Weekly Recap: 3rd - 7th
Global Market Overview:
Global markets ended the week mixed as investors weighed strong policy moves, shifting central bank expectations, and heightened volatility in technology and commodities. While early optimism around trade and policy developments provided support, caution crept in later amid inflation concerns and fading AI momentum.
Japan:
Japan’s markets were closed on Monday for Culture Day but reopened to sharp volatility midweek. The yen weakened to its lowest level since February before rebounding after Finance Minister Satsuki Katayama issued verbal intervention warnings, prompting a rally back to ¥153.40 per USD.
By Thursday, Japanese equities rebounded 1.1% following two steep days of declines, with dip buyers leading gains in the Nikkei. Meanwhile, the government’s coalition under Prime Minister Sanae Takaichi reaffirmed its fiscal stimulus stance, reinforcing expectations for loose monetary policy.
U.S. & China:
U.S.–China relations remained a key driver of sentiment. The week began with China ending a decades-long tax break on gold sales, a move that may reshape domestic demand dynamics.
In trade, the U.S. Supreme Court raised questions about President Trump’s use of executive powers to impose tariffs, adding uncertainty to ongoing negotiations with China, the EU, and other partners. However, both sides reiterated willingness to maintain dialogue.
In Asia, OPEC+ announced a pause in output increases for early 2026, lifting Brent crude above $65 per barrel. By week’s end, U.S. tech optimism returned, led by Tesla and semiconductor shares, while the Federal Reserve’s data silence due to the ongoing government shutdown continued to cloud rate expectations.
Europe:
European markets remained broadly steady amid a busy central bank calendar. The Bank of England kept its policy rate unchanged at 4%, balancing persistent inflation risks against slowing growth. Norway also held rates at 4.5%, while Sweden’s Riksbank maintained its benchmark rate, signalling caution ahead of the winter energy season.
Across the continent, PMI data painted a mixed picture — the Eurozone and UK both posted modest improvements, though output remains subdued. France and Germany continued to show sluggish manufacturing momentum despite early signs of stabilisation.
Markets & Commodities:
Commodity markets saw wide swings.
China’s withdrawal of gold tax exemptions initially drove spot prices below $4,000/oz before recovering to trade near $4,015. Later in the week, renewed haven demand lifted gold 0.7% to $4,005, while silver and copper saw modest rebounds.
Oil gained 1.1% on Friday to $60.07 amid renewed geopolitical risk and OPEC+ supply adjustments. Bitcoin and Ether also rebounded, rising 0.9% and 0.7%, respectively.
Semiconductor stocks led equity weakness midweek — South Korea’s Kospi plunged over 6% before recovering — as stretched AI valuations spurred profit-taking globally.
Data & Earnings:
Economic data remained fragmented due to the U.S. government shutdown.
- Monday saw PMI releases across the Eurozone, UK, and U.S., while later in the week, Sweden’s Riksbank, the RBA, and the BoE all held policy rates steady.
- U.S. job openings, ADP employment, and ISM Services figures provided mixed signals, reinforcing expectations for a gradual Fed easing path once data releases resume.
- Corporate earnings featured BP, AMD, Shopify, McDonald’s, Siemens, Qualcomm, and BMW. Tesla shares rose after shareholder approval of Elon Musk’s compensation plan, while Novo Nordisk, Philips, and Palantir also reported stronger-than-expected results.
Gold’s resilience, oil’s recovery, and equity volatility defined the week — setting the stage for upcoming U.S. inflation data and ongoing central bank commentary next week.
