE index will be published, which examines the expenditure for private consumption minus food and energy, and is considered a key index regarding inflation. The GDP in Germany, France, Italy and Spain will also be published – as well as in the entire Eurozone, where the consumer price index for October and the unemployment rate will also be published for September In Germany, the unemployment rate and the consumer price index will also be published.