Equity markets concluded Q3 on a high note, setting new records, accompanied by a remarkable recovery in Chinese stocks following the announcement of a significant stimulus package.

The global analyst team at eToro has provided an insightful market overview for this week, encapsulating the latest data on market trends alongside the investment outlook as perceived by the house. This overview sheds light on the dynamics of various asset classes and offers predictions towards future market movements, thus serving as a vital guide for investors looking to navigate the ever-evolving financial landscape.

The closing of the third quarter showed global assets, categorized as risky, experiencing a swell, ending Q3 on a high note. The quarter’s US GDP growth has been officially pegged at 3.0%. Moreover, a softened inflation metric for August, as revealed by the Personal Consumption Expenditure (PCE) inflation data, sitting at 2.2%, aligns with the Federal Reserve’s vision of achieving the “Goldilocks” state in the economy. Bolstered by these positive indicators, major indexes like the S&P 500 and Dow Jones saw upticks of 0.6%, with the Nasdaq climbing by 1.1%. Across the pond, the European STOXX enjoyed a 2.7% rise, and Japan’s Nikkei Index appreciated by a remarkable 5.6%. However, stealing the spotlight was Hong Kong’s Hang Seng Index, which soared by 13% marking its most significant weekly gain in over a decade and a half, signaling a notable shift towards markets that had previously trailed behind the US.

Reflecting on the annual performance thus far, indices and assets reveal robust gains – S&P 500 at 20%, Nasdaq at 19%, Hang Seng at 21%, along with gold soaring at 28%, and Bitcoin astonishingly at 54%. With the historical performance of Q4 often being positive, there remains a strong sense of optimism for gains as we venture deeper into 2024.

Attention also turns towards China, as it unveiled a substantial $284 billion economic stimulus package aimed at revitalizing its slowing economic engine and providing a cushion to its real estate market. The People’s Bank of China (PBoC) has taken steps including interest rate reductions, loosening reserve requirements for banks, and introducing measures to alleviate mortgage costs, potentially benefiting up to 50 million households. The stimulus package also extends into policies designed to invigorate the stock market and plans for issuing 2 trillion yuan in bonds to back local governments and boost consumer spending.

As we step into October, the focus transitions from a macroeconomic to a microeconomic view, with JP Morgan set to unofficially commence the new earnings season on October 11, continuing through mid-November with NVIDIA’s report. Although expectations for Q3’s revenue and earnings growth remain modest, forecasts for upcoming quarters are more optimistic. In addition, events like the tension-filled US presidential election on November 5, along with the high-profile BRICS Summit in Russia starting October 22, are poised to draw considerable attention. For those seeking a thorough analysis, our Q4 Investment Outlook video, slated for release on October 7, promises to offer deep insights.

The pulse of the US labor market in September is eagerly anticipated by the investment community, with the Federal Reserve keen on preventing further deceleration, aiming for a soft landing. Market volatility may spike if the upcoming job data, expected to reveal an increase of 145,000 new roles, indicates a weakening labor market. Concurrently, the property sector still languishes for a boom despite interest rate cuts, as shown by the divergence with the S&P 500 since late 2023.

A series of earnings announcements are on the horizon from major players like Nike, Carnival Cruise Lines, Levi Strauss, and Constellation Brands. The spotlight not only focuses on Chinese companies, benefiting from the recent economic stimulus, but also on luxury goods manufacturers and tech giants with substantial exposure to the Chinese market. The upcoming week also teems with notable events including Amazon Prime Big Deal Days, TSMC monthly sales data, a significant Tesla unveiling, and JP Morgan’s Q3 earnings revelation, together marking the start of a new earnings season.

As the financial landscape continues to evolve, staying updated with the latest news becomes paramount for making informed decisions. For those inclined towards the dynamically changing DeFi sector, DeFi Daily News offers a plethora of trending news articles that cater to interests in decentralized finance and beyond.

In conclusion, as we navigate through these turbulent but exciting times in the financial markets, the road ahead appears filled with both challenges and opportunities. With comprehensive market overviews such as the one provided by eToro’s adept global analyst team, investors are better positioned to make calculated moves. It’s essential to keep our fingers on the pulse of the market, anticipating shifts and adapting strategies accordingly. And amidst the serious world of numbers and predictions, let’s not forget the humor that often accompanies the unpredictability of financial markets. After all, in the grand tapestry of global finance, a dash of entertainment makes the journey all the more enjoyable. May the remainder of 2024 be a testament to strategic foresight, robust returns, and perhaps a few unexpected laughs along the way.