Earnings Season in Full Swing

31 October 2022, 04:51

Q3 earnings are being released right now, with disappointing data from tech stocks. Meta plunged nearly 20% on a weakened Q4 forecast and an earnings miss of $1.64 vs $1.89 expected per share. Alphabet, Google’s parent company, missed expectations by over 15%, hitting an EPS of $1.06 vs $1.25 expected.  Amazon, meanwhile, lost 13% on underperforming earnings. For next week: look out for numbers from Pfizer Inc. (1/11), AMD (1/11), Qualcomm (2/11), Toyota (3/11), and  Paypal (3/11), and Berkshire Hathaway (4/11).

Crypto Volatility at a Low

Cryptocurrencies, once defined by their fickle movements, have seen a surprising period of calm in recent days. For the past month, the peak-to-through spread across the top 10 coins have been just over a third of the average since the start of 2020. This is the quietest the crypto market has been since 2017, with volatility indices also printing lows. Once moving in tandem with growth stocks and the wider equity markets, crypto has also moved away from this correlation. Gemini co-founder Cameron Winklevoss, for example, tweeted “Bitcoin has been remarkably resilient the past few weeks despite the stock market losing trillions in value. No idea if this is the bottom but there’s been a curious decoupling.”

ECB to Continue with Quantitative Easing Until 2024

The European Central Bank has vowed that it will continue printing money even as inflation continues to rampage the EU. While the ECB has raised interest rates by an outsized 75 basis points at its most recent monetary policy decision, the central bank will also be continuing with its bond-buying programme, causing the euro to drop below dollar parity again this year. Inflation for the EU is at 9.9% for September, almost 5 times the ECB’s target rate. The ECB’s 8.8 trillion euro (US$8.75 trillion) will also see little shrinkage, as announced by the central bank.