Global stock markets kicked off the week on a strong note after data showed China’s economy performing better than expected despite ongoing trade tensions with the United States. Investor optimism was also buoyed by expectations of Japanese stimulus and a strong outlook for artificial intelligence (AI) companies during the U.S. earnings season.
Why It Matters
China’s stronger-than-forecast GDP growth (1.1% in Q3) and industrial output gains (6.5%) helped calm fears about a global slowdown triggered by U.S.-China trade frictions.
Meanwhile, optimism surrounding AI-driven tech earnings particularly Nvidia continued to lift global equities, reinforcing investor belief in the sector’s long-term profitability.
At the same time, expectations of further U.S. Federal Reserve rate cuts kept global borrowing costs lower and strengthened risk appetite.
Asia: Japan’s Nikkei surged 2.8% to a record high amid hopes of stimulus under likely new Prime Minister Sanae Takaichi.
Europe: The Stoxx 600 rose 0.7% in early trade.
U.S.: Futures pointed to gains of 0.4–0.5% for the S&P 500 and Nasdaq.
Bonds & FX: Treasury yields dipped to 4.02%, while the euro climbed to $1.1662 on a softer dollar.
Commodities: Gold stayed elevated around $4,266/oz, reflecting persistent geopolitical caution, while Brent crude slipped 0.4% to $61.02 on OPEC+ supply signals.
Jason da Silva (Arbuthnot Latham): “There’s still enough scope for healthy returns from big tech; I’m not selling the AI theme yet.”
Kevin Thozet (Carmignac): Warned of “froth” in some AI stocks but said it’s too soon to exit the trade.
Lorenzo Portelli (Amundi): Predicted gold could rise to $5,000 as central banks diversify reserves and the dollar weakens.
What’s Next
Looking ahead, investor attention will pivot to major U.S. corporate earnings that could shape the market’s next moves. Reports from Tesla, Netflix, Procter & Gamble, and Coca-Cola will offer a clearer picture of consumer demand and how well companies are weathering tariffs and inflation pressures. On the policy front, traders expect the Federal Reserve to deliver two more rate cuts by December, a move that could further support equities, weaken the dollar, and sustain global liquidity. However, the upcoming U.S.–China tariff truce deadline on November 10 looms large, and any breakdown in talks could quickly reverse market optimism. Investors will also watch for fresh data on inflation and labor markets to gauge how long central banks can maintain their dovish stance.
With information from Reuters.