Trump-Xi Meeting and Corporate Earnings in Focus on Thursday
Thursday's market preview is filled with significant corporate earnings and geopolitical developments. Vistry Group, a UK-based housebuilder, will release its half-year results, while DFS and CVS will report their full-year numbers in the UK. In contrast, H&M will reveal its third-quarter results from Europe.
In the US, Costco will announce its quarterly earnings, with analysts expecting to see whether the company has absorbed elevated transportation and fuel costs without hurting margins or its customer value proposition. Membership fees are a key aspect of Costco's profit machine, and maintaining historically high renewal rates is crucial for its future prospects.
US President Donald Trump and Chinese President Xi Jinping will meet at the White House to discuss various topics, including trade, AI, and rare earths. Saxo Markets UK strategist Neil Wilson noted that there will be a focus on AI, given recent warnings of an 'apocalypse'. The meeting comes ahead of the November expiry of a trade truce between the US and China.
Macro releases include the German Ifo index for September, US initial jobless claims, and new home sales data. The Swiss National Bank will also make its latest policy announcement, with analysts expecting to keep rates unchanged at 0%. However, some expect the SNB to start sounding more hawkish in preparation for a potential rate hike next year.