China’s Economy Grew by 3.9 Percent in Q3 2022

U.S. stock futures rose Sunday evening after all three major averages notched their best week since June at Friday's close. At the time of writing, futures for the Dow Jones Industrial Average gained 257 points, or 0.83%. S&P 500 futures and Nasdaq Composite futures advanced by 0.8% and 0.59%, respectively. Earnings due this week will include Apple (AAPL), Microsoft (MSFT), ExxonMobil (XOM), Ford Motor (F), Credit Suisse (CS), Airbus (EADSY), Alphabet (GOOGL), Amazon (AMZN), Boeing (BA), Caterpillar (CAT), Coca-Cola (KO), HSBC (HSBA.L), Intel (INTC), McDonald’s (MCD), Daimler-Benz (DAI.DE), Merck (MRK), Samsung Electronics (005935.KS), Royal Dutch Shell (RDSA), UBS (UBS), UPS (UPS), Visa (V), Volkswagen (VOW.DE).

Today’s market vibes come after yet another volatile week for stocks as Q3 earnings is getting closer to its climax. On Friday, the Dow gained more than 748 points, or 2.47%. The S&P 500 and the Nasdaq Composite rose 2.37% and 2.31%, respectively. That added to gains from earlier in the week. The S&P 500 and Dow gained 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%.

So far, earnings reports have had mixed results for stocks. On Friday, bank stocks Goldman Sachs (GS) and JPMorgan Chase (JPM) gained more than 4% after them having reported their generally upbeat, but far from ensuring results. But not all reports have been solid. The latest fallout, Snap (SNAP), shed 28% after reporting an earnings miss.

European markets are trading mostly higher today. As of 2:00 p.m. CET, the Stoxx Europe 600 Index advanced. Media, travel&leisure and utilities rose, while energy underperformed. The British FTSE 100 is adding 0.52% while the French CAC 40 Index is rising 1.89%, and the German DAX gained 1.63%.

In terms of macro, the UK’s manufacturing PMI declined to 45.8 in October from 48.4 in September. The S&P Global Eurozone manufacturing PMI dropped to 46.6 in October from 48.4 in September, while services PMI fell to 48.2 from 48.8 over the same period. The S&P Global Composite PMI in Germany fell to 44.1 in October from 45.7 in the previous month, while French Composite PMI dropped to 50 in October from 51.2 in September. The gauge pared some of its early advance after disappointing data added to concern the euro area is heading for a recession. Prosus NV slumped more than 11%.

Meanwhile, on the political front, Britain could just be hours away from finding out who its next prime minister will be, after Boris Johnson's withdrawal from the race left former Chancellor Rishi Sunak as the clear frontrunner. The other contender, Penny Mordaunt, is still trying to pull together 100 nominations from members of Parliament before 2 p.m. in London. If she falls short, Sunak will clinch the premiership. Markets have reacted positively, with British gilts soaring and the pound holding gains.

Asian markets traded mixed earlier today, as indexes in China retreated following the events of current China’s leader Xi Jinping being confirmed to remain in Office for a third term. Meanwhile, according to official data, China's Q3 GDP grew by 3.9%. In Japan, the private sector recorded an advance in activity in October.

China’s yuan and the country’s stocks tumbled in Hong Kong to the lowest rates since the depths of the 2008 global financial crisis, even as economic growth data beat estimates. The onshore yuan depreciated as much as 0.4%, while the Hang Seng China Enterprises Index, a gauge of Chinese stocks listed in Hong Kong, plunged more than 5%.

The Japan’s Nikkei 225 added 0.31% at the close, while the Korea’s Kospi Composite improved by 1.04% simultaneously, and the Australia’s S&P/ASX 200 gained 1.54% concurrently. The Shanghai Composite lost 2.02%, the Shenzhen Composite dropped 2.05%, while the Hang Seng plummeted 6.36%, reaching its lowest level since 2009. On Fx front, the U.S. dollar is trading 0.91% higher against the yen, going for 149.0170 at 2:00 p.m. CET.