Beyond Meat Has Become The Latest Meme Stock

Beyond Meat dropped over 10% in after-hours trading after a volatile week that saw its shares soar more than 1,400%! Tesla stock fell after hours following weaker-than-expected quarterly profit despite record revenue. Netflix extended Wednesday’s 10% decline as investors remained unimpressed by its outlook. Brent crude rose after the US imposed sanctions on Russian oil producers Lukoil and Rosneft.

Equities

The FTSE 100 rose 1% on Wednesday, marking its third consecutive day of gains as lower-than-expected inflation data fuelled bets on interest rate cuts from the Bank of England. The FTSE 250 climbed 1.4%. Inflation for September held steady at 3.8%, below the Bank’s 4% forecast, leading traders to price in a roughly 75% chance of a rate cut to 3.75% at the central bank’s December meeting.

Among individual stocks, Barclays gained 5% after announcing a £500 million share buyback and lifting its profitability target for the year, helping lift the banking index 1.5%. Oil majors BP and Shell added 1.8% and 1.7% respectively, supported by firmer crude prices.

Mining giant Rio Tinto rose 2.1% after reports that it was considering an asset-for-equity swap with Chinalco to reduce the Chinese investor’s 11% stake, a move that could allow the miner to restart share buybacks and pursue new deals.

In contrast, ITV fell 7.8% after its largest shareholder, Liberty Global, cut its stake in the broadcaster to 5% from 10%, making it the worst performer in the FTSE 250.

Across the Atlantic, Wall Street ended lower on Wednesday as mixed corporate earnings and renewed us–China trade tensions weighed on sentiment.

The Dow Jones Industrial Average fell 0.71%, the S&P 500 lost 0.53%, and the Nasdaq Composite slipped 0.93%. The declines came after reports that the Trump administration was considering restrictions on exports to China involving products made with US software, including laptops and jet engines.

Netflix shares dropped 10.1% after the streaming company missed quarterly profit forecasts, prompting questions about its valuation. Texas Instruments slid 5.6% after issuing weaker-than-expected fourth-quarter guidance.

Tesla reported better-than-expected quarterly revenue, with sales boosted by a US tax credit expiry, though its shares edged 0.5% lower in after-hours trading. Intuitive Surgical jumped 13.9% after a strong earnings beat, while AT&T fell 1.9% despite adding more wireless subscribers than anticipated.

Forex & Commodities

The dollar edged higher early as investors awaited Friday’s delayed US consumer inflation figures.

The US dollar index rose to 99.04, with the greenback trading at ¥152.37 after touching ¥152.57, its highest since mid-October. The yen weakened as markets looked for details of a major stimulus package from Japan’s new prime minister, Sanae Takaichi, expected to exceed last year’s $92 billion.

Sterling eased to $1.3340 after September inflation held at 3.8%, below Bank of England forecasts, while the euro edged lower to $1.1599.

Markets are pricing in a near 97% chance of a Federal Reserve rate cut next week, with another expected by December, while the Bank of Japan is seen holding policy steady until later in the year.

Gold prices rose this morning as geopolitical tensions supported demand for the metal. Spot gold was up at $4,123 per ounce as of 06:27 GMT after the US imposed new sanctions on Russian oil firms Lukoil and Rosneft and signalled plans to curb software-powered exports to China.

Silver rose to $49.10 per ounce, while platinum and palladium slipped to $1,603 and $1,445 respectively.

Oil extended gains in early trading, boosted by the sanctions against Russian suppliers and reports that Indian refiners are reviewing their Russian crude purchases.

Brent crude climbed to $64.71 a barrel, while West Texas Intermediate rose to $60.59. The US said further action could follow if Moscow fails to agree to a ceasefire in Ukraine, as analysts assessed the potential impact on supply from one of the world’s largest oil exporters.