🗓 Wednesday, October 29, 2025
► Europe higher – earnings, copper/tech rally lift sentiment
European equities edged higher as strong earnings and optimism in the AI sector outweighed cautious positioning ahead of the Fed decision. Stoxx 600 +0.25%, DAX -0.04%, CAC 40 +0.05%, FTSE 100 +0.8%, FTSE MIB +0.5%, IBEX +0.5%. Bund 10Y 2.62% (flat), UK 10Y 4.39% (flat). EUR/USD 1.164 (-0.1%), GBP/USD 1.322 (-0.4%), USD/JPY 152.2 (+0.1%). Mercedes-Benz +4.5% after confirming its buyback plan and resilient outlook despite profit drop; Santander +3.8% on record 9M profit; Deutsche Bank +1.3% after Q3 beat; Nokia -4.5% after Nvidia’s $1B 6G partnership announcement. Copper hit a new record high, supporting mining shares, while gold climbed above $4,000 again. Investors remain optimistic ahead of the Fed’s expected 25bp rate cut later today and Trump-Xi talks tomorrow.
► Wall Street higher – tech and AI optimism push indices to record highs
US markets extended gains with the Nasdaq 100 outperforming as AI enthusiasm and strong earnings powered sentiment. S&P 500 +0.3%, Nasdaq 100 +0.5%, Dow +0.15%. Nvidia +3.4% premarket, nearing a $5T valuation after Trump hinted at approval to sell its Blackwell chips to China. Caterpillar +4% on solid Q3 results; Verizon -1% after subscriber losses; CVS +1.5% after mixed results but an upbeat outlook; Boeing -1% after deeper losses; Visa +1% after better-than-expected numbers. Traders are pricing in almost a 100% probability of a 25bp rate cut, with further easing expected in December. The Bank of Canada is also expected to cut its key rate by 25bp today. Despite high valuations, liquidity, AI-driven demand, and easing trade risks remain the main drivers of the rally.
► Asia higher – Japan and Korea lead rally; China tech supports gains
Asian markets advanced, led by strong performances in Japan and South Korea as AI and semiconductor optimism fueled regional momentum. Nikkei +2.2%, Kospi +1.8%, Taiwan +1.2%, Shanghai +0.7%, Shenzhen +2.0%, Hang Seng -0.3%, ASX -1.0%, Nifty +0.45%. USD/JPY 152.2 (+0.1%), USD/CNY 7.10 (flat). Nvidia’s China outlook and easing US-CN trade tensions lifted sentiment, while Trump’s comments about reducing fentanyl-related tariffs further supported markets. Gains in chip and tech stocks offset weakness in energy-related sectors.
Subscribe to see more
