Wall Street and Europe End Flat – Top Companies Miss Expectations

Markets around the world where flat. Investor and traders where digesting news from China where industrial production, retail sales and fixed-asset investment increased in September. Which means that, Chinese government can take their time to see what direction the economy take from here, regardless of GDP annual rate of growth, which was 7.4% in the third quarter, down from 7.6% in the previous three months.

China’s stock markets reacted to the news by rising to a five-week high on Thursday. The Shanghai Composite Index jumped 1.2 percent to 2,131.69. The worst may be over but the slowdown continues for the Chinese economy.

In the USA jobless claims climbed to 388 000; 23 000 more than analyst expected. The release changed the mood of the markets early on and when Google released its 3Q earnings, Wall Street went down by 35 points.

After hours, Microsoft released its quarterly earnings which have missed analysts expectations. Revenue fell to $16.01 billion from $17.37 billion a year ago. Along with Microsoft, Restaurant chain Chipotle reported after hours. The company declared that revenue rose to $700.5 million from $591.9 million a year ago. Analysts expected $702.9 million. It is expected that for tomorrow both companies shares prices will be lower.

Late reports from Europe are suggesting that EU leaders have agreed to have single supervisory body for the Euro zone banks by next year. Critics are skeptical, banking union might not work if there isn’t political integration. The crisis could continue if governments cannot guarantee to solve their financial crisis by themselves and or be able to manage their economy and impose lasting measures that promote sustainable grow.

After hours, markets are showing little change. Asian section will most probably follow suit and will have a quite section on Friday. No much economic data is due for this Friday section. The economic calendar has China MNI flash business sentiment Oct, Euro zone current account Aug and US Existing Home Sales which is expected an small increase.

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