Market Snapshot
▼ S&P 500 -0.84%
▼ SPUS -0.19%
▲ MSCI World Islamic +0.65%
*Stock data reflects the last full week ending on Friday.
Last Week’s Review
Bank of Canada Interest Rate Cut: The Bank of Canada lowered its benchmark interest rate by 0.50% to 3.75% on October 23, 2024—the largest cut since March 2009 outside of the COVID-19 era—aimed at boosting economic growth after inflation slowed to 1.6%, offering relief to borrowers with variable rate loans.
Existing Home Sales: US Existing home sales dropped 1.0% in September to an annualized rate of 3.84 million units, a 14-year low, as high mortgage rates continued to weigh on the housing market. This highlights affordability challenges and reduced buyer activity, with potential impacts on the broader
economy.
Flash PMI Data: Preliminary October PMI data indicated a slight contraction in U.S. manufacturing and a slower expansion in services, suggesting potential cooling in economic activity. This PMI data is closely watched as it provides early indicators of Q4 economic health and may influence upcoming monetary policy decisions.]
This Week’s Outlook
Major Tech Company Earnings Reports: Amazon, Apple, and Google are set to report earnings this week, with their results expected to significantly influence market sentiment by providing insights into the tech sector’s performance amid economic uncertainties.
European Central Bank (ECB) Rate Decision: The ECB will announce its latest interest rate decision this week, with expectations that rates may remain unchanged as policymakers balance persistent inflation against slowing economic growth.
U.S. Consumer Confidence Index: The latest Consumer Confidence Index will be released, with expectations for a slight decrease due to inflationary pressures and rising interest rates. This index is a key indicator of consumer spending potential, especially during the high-spending holiday season.
Curated Reads
Earnings and Election May Lead to a Volatile Week: With earnings reports from major tech companies and election volatility on the horizon, the stock market is in for a potentially turbulent week. Updates from industry leaders like Amazon, Apple, and Google could steer market sentiment amid broader economic and political uncertainties. [Read]
Note: Amazon, Apple, and Google all pass AAOIFI compliance standards, according to data from Muslim Xchange.
China’s Industrial Profits Plunge 27.1%: China’s industrial profits fell 27.1% year-on-year in September, marking the sharpest drop since the pandemic, due to weak demand and a property crisis. The decline underscores the need for China’s authorities to strengthen economic stimulus efforts, especially as key sectors like upstream materials and automobiles face heavy stress. [Read]
U.S. GDP Growth Estimate Revised: The Atlanta Fed recently revised its Q3 U.S. GDP growth estimate down to 3.3% from 3.4%, driven by weaker-than-expected data on private investment and housing market activity. This revision highlights the economy’s mixed signals, as growth remains robust but shows signs of slowing in key areas. Investors are closely watching these indicators to assess the likelihood of a more prolonged economic cooldown, which could influence future Federal Reserve policy. [Read]
Chart of the Week
This section is dedicated to showcasing interesting charts—ranging from individual stock outlooks to economic data. Sometimes, we’ll highlight individual stocks with potential for either long- or short-term gains; other times, we may explore broader economic indicators to provide context on market trends. Each chart is chosen to offer valuable insights, though we encourage readers to conduct their own research before making any investment decisions based on this information. Our focus will remain on delivering high-quality, data-driven perspectives.
Your Questions
Why are Visa (V) and Mastercard (MA) Not Compliant on Muslim Xchange?
There is a difference of opinion on this. Our shariah advisory partner, Raqaba, is of the view that they are not permissible because they mainly serve the credit card business, which is riba-based, and I tend to agree with this view. Others have said they only process payments and hence have allowed it. Allah knows best. (Answered by Faraz Omar, AAOIFI Certified Shariah Advisor and Auditor)
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