This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- US Q3 GDP grew at an annualized rate of 3.4%, surpassing economist estimates of 3.2% and marking a significant acceleration from the previous quarter's 2.2%.
- Inflationary pressures showed signs of cooling as the GDP Price Index fell to 2.3% (vs. 3.2% expected), while the annual PCE Price Index moderated to 3.1%.
- Mastercard (MA) reported strong Q3 results, with adjusted EPS of $5.31 and revenue of $9.8 billion both beating Wall Street expectations.
- The US labor market remains tight as initial jobless claims held steady at 194,000, coming in lower than the 198,000 forecast by analysts.
- China Vanke reported a narrowed Q3 net loss of ¥8.99 billion, showing improvement from the ¥16.1 billion loss recorded in the same period last year.
The US economy demonstrated robust health in the third quarter of 2026, according to advance estimates. Real GDP increased at an annual rate of 3.4%, driven largely by personal consumption growth of 3.8%. This performance suggests the economy remains resilient despite high interest rates, comfortably beating the 3.2% consensus estimate.
Inflation data released alongside the GDP report provided a mixed but generally cooling outlook. The Core PCE Price Index for September rose 0.3% month-over-month, bringing the annual rate to 3.1%. While the annual figure is down from 3.4% previously, it remains slightly above the Federal Reserve's long-term targets, though the GDP Price Index slowed sharply to 2.3%.
In the corporate sector, Mastercard (MA) shares are in focus after the payments giant delivered a beat on both top and bottom lines. The company posted net revenue of $9.8 billion, up from estimates of $9.67 billion, supported by an 11% increase in cross-border transaction volumes. This suggests that global consumer spending and travel demand remain durable.
The labor market continues to show strength, with initial jobless claims for the week ending October 24 coming in at 194,000. This was lower than the anticipated 198,000, while continuing claims dropped to 1.701 million, indicating that displaced workers are finding new employment relatively quickly.
In international developments, the Chinese property sector remains under pressure, though China Vanke (000002) showed signs of stabilizing losses. The developer reported a Q3 net loss of ¥8.99 billion, a significant reduction from the ¥16.1 billion loss a year ago. However, the company still faces liquidity challenges with a 9-month net cash loss from operating activities of ¥2.22 billion.
Elsewhere in Europe, political shifts are underway as German Chancellor Merz announced that the process to find a successor for ECB President Christine Lagarde is expected to be completed by year-end. Meanwhile, the Swiss government has reportedly conducted assessments on how UBS (UBS) would operate under different legal jurisdictions should the bank decide to relocate its headquarters.
In the commodities market, spot silver prices saw a sharp decline of 3%, falling to $52.40 per ounce. This move comes amidst a strengthening US dollar following the better-than-expected GDP data, which may influence the Federal Reserve's upcoming interest rate decisions.
Automated market updates written with AI from market data and news wire reports, published without human review.