AHR Weekly Market Update - Monday 4th November

AHR Weekly Market Update Podcast

Welcome to this week’s AHR market review for the week ending 3rd November 2024.

In what began as a relatively subdued week for markets, Thursday saw a jolt of volatility, with stocks taking a tumble as fresh worries over the growth potential of technology shares and artificial intelligence rattled investors.

The third-quarter earnings season for S&P 500 companies is now in full swing, and results have so far delivered modestly positive surprises.

In the latest snapshot of the US labour market, October’s nonfarm payroll report disappointed significantly, with just 12,000 jobs added versus an expected 100,000.

Over in Europe, the eurozone economy notched up a 0.4% expansion in the third quarter—double the growth rate seen in Q2 and ahead of the 0.2% consensus forecast.

Eurozone inflation provided another key talking point. Headline inflation ticked up to 2% year-on-year in October, a slight acceleration from 1.7% in September, due in part to last year’s energy price declines dropping out of the comparison.

In the UK, Chancellor of the Exchequer Rachel Reeves unveiled the first Labour budget in 14 years, earmarking an additional £70 billion in spending over the next five years, funded through £40 billion in tax increases and £32 billion in further borrowing.

US equities shed over 1% for the week, reflecting concerns over tech sector valuations and rising bond yields.

Looking to the week ahead, markets will be bracing for several pivotal events likely to drive sentiment.

That’s all for this week’s AHR Weekly Podcast. Thank you for listening and for further investment insights head over to ahrprivatewealth.com.