October Financial Markets: Reports, Trade & Precious Metals
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October 2024 Global Stock Market Review: Trade Truce, Earnings & The Mag7
Table of Contents
What Happened in October 2024?
Global stock markets maintained their optimistic dynamics in October, marking the sixth consecutive month of rally. Market sentiment was bolstered by a solid start to the Q3 US corporate reporting season, a new US-China trade deal, and the Federal Reserve’s (FRS) second rate cut this year, which saw the rate target range narrow to 3.75-4.00%. Though, Jerome Powell cautioned that further monetary easing is not set in stone.
Despite continued market euphoria, gains were still concentrated in a few sectors and high market cap technology companies. The “Magnificent 7” (Mag7) companies now account for a record 37% of the S&P 500’s total market capitalization, highlighting a potential concentration risk.
Key Market Performance
- S&P 500: Continued its rally, driven by strong earnings reports.
- STOXX 600: Gained approximately 2.5% for the month, benefiting from European earnings and a stable interest rate environment.
- Bitcoin (BTC/USD): Rose to $125,000 but experienced a 4.3% monthly decline. Bitcoin Exchange Traded Funds increased their holdings by $3.5 billion, increasing institutional ownership to 12% of total cryptocurrency holdings.
The US-China Trade Truce
On October 30, US President Trump and Chinese President Xi concluded a trade truce.China agreed to lift export controls on rare earth elements for a year and committed to purchase 12 million tons of US soybeans in 2025, increasing to 25 million tons annually over the next three years, restoring demand to pre-trade war levels.
Despite the news, the most active CBOT soybean futures contract fell 1.3% on the day, as the market reacted to the lack of concrete details on the deal. China, controlling