Musk's SpaceX results lift global stock markets

Global stock markets experienced a significant boost on Wednesday, driven by SpaceX's announcement of its first quarterly profit as a publicly traded company. The San Francisco-based aerospace manufacturer reported a net profit of US$4.4 billion for July-September, more than double the expectations and a stark contrast to the loss of US$1.1 billion a year earlier.

This remarkable turnaround sent SpaceX's shares soaring by more than 12 per cent at its peak, closing at US$159.31, a near 8 per cent increase from the previous trading session.

The company's impressive earnings, coupled with the revelation that it could potentially rent out its AI compute capacity, received a positive reaction from market analysts. Patrick O'Hare from Briefing.com stated that SpaceX's earnings release injected "AI spirits" into the market. Peter Cardillo of Spartan Capital Securities added that the results could propel the tech sector towards a solid rally towards year-end.

The positive earnings from SpaceX came ahead of a series of results from other tech giants, including Meta, which reported its AI model model has been well received by investors, but it will need to keep spending to stay ahead of competitors. However, not all news was positive. French supermarket giant Carrefour reported a 24 per cent jump in sales of lenses that help slow short-sightedness in children, yet the company warned that recent violent protests across France would negatively impact its profits.

The chief executive of Carrefour, Alexandre Bompard, stated that around 50 Carrefour stores were looted during the protests, and the company anticipates a cut in operating profit this year by 80 million to 200 million euros (US$90-US$225 million).

The yield on France's benchmark 10-year government bond closed above 5 per cent for the first time since 2002, reflecting investors' demand for higher returns amid a budget standoff and ongoing protests. French police announced that protests would be banned in certain parts of Paris on Thursday, targeting key landmarks such as the Elysee presidential palace, both houses of parliament, tourist attractions like the Louvre museum, and the Champs-Elysees.