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eToro Beats Profit Estimates as Retail Investors Drive Market Momentum

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eToro, the stock and cryptocurrency trading platform, reported better-than-expected third-quarter profit on Monday, driven by a surge in retail investor activity and renewed optimism across global markets. The company’s shares rose 7% in afternoon trading following the announcement.

The ongoing equities rally—fueled by steady corporate earnings, cooling inflation expectations, and enthusiasm around the AI-driven tech boom—has prompted investors to reenter riskier assets. Gold has also seen record demand, becoming one of the most sought-after commodities this quarter.

“We have seen the gold craze hitting our customers in October, with gold reaching an all-time high,” said Yoni Assia, eToro’s CEO, in an interview with Reuters. “We also saw some rebalancing in portfolios across U.S. and European equities, and some trimming of tech holdings.”

eToro’s net contribution—which accounts for revenue after deducting crypto costs and margin interest—rose 28% year-on-year to $215 million, while adjusted profit came in at $0.60 per share, beating analysts’ estimates of $0.56 per share (LSEG data).

The company also announced a $150 million share repurchase program, signaling confidence in its growth trajectory.

eToro’s assets under administration jumped 76% year-on-year to $20.8 billion, underscoring strong retail participation supported by accessible trading apps and continuous market volatility.

Looking ahead, eToro plans to expand through acquisitions and enter prediction markets by late 2026. “We’re hungry and we have a large checkbook,” Assia said. “We’ll find the right targets to add value to our customers.”

The firm continues to face fierce competition from rivals such as Robinhood, Charles Schwab, and Morgan Stanley’s E*Trade, but Assia remains confident: “We invented social trading. Copying is the ultimate form of flattery.”

Euro Slides Amid French Political Uncertainty; Dollar Strengthens

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The euro faced significant pressure on Monday, falling 0.57% to $1.05155 due to escalating political uncertainty in France. Prime Minister Michel Barnier is facing a Monday deadline to address budgetary demands or risk a no-confidence vote. This political instability has also weighed heavily on French markets, with CAC 40 index futures down 1.4%.

The far-right National Rally (RN) party, led by Jordan Bardella, indicated its likely support for the no-confidence motion unless last-minute budget compromises are made. If Barnier’s government collapses, analysts expect the euro to experience further downward pressure, especially against the Swiss Franc, according to HSBC’s global FX research head, Paul Mackel.

Dollar Gains Momentum Ahead of Key U.S. Fed Decisions

The U.S. dollar strengthened, supported by global economic factors and comments from President-elect Donald Trump cautioning BRICS nations against moves to replace the greenback in global trade. The dollar index rose 0.24% to 106.28.

This week is pivotal for the U.S. Federal Reserve, as traders await Friday’s payroll report, which could influence the Fed’s decision on a potential rate cut on December 18. Fed Chair Jerome Powell is set to speak on Wednesday, with markets pricing in a 66% probability of a 0.25% rate reduction.

Global Market Movements and Commodities Update

In Asian markets, Chinese stocks gained after strong manufacturing survey data. The Hang Seng Index inched up 0.16%, while mainland Chinese blue-chip stocks climbed 0.6%. U.S. markets also remained strong, with the S&P 500 and Nasdaq closing at record highs in a holiday-shortened session last week.

In the commodities sector:

  • Gold: Fell 1% to $2,627.71 under pressure from the strengthening dollar, following its worst monthly performance since September 2023.
  • Oil: Rose after robust Chinese manufacturing data and continued geopolitical tensions in the Middle East. Brent crude futures gained 0.8% to $72.41 per barrel, and U.S. crude increased by 0.87% to $68.59.

Cryptocurrency Highlights

Ether surged to a six-month high of $3,762.20 before settling at $3,674.44, up 2%. Bitcoin hovered near its all-time high, trading at $96,434, close to the November 22 record of $99,830.

Outlook

Political uncertainty in France and global economic factors are likely to remain key drivers for the euro and broader market movements. Investors will closely watch U.S. Federal Reserve signals this week for further direction, while geopolitical tensions and shifting market dynamics continue to shape commodity and currency trends.

 

Gold Surges Amid Ukraine War Escalation; Tech Stocks Rebound

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Key Market Developments

Gold Reaches 13-Month High Amid Geopolitical Tensions

Gold prices surged to $2,688 per ounce on Friday, recording a weekly rise of over 4.5%, marking the strongest performance since October 2023. The spike was fueled by heightened geopolitical risks, including escalating hostilities in Ukraine. Russia’s recent lowering of its nuclear threshold and the deployment of hypersonic missiles toward Ukraine have prompted a flight to safe-haven assets.

Oil Prices Climb Amid Supply Concerns

Brent crude futures rose nearly 4.5% this week, reaching a two-week high of $74.44 per barrel. The ongoing conflict has intensified fears of supply disruptions, further supporting oil prices.

Tech Stocks Rebound in Asia

Following strong earnings from Nvidia, Asian chipmakers saw gains. Taiwan’s stock index rose 1.5%, South Korea’s advanced 1%, and Japan’s Nikkei climbed 0.8%. However, in China, disappointing earnings weighed on the market, with the CSI300 index dropping 1.6% and Hong Kong’s Hang Seng Index falling 1.75%.

Adani Group Under Pressure

Shares and bonds of the Adani Group faced continued declines after U.S. prosecutors indicted Chairman Gautam Adani for fraud.

Global Currency and Equity Markets

  • Euro Declines: The euro remained under pressure, trading at $1.0469, close to breaking support at last year’s low of $1.0448. A mix of U.S. tariffs, economic slowdown, and political challenges in Europe has weighed on the currency.
  • Dollar Strengthens: The dollar index reached a 13-month high of 107.18, supported by lower expectations for Federal Reserve rate cuts.
  • Yen Volatility: The yen traded at 154.82 per dollar, affected by speculation of a potential Bank of Japan rate hike in December and possible intervention by Japan’s Ministry of Finance.

Broader Market Indicators

  • European Markets: Futures signal a muted opening for European stocks. Eurostoxx 50 futures are up 0.21%, German DAX futures by 0.17%, and FTSE futures by 0.35%.
  • U.S. Treasuries: Benchmark 10-year Treasury yields remained stable at 4.432%, reflecting uncertainty in Federal Reserve policy expectations.

Outlook and Concerns

Ukraine War Intensification

Russia’s use of hypersonic missiles and nuclear rhetoric underscores the growing risks to global stability. Analysts warn the conflict’s escalation could lead to further disruptions in energy and commodity markets.

Economic Pressures in Europe

Europe faces multiple headwinds, including sluggish growth, government instability in Germany and France, and looming U.S. tariffs, placing additional strain on equities and the euro.