Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

US Markets

• Nvidia closed near record high levels at USD 138 per share.
• Price of NVIDIA is up 13% in October 2024, while S&P 500 gained 1.4% vs Intel and AMD dipped 5%.
• Drivers of semi-conductor market is due to backings of strong earnings of Taiwan Semi-Conductor relating to AI Chips.
• Farringdon view semi-conductor markets now as a boom-and-bust cycle.
• Advisor should watch their client position on semi-conductor holdings and manage risk.

Chinese Markets

• Chinese stocks rose amid a volatile session, as investors weigh the move by commercial banks to slash lending rates against calls for increased government spending to help the economy turn a corner.
• China stocks remain flat since last week the CSI 300 hovering around 4,000.
• Farringdon view is that there will not be any major stimulus programme from the Chinese government.
• The Chinese market index will likely plunge soon with CSI 300 prediction at 2000 level.

UK Markets

• UK Autum statement will be on Wednesday the 30^th of October.
• There are speculation seems highly probable that CGT will rise again to match income tax rates on share sales.
• It’s also highly probable that returning expats will have 4 years of tax-free foreign income if they are away for 10 years.
• This is all big plus for personal portfolio bonds as no CGT and gains are foreign sourced income.
• British Petroleum is divesting from renewables looking to double down on oil in a bid to drive profitability.
• British Petroleum is putting up for sale a minority stake in its offshore wind business after selling its onshore US.

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Farringdon Capital Ltd is incorporated in the Dubai International Financial Centre (DIFC) under number 4190, and regulated by the Dubai Financial Services Authority (DFSA).

The information contained in this document is for information only and should not be taken as a recommendation to buy or sell. Investors are reminded that past performance is no indication of future performance.