CHENNAI: European and US markets are expected to show contrasting trends on Thursday (Oct 9), with European indices likely to remain cautious while Wall Street could see selective gains led by technology stocks.
In Europe, equity markets are expected to trade in a narrow range with a slightly negative bias. Banking shares came under pressure after HSBC’s plan to privatize its Hong Kong arm weighed on the financial sector, pulling down the broader STOXX 600 index.
Political uncertainty in France and weak industrial output and export data from Germany are also likely to keep investors on edge. However, commodity-linked sectors such as metals and resources may see some support from firm global prices. Overall, analysts expect European markets to stay subdued, with limited upside amid economic and policy uncertainty.
In the US, sentiment remains relatively upbeat as major indices such as the Nasdaq and S&P 500 continue to hover near record highs. Strong performance in technology and semiconductor stocks is likely to sustain buying interest, supported by optimism around artificial intelligence and upcoming corporate earnings.
However, caution persists after the Federal Reserve’s latest meeting minutes revealed differing views among policymakers on the timing of interest rate cuts. Some market strategists, including JPMorgan CEO Jamie Dimon, have warned that US equities could face a short-term correction due to elevated valuations.
Financial media in the west expect European markets to trade flat to lower, pressured by weakness in financials and economic data, while US markets could open higher with support from technology shares. Yet, both regions remain sensitive to monetary policy signals and global growth concerns, keeping overall sentiment balanced but cautious.
