The US dollar

After losing ground last week, the USD is now up for a third day. On Tuesday, the greenback found support in a series of central banker comments that left the door open to further rate hikes. The focus now turns to a speech by Fed Chair Powell before the Federal Reserve Division of Research and Statistics Centennial Conference. Renewed dollar strength means that gold fell yesterday, as low as $1,957.

Marks & Spencer

Marks & Spencer posted a much better-than-expected 75% rise in first-half profit but cautioned the second half was unlikely to be as strong due to an uncertain economic outlook and challenging comparative numbers.

ITV

ITV posted a 1% increase in total revenue for the first nine months of the year. The group adds that lower demand from free-to-air broadcasters for its content will impact its studio business in the fourth quarter, resulting in growth of around 3% for the unit in 2023, down from its previous mid-single-digit forecast.

Adidas

Adidas inventory levels continued to decline in the third quarter, and lower costs helped increase its gross margin. Inventory levels were down 23% on the year to €4.85 billion. Adidas’ gross margin for the quarter was up 0.2 percentage points, to 49.3%, thanks to reduced freight costs and less discounting.

Bayer

Bayer announced this morning that it will remove several layers of management by the end of next year to speed up decision-making. It also reported third-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €1.68 billion, down 31.3% on falling earnings at its Crop Science division.

Munich Re

Munich Re posted a net profit of €1.17 billion. This equates to a 6% increase from the same quarter last year. Last month, the company had already reported preliminary figures, saying profit would be around €1.2 billion. For the full year, the German reinsurer sees net profit at €4.5 billion.

Commerzbank

Commerzbank’s net profit more than tripled in the third quarter. Net profit rose to €684 million, helped by higher interest rates, up from €195 million a year earlier. Analysts had an average expected profit of €611 million. Commerzbank spent much of the next three years on a major overhaul, slashing its workforce and branch network to restore profits. This morning, Commerzbank management said it will reduce its cost-to-income ratio to 55% by 2027 and aim for a net profit of around 3.4 billion euros in that year.

Credit Agricole

Credit Agricole posted better-than-expected quarterly results, driven by the strong performance of its investment bank and retail activities. Third-quarter net income jumped 33% from a year earlier to €1.75 billion, above the €1.37 billion average of analyst estimates compiled by the French bank.

eBay

eBay slid 5.4% last night in all sessions on the IG platform as it forecast Q4 below estimates. Like a lot of e-commerce platforms recently, it sounded the alarm on weaker-than-expected consumer spending. On an adjusted basis, eBay earned $1.03 per share, compared with estimates of $1. But it was the outlook that raised alarm bells, as it said it now expects current-quarter adjusted profit per share in the range of $1 to $1.05, compared with estimates of $1.04.

Disney

Disney is due to report fiscal Q4 earnings after the closing bell on Wednesday. EPS of $0.69, which would reflect a sizable 100% recovery in earnings from this time last year. Revenues: $21.7 billion, up 6% from the quarter in the same period a year ago. Disney+ subscriber estimates stand at 146 million, reflecting an 11% decline from this time last year. The company has fallen short of consensus Disney+ subscriber expectations in back-to-back releases, snapping a previous streak of positive beats. But the Netflix results recently saw a substantial climb in shares because subscriber numbers rose substantially beyond forecasts.

Lyft

Lyft, another all-session stock on the IG platform, is due to report on Wednesday. Besides earnings, investors will be looking particularly at Uber’s active-rider growth. To compete with Uber, Lyft had to lower its prices, potentially affecting the top line.

Brent and WTI

Brent and WTI hit a three-month low yesterday afternoon. Analysts agree that the market is now less concerned by the potential for Middle Eastern supply disruptions than weakening demand. Data in China, the world’s biggest crude oil importer, also raised doubts about the demand outlook. Chinese crude oil imports remained robust in October, but its total exports contracted at a quicker pace than expected, adding to fears of lower global energy demand. Oil prices couldn’t find any support in the latest crude inventories. According to the API, crude oil stocks rose by 11.9 million barrels last week. Gasoline inventories fell by 400,000 barrels, while distillate stocks rose by 1 million barrels.