Friday

• The Federal Reserve cut rates by 25 basis points but Chair Jerome Powell’s cautious comments about December rate cuts dampened investor sentiment. Market expectations for a December cut fell to 66% from previously near-certain levels.
• The US dollar index climbed near three-month highs at 99.39 following the hawkish Fed stance. The Japanese yen weakened significantly against the dollar, heading for a monthly loss exceeding 4% as the Bank of Japan maintained rates unchanged.
• Amazon surged 13% on strong cloud revenue growth while Meta declined 11% despite announcing $30 billion in bond issuance for AI infrastructure.

Thursday

• Global equity markets declined Thursday as Federal Reserve Chair Jerome Powell signaled uncertainty about December rate cuts despite delivering an expected 25 basis point reduction. The US dollar strengthened to two-week highs following Powell’s remarks
• Bitcoin spot trading volumes surged past $300 billion monthly amid heightened cryptocurrency market volatility.
• Mixed earnings from major technology companies added to market uncertainty, with Meta declining despite revenue beats and Alphabet surging on strong cloud growth. The Trump-Xi Jinping meeting produced limited concrete results, with only modest tariff reductions and agricultural purchase promises falling short of market expectations.

Wednesday

• The FTSE 100 started out strong on Wednesday while European stocks were muted as traders await a decision later today from the Federal Reserve and assess the ever-shifting US-China trade dynamic.
• US markets closed at record highs on Tuesday, with the S&P 500 approaching the 7,000 milestone. Japan’s Nikkei surged past 51,000 for the first time.
• Corporate earnings season continues with major technology companies Microsoft, Alphabet, and Meta reporting results after market close.

Tuesday

• Global equities powered ahead earlier in the week, with many indices reaching new highs amid hopes of an easing in trade tensions and potential rate cuts. For example, the S&P 500 hit a fresh all-time high while Europe’s markets paused after reaching records.
• Concerns over liquidity in the U.S. money markets are rising as Federal Reserve draw-down of its balance sheet appears to be nearing an end, prompting analysts to speculate that the central bank may pivot back toward expansion in the near-term.
• Meanwhile, finance executives at the Future Investment Initiative in Riyadh underscored that the U.S. remains the dominant destination for global capital flows over the next 12-18 months, despite elevated concerns over debt levels and tech-market valuations.

Monday

• Global markets surged on Monday following progress in US-China trade negotiations, with negotiators reaching a preliminary framework ahead of a potential meeting between Presidents Trump and Xi Jinping.
• Asian markets posted substantial gains, with Japan’s Nikkei crossing 50,000 for the first time and Chinese markets hitting 10-year peaks. Softer-than-expected US inflation data reinforced expectations for Federal Reserve rate cuts, with markets pricing in a 25 basis point reduction at this week’s policy meeting.
• Germany’s business climate index showed improvement to 88.4 in October. The Federal Reserve meets on Wednesday followed by European Central Bank and Bank of Japan meetings on Thursday.
• Major technology companies including Microsoft, Alphabet, Meta, Apple, and Amazon report earnings this week. Gold prices declined over 1% as investors rotated into riskier assets.